Ontario raising minimum wage to $17.20 an hour on Oct. 1

The Ford government says it will be raising the minimum wage rate to $17.20 an hour, starting Oct. 1, 2024.

It marks a 65-cent increase (3.9 per cent) from the current rate of $16.55, and is intended to reflect inflation.

According to the province, a person earning minimum wage and working 40 hours per week will see an annual increase to their pay of up to $1,355.

The minimum wage increase is part of the government’s Working for Workers Four Act, 2024.

“We are providing businesses with certainty and predictability by announcing this annual wage increase six months in advance, while also helping families offset the rising cost of living,” Labour Minister David Piccini said in a release.

The Ontario Living Wage Network estimates the minimum wage to live in the GTA is around $25 an hour.

“Rental and food inflation continue to drive up living wage rates, with the highest increase belonging to Ottawa at 12 per cent. Our 2023 updated living wages range from $18.65 in the southwest region, to $25.05 in the GTA,” it stated in its latest report.

As of 2023, there were 935,600 workers earning at or below $17.20 per hour.

The government says the new minimum wage rate will be the second highest in Canada, behind British Columbia’s $17.40 per hour.

After taking office in 2018, the Ford government cancelled a planned minimum wage increase from $14 to $15 per hour but then raised it to $15 in January 2022. The province tied later increases to the cost of living (inflation).

Last week, the federal government announced it is raising the minimum wage for federally regulated private sector workers to $17.30 per hour on April 1.

With files from The Canadian Press