Ontario raises minimum wage effective October 2025

Ontario is set to raise its general minimum wage from C$17.20 to C$17.60 per hour starting October 1, 2025, as reported by Immigration News Canada. 

The 40-cent rise represents a 2.3% growth, and is part of Ontario’s annual inflation adjustment.

In addition to the general rate, students, homeworkers, and others will also see their minimum wages rise under the annual adjustment tied to inflation, which will be updated as follows: 

• C$16.60 per hour for students under 18 working part-time (up from C$16.20)
• C$19.35 per hour for homeworkers, including remote and work-from-home roles (up from C$18.90)
• C$88.05 per day for guides working less than 5 consecutive hours (up from C$86.00)
• C$176.15 per day for guides working 5 or more hours (up from C$172.05)

These wage increases come following the provincial government’s April 1 announcement and are meant to keep up with inflation.

Ontario Minimum Wage Background

Ontario’s minimum wage is reviewed every year to keep pace with rising living costs. 

This is done based on the Ontario Consumer Price Index (CPI), a measure of how the cost of everyday essentials like food, housing, and transportation changes over time.

For someone working full-time at 40 hours per week, the recent 40-cent increase adds up to about C$832 more per year before taxes. 

While modest, it provides meaningful relief for low-wage earners in one of Canada’s most expensive provinces.

The new minimum wage applies to most retail, manufacturing, and service jobs, and follows earlier changes that raised liquor servers’ pay to match the general minimum wage. 

In October 2024, Ontario’s general rate increased from C$16.55 to C$17.20 per hour.

Living Wage Comparisons

Despite the raise, Ontario’s new minimum wage still falls short of living wage standards. 

The provincial average living wage is C$21.66 per hour, with rates as high as C$26.00 in the Greater Toronto Area (GTA), according to the Ontario Living Wage Network’s 2024 calculations.

Compared to these living wage calculations, Ontario’s latest minimum wage leaves a gap of about C$4.06 across Ontario and C$8.40 in the GTA, where housing and food costs are especially high.

In context, a full-time worker potentially earning about C$2,816 per month before taxes may struggle to cover rents of C$2,000 or more, along with groceries, transportation, and other essentials, particularly in urban hubs where costs are highest.

Reactions and Next Steps

The minimum wage increases are seen as a way to help workers keep up with rising prices and to give some support to students, remote workers, and specialized guides. 

However, critics stress that the gap between the minimum wage and true living wages remains significant.

To keep up with the living costs, experts recommend a raise of the minimum wage to between C$20 and C$21 per hour for a more realistic balance with the cost of living.

Businesses now have until October 1, 2025 to adjust payroll and budgets, while workers can expect slightly higher pay once the new rates take effect. 

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