Making Ontario's Minimum Wage Fair and Predictable
Legislation Would Tie Minimum Wage to Consumer Price Index
Ontario is taking the next step to ensure the province's minimum wage keeps pace with the cost of living, and that increases are fair for families and predictable for businesses.
The province is introducing the Fair Minimum Wage Act today, which, if passed, would tie future annual minimum wage increases to Ontario's Consumer Price Index. Under the proposed legislation, increases to the general minimum wage and all special categories would be announced by April 1 of each year, and come into effect on Oct. 1.
The proposed legislation follows the province's commitment to increase minimum wage from $10.25 to $11 per hour on June 1, 2014.
Increasing the minimum wage and establishing a fair and predictable way of setting future adjustments is part of the government's economic plan that is creating jobs for today and tomorrow. The comprehensive plan and its six priorities focus on Ontario's greatest strength -- its people and strategic partnerships.
- The proposed legislation acts on the recommendations in the consensus report from Ontario’s Minimum Wage Advisory Panel, which included business, labour, youth and anti-poverty representatives.
- The current minimum wage is $10.25 per hour; it will rise to $11 on June 1, 2014 — the highest in Canada.
- The 75-cent increase reflects the annual change in Ontario’s Consumer Price Index since the last increase on March 31, 2010.
- The increase will establish $11 as the base rate for all future adjustments. The province will also conduct a full review of its minimum wage rates and revision process every five years.
- The Minimum Wage Advisory Panel held 10 public consultations across the province and received more than 400 submissions from organizations, businesses, and individual Ontarians.
“Our government is focused on creating the jobs of today and tomorrow by ensuring fairness for people working on minimum wage and predictability for business. Linking future adjustments to keep up with the cost of living is fair, transparent and responsible. Taking the politics out of setting minimum wage provides fairness for workers and their families and predictability for businesses to stay competitive and create jobs.”