Ontario government has officially confirmed that the new Ontario minimum wage increase of 2024 will be effective from October 1.
The Ontario government is increasing the minimum wage from $16.55 to $17.20 per hour. This means if you work in Ontario, you’ll earn at least $17.20 for every hour you work, starting October 1.
This 3.9% annualized salary increase is based on the Ontario Consumer Price Index, which measures how prices change over time. It means the cost of living is going up, so the minimum wage needs to increase too.
After this raise, Ontario will have the second-highest minimum wage among the major provinces in Canada. Currently, British Columbia has the highest minimum wage, set at $17.40 per hour, effective from June 1, 2024.
These minimum wage rates get adjusted every year to keep up with inflation. If inflation changes, the new rates are announced by April 1 and take effect on October 1.
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What This Means for Workers?
For full-time workers earning the basic minimum wage and working 40 hours per week, this increase means an annual salary boost of approximately $1,355.
In 2023, over 935,000 workers in Ontario were earning $17.20 per hour or less, highlighting the significant number of individuals this adjustment will benefit.
Special Ontario Minimum Wage Increase
The government’s announcement doesn’t just stop with the general minimum wage. In addition to the general minimum wage increase, specific minimum wage rates for students and individuals working from home (homeworkers) will also see an increase, starting October 1.
- Students Under 18: Students who are under 18 years old and work up to 28 hours per week during the academic year, as well as during school breaks or summer vacations, will experience a boost in their hourly wage from $15.60 to $16.20.
- Homeworkers: The hourly minimum wage for homeworkers in Ontario doing paid work from home will increase from $18.20 to $18.90. Students working as homeworkers even if they’re under 18, have to get paid at least the minimum wage for homeworkers.
- Hunting, Fishing, and Wilderness Guides: The minimum wage for hunting, fishing, and wilderness guides will increase from $82.85 to $86 a day if they work less than five hours in a row, and from $165.75 to $172.05 a day if they work five hours or more.
Future Ontario Minimum Wage Increases
The announcement also gives a nod to the future, with expectations of further increases by October 1, 2025. These adjustments will continue to be tied to the inflation rate, potentially bringing the Ontario minimum wage close to $18 per hour.
Ontario Minimum Wage History
Workers in Ontario got a bit of good news, but the minimum wage went up by $2.95 an hour over the past four years.
| Minimum Wage Rate | General Minimum Wage |
| Effective October 1, 2024 | $17.20 per hour |
| Effective October 1, 2023 | $16.55 per hour |
| Effective October 1, 2022 | $15.50 per hour |
| Effective January 1, 2022 | $15.00 per hour |
| Effective October 1, 2021 | $14.35 per hour |
| Effective October 1, 2020 | $14.25 per hour |
For students under 18 in Ontario, their minimum wage only went up by $2.80 an hour since October 2020.
| Minimum Wage Rate | Student Minimum Wage |
| Effective October 1, 2024 | $16.20 per hour |
| Effective October 1, 2023 | $15.60 per hour |
| Effective October 1, 2022 | $14.60 per hour |
| Effective January 1, 2022 | $14.10 per hour |
| Effective October 1, 2021 | $13.50 per hour |
| Effective October 1, 2020 | $13.40 per hour |
Homeworkers who work from home saw the biggest increase, with their hourly pay going up by $3.20, from $15.70 to $18.90 per hour.
| Minimum Wage Rate | Homeworkers Wage |
| Effective October 1, 2024 | $18.90 per hour |
| Effective October 1, 2023 | $18.20 per hour |
| Effective October 1, 2022 | $17.05 per hour |
| Effective January 1, 2022 | $16.50 per hour |
| Effective October 1, 2021 | $15.80 per hour |
| Effective October 1, 2020 | $15.70 per hour |
The Ontario minimum wage increase to $17.20 per hour marks a significant step in aligning wages with the cost of living in Ontario.
The adjustment extends beyond the general minimum wage, affecting students, homeworkers, and specific professions like guides.
There remains an ongoing conversation about the adequacy of minimum wages in meeting the real costs of living in Ontario.
Minimum Wage and Living Wage in Ontario
Despite the positive strides, a gap remains between the minimum wage and the living wage – the latter defined as the hourly rate at which a worker can meet their basic needs and participate in community life. The Ontario Living Wage Network points out:
- The average living wage across Ontario sits at around $21 per hour, soaring above $25 in the Greater Toronto Area (GTA).
- The province boasts 868 certified living wage workplaces, underlining a growing recognition of the need to exceed the minimum wage to ensure quality of life.
The report of Ontario Living Wage Network provides us with the breakdown of living wages in different regions of Ontario:
| Region | Living Wage |
| Greater Toronto Area | $25.05 |
| Grey Bruce Perth Huron Simcoe | $22.75 |
| Dufferin Waterloo Guelph-Wellington | $20.90 |
| Brant Niagara Haldimand Norfolk | $20.35 |
| North | $19.80 |
| Ottawa | $21.95 |
| East | $20.60 |
| Hamilton | $20.80 |
| Southwest | $18.65 |
| London Elgin Oxford | $18.85 |
