Minimum wage in Ontario is going to increase this year

Ontario minimum wage is set to increase this year, giving workers a much-needed boost amid the rising cost of living.

The provincial government announced on Wednesday that the minimum wage will increase from $17.60 to $17.95 an hour starting Oct. 1, benefiting more than 700,000 workers in Ontario.

Come October, Ontario's new minimum wage will be the third-highest in Canada, after British Columbia increases its minimum wage from $17.85 to $18.25 on June 1. While Ontario will have one of the highest rates among provinces, it's workers in the territory of Nunavut that earn the most in the country, at $19.75 an hour.

Ontario's Minister of Labour, David Piccini, says the upcoming increase is aimed at "supporting families through economic uncertainty" and "giving businesses the stability and predictability they need to plan and grow."

According to the province, 35 per cent of minimum wage employees work in retail, while 24 per cent work in food services and accommodation (reception, concierge, maintenance). 

So, for someone earning the general minimum wage while working 40 hours per week, they will soon see an annual pay increase of $728.

This increase comes at a critical time when many Ontario residents continue to struggle with the rising cost of living, with some reporting concerns about making ends meet. Housing costs remain a major burden, not just in Toronto but across the province, while groceries and other essentials have also become significantly more expensive.

For minimum wage workers, keeping up with these costs can be a real challenge, so even a modest increase of 35 cents an hour can make a difference over time.