Ontario has recently undergone a revision in its minimum wage rates, affecting a diverse range of workers.
As of October 1, 2023, the general Ontario minimum wage increased from $15.50 to $16.55 per hour, making it just 20 cents lower than the minimum wage in British Columbia.
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General Ontario Minimum Wage Overview
The general minimum wage in Ontario is the lowest rate a company can pay an employee, regardless of their employment type—full-time, part-time, or casual. This rate applies to hourly, commission-based, piece-rate, flat rate, and salaried workers.
Ontario Minimum Wage Raises Since 2020
In 2022, the general Ontario minimum wage underwent two revisions, resulting in a cumulative increase of $1.15 compared to 2021.
Notably, Ontario discontinued the practice of setting a different minimum wage for liquor servers, aligning it with the general minimum wage effective January 1, 2022.
Specialized Minimum Wages
Student Minimum Wage
Students under the age of 18 working 28 hours per week or less during the school year or breaks fall under the student minimum wage. As of October 1, 2023, this rate is $15.60 per hour, marking a $2.60 increase since 2022.
It’s crucial to note that the student minimum wage applies to all students, including international students, under the age of 18.
Work from Home Workers
Homeworkers, employees who work from home, are entitled to a minimum wage of $18.20 per hour, effective October 1, 2023.
Hunting and Fishing Guides, Wilderness Guides
For these roles, the minimum wage is calculated in blocks of time rather than per hour.
A wilderness guide encompasses various activities in a wilderness setting, such as skiing, snowshoeing, canoeing, and more.
General Ontario Minimum Wage Calculation for Commission Earners
When an employee’s remuneration is based entirely or partially on commission, it must meet or exceed the minimum wage for each hour worked. To illustrate this, let’s consider an example:
Scenario: John is paid weekly and works on commission. In one week, he worked 25 hours and earned $300.00 in commission.
John is entitled to a minimum pay of $16.55 per hour. To calculate his compensation:
- Divide the minimum wage ($16.55) by the total hours worked (25): $16.55 / 25 = $413.75.
- The difference between John’s commission compensation ($300) and the federally mandated minimum wage ($413.75) is $113.75.
In this scenario, John’s employer owes him $113.75 to ensure he receives at least the minimum wage for his hours worked.
Future Changes to Minimum Wage
The Ontario government will announce any changes to the minimum wage on or before April 1, 2024, with an effective date of October 1, 2024. Typically, minimum wage rates are indexed annually based on inflation rates.
