Ontario Increasing Minimum Wage to Support Workers and Families
Fourth Consecutive Annual Increase Provides Significant Boost to Take Home Pay
Ontario is continuing to boost income for workers across the province by increasing the general minimum wage for the fourth consecutive year, which will bring the wage up to $11.60 this fall.
Minister of Labour Kevin Flynn made the announcement today in Toronto. The increase announced today will come into effect on October 1, 2017, and continues the government's efforts to ensure more workers and their families are able to benefit from the province's growing economy. As a result, full-time minimum wage earners in Ontario are now taking home $2,782 more per year than they did just four years ago.
The increase builds on progress Ontario is already making to boost income for workers, including:
- Updating its Fair Wage Policy to ensure government contract workers continue to receive fair wages and benefits
- Reviewing pay equity legislation to help close the gender wage gap
- Moving forward with a basic income pilot, which will provide a minimum income level to help people meet their needs
- Implementing free tuition for more than 210,000 students and increasing supports for apprentices.
Improving the standard of living for workers and families is part of Ontario's plan to create jobs, grow our economy and help people in their everyday lives.
- Changes to the minimum wage are announced by April 1 of each year, and take effect on October 1. This gives businesses and workers time to plan for any increases.
- By October 2017, the general minimum wage will have increased by almost 70 per cent since 2004, when it stood at $6.85.
- The minimum wage remained frozen between 1996 and 2003. This will be the 11th minimum wage increase since 2004.
- Special minimum wage rates that apply to liquor servers, students under 18, hunting and fishing guides, and homeworkers will also increase at the same time.
- The latest rates are the result of changes to legislation that were passed in 2014 to tie minimum wage increases to Ontario’s Consumer Price Index (CPI), a measure of inflation. The move was a result of a recommendation by the Minimum Wage Advisory Panel.
- The industries employing the most minimum wage earners are accommodation and food, retail trade, and information, culture and recreation.
“We are committed to continuing to raise living standards for the hardworking people of Ontario. By ensuring that our province follows a consistent, predictable and impartial process of increasing the minimum wage, we are providing a more stable environment for businesses and more money in the pockets of our workers. And, ultimately, we’re building up a more prosperous economy so everyone in Ontario has the opportunity to reach their full potential.”