On October 1, 2021, the general minimum wage rate that applies to most provincially-regulated employees in Ontario will increase from $14.25 to $14.35 per hour. This 10-cent boost is tied to the Ontario Consumer Price Index for 2020.
The minimum wage rates for students, liquor servers, hunting and fishing guides, homeworkers and wilderness guides in Ontario will also increase on October 1, 2021. The Ontario Ministry of Labour has posted a list of these increased rates on its website.
Employers in Ontario who are paying their employees the minimum wage should:
- take steps to ensure their payroll records are updated effective October 1, 2021, to reflect the increased rates. If the October 1 change occurs partway through a pay period, an employer will need to treat the pay period as if it were two distinct periods and the employee must receive at least the minimum wage that applies in each of those periods; and
- consider whether this increase in labour costs will impact budgeting, scheduling or staffing needs, and plan accordingly.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.