Ontario to Increase Minimum Wage in 2025
Ontario is set for a significant shift in its labour landscape as the province prepares to announce a new minimum wage increase before April 1, 2025.
This anticipated adjustment aims to help workers keep up with the rising cost of living and reflects the government’s commitment to fair wages. The minimum wage ensures that even the lowest-paid employees receive a wage that allows for at least a basic standard of living.
Ontario’s minimum hourly wage rates vary by category, including general labour, students, work-from-home employees, and guides. In this article, we provide insights into the current minimum wage rates for these categories and the projected increase set for October 1, 2025.
General Ontario Minimum Wage Increase 2025
As of October 1, 2024, Ontario’s general minimum wage stands at $17.20 per hour, an increase from the previous rate of $16.55.
This 3.9% rise aligns with the Ontario Consumer Price Index (CPI), ensuring wages keep pace with inflation. While the official announcement is pending, projections based on historical CPI data suggest that Ontario’s minimum wage could rise to approximately $17.82 per hour by October 1, 2025. This adjustment continues the province’s effort to maintain wage growth in line with economic trends.
It’s important to note that Ontario previously had a separate minimum wage for liquor servers, but this category has now been aligned with the general minimum wage.
Increase in Student Minimum Wage in Ontario
As of October 1, 2024, the minimum wage for students in Ontario is $16.20 per hour, reflecting a 60-cent increase from the previous year.
This wage applies to students under 18 who work 28 hours or less per week during the school year or full-time during school breaks and summer vacations. Based on historical trends, the student minimum wage is expected to rise to around $16.70 in 2025.
This rate applies to all students under 18, including international students who qualify for the student minimum wage. However, students working from home must be paid according to the homeworker’s minimum wage.
Work-from-Home Minimum Wage Increase 2025
Employees who work from home, categorized as homeworkers, are currently entitled to a minimum wage of $18.90 per hour as of October 1, 2024.
Homeworkers include individuals involved in various tasks such as sewing clothes for manufacturers, answering phone calls for call centres, or designing software for IT companies.
Projections suggest that the homeworker’s minimum wage will rise to approximately $19.40 per hour in 2025.
Wage Calculation for Commission-Based Employees
For employees earning commission, their total pay must meet or exceed the hourly minimum wage.
Example Scenario: If Luba, a commission-based worker, earns $300 for 25 hours of work at a minimum wage of $17.20 per hour, she would be entitled to an additional $130 to meet the minimum hourly wage requirement for those hours.
What the Minimum Wage Increase Means for Ontario
As Ontario moves into 2025, the anticipated minimum wage increase is more than just a policy adjustment—it is a reflection of the province’s commitment to fair compensation, the value of labour, and economic stability.
Both workers and employers should prepare for these changes, understanding their broader implications for living standards, business operations, and economic health.
Stay informed by keeping an eye on official announcements from the Ontario government as developments unfold.
Frequently Asked Questions
What is the current minimum wage in Ontario?
The current minimum wage in Ontario is $17.20 per hour as of October 1, 2024.
Is the minimum wage in Ontario increasing in 2025?
Yes, Ontario’s minimum wage is expected to rise on October 1, 2025, with the exact increase to be announced before April 1, 2025.
