The minimum wage in Ontario increased on October 1, 2020. The general minimum wage has gone up by 25 cents. It is now $14.25 per hour.
What is minimum wage?
Minimum wage is the lowest wage an employer can legally pay their employee. The employer is free to pay more but they cannot pay less than the minimum wage outlined in the Employment Standards Act (ESA).
Full-time, part-time, casual employees or those paid an hourly rate, commission, piece rate, flat rate or salary are eligible for minimum wage. If a worker’s pay is based entirely or partly on commission, it must amount to at least the minimum wage for each hour the employee has worked.
However, some industries are exempt from the minimum wage provisions of the ESA.
Does the $14.25 minimum wage apply to all jobs in Ontario?
No. Besides the general minimum wage, there is a different minimum wage for students, liquor servers, hunting and fishing guides, homeworkers and wilderness guides.
The specialized minimum wages also changed on October 1, 2020. The current rates are as listed below:
Student minimum wage: $13.40 per hour
Liquor servers minimum wage: $12.45 per hour
Hunting and fishing and wilderness guides minimum wage: $71.30 (For working less than five consecutive hours in a day)
$142.60 (For working five or more hours in a day whether or not the hours are consecutive)
Homeworkers wage: $15.70 per hour
What is expected of employers?
Employers in Ontario should pay their minimum wage workers the increased general ($14.25 per hour) and specialized minimum wages from October 1, 2020.
Ontario minimum wage changes
On October 1 every year (starting from 2020), the minimum wage rates may increase annually. The new rates that would apply from October 1 would be announced on or before April 1 of every year, beginning in 2020.
The current increase of 25 cents to the minimum wage in Ontario will be in effect from October 1, 2020, till September 30, 2021.
If a change to the minimum wage rate comes into effect partway through an employee’s pay period, their pay period will be treated as if it were two separate pay periods. The employee will be entitled to at least the minimum wage that applies in each of those periods.
Do you have questions about the minimum wage increase?
For advice on managing minimum wage payments, or any other questions related to employee pay, call an expert today at 1 (833) 247-3652.