Ontario’s minimum wage is going up 40 cents an hour Oct. 1 as employers and workers across the province brace for an economic hit from U.S. President Donald Trump‘s tariffs.
The rate rises to $17.60 based on a 2.4 per cent increase in the Ontario consumer price index, Labour Minister David Piccini said Tuesday.
Based on a 40-hour week, the increase amounts to an extra $16 weekly before deductions. The wage has been automatically indexed to inflation for several years.
“Ontario’s minimum wage remains one of the highest in the country,” Piccini said in a statement.
But the hourly rate, which will increase from $17.20, remains below what the Ontario Living Wage Network says is needed to cope with costs in areas across the province.
That ranges from $19.50 in the London region to $26 hourly in the Greater Toronto Area.
“Even with the increase, you’re still well short of being able to pay all your bills if you’re working full-time at the minimum wage,” said network spokesperson Craig Pickthorne.
The living wage rates are set every November based on local costs of shelter, transportation, child care, mobile phone plans, clothing, footwear, the cost of a modest vacation and applicable taxes, he added.
More than 600 Ontario employers have signed on to the living wage pledge, paying certification fees and agreeing to pay the applicable living wage for their region.
With the economy expected to slow, New Democrat Leader Marit Stiles said Premier Doug Ford’s Progressive Conservative government should consider other measures to help people get by.
“One way to do that is with real rent control,” she told reporters, calling for stricter limits on when landlords can increase rents
According to the province, about one-third of workers earning $17.60 or less work in the retail sector while another 24 per cent are employed in accommodation and food services.
