Ontario Minimum Wage Increase 2024: Impact on Workers, Businesses & Economy!

In Ontario, the minimum wage is the lowest hourly wage that employers are required by law to provide to their employees. The minimum wage in Ontario 2024 for General jobs is $16.55, for Students under the age of 18, it is $15.60, and for Liquor Services, it is $16.55 per hour.

Ontario Minimum Wage Increase 2024

The Canada Minimum Wage 2024 is currently set at $16.55 per hour, and it applies to all Canadians who work for an organisation.

For workers who are 17 years of age or younger who work over the summer, during a school break, or for 28 hours or fewer per week during the academic year, they are entitled to student minimum wage. 

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Minimum Wage Rate
General $16.55 per hour
Students under 18 $15.60 per hour
Homeworkers $18.20 per hour
Liquor Servers $16.55 per hour
Hunting, Fishing, Wilderness Guides
  • $82.85 (Less than 5 continuous hours in a day)
  • $165.75 (5 or more continuous hours in a day)

Employees who serve alcohol and receive tips regularly are paid the minimum wage for liquor servers. Workers who complete paid work from home are paid a homeworker’s wage.  

An overview of the recent adjustments to Ontario’s general minimum wage can be seen below which apply from October 1, 2023, to September 30, 2024. The next increase of 2024 will be disclosed in April and implemented in October 2024.

Who is eligible for Ontario Minimum Wage Increase 2024

The lowest compensation a business may provide an employee is the minimum wage. All workers, whether they are employed full-time, part-time, or on a contract basis, are entitled to a minimum wage, regardless of whether they get a salary, commission, piece rate, hourly rate, or flat rate. 

In Ontario, almost all workers are entitled to the minimum wage. The website of the Ontario government has a list of certain jobs that are exempt from the minimum wage regulations.

Ontario Minimum Wage Increase

Ontario Minimum Wage Implementation Date 2024

Generally speaking, the minimum wage is adjusted in October each year in response to increases in the Ontario Consumer Price Index. In 2024, it’s expected to increase from $1 to $0.5.

On or before April 1, 2024, the Ontario government will announce any adjustments to the minimum wage, and such changes will take effect on October 1st, 2024. Additionally, this additional sum will be in force for the first nine months of 2025.

Typically, the yearly rate of inflation is used to determine the minimum wage rate, which is then adjusted in the event that the rate of inflation fluctuates.

What will be the effect of Ontario’s minimum wage increase in 2024?

It appears that increasing the minimum wage solves a lot of issues and helps low-income families, who are the ones most in need of assistance in our economy. 

Let’s examine some of the important variables and how minimum wages affect people, businesses, and the economy overall below: 

  • A rise in the minimum wage provides people with a strong incentive to look for employment or, for those who do, to work longer hours.
  • A pay raise typically leads to people feeling more valued, more confident in themselves, and more satisfied at work, all of which contribute to their job stability.
  • Workers are less likely to feel pressured to continuously look for a new job that pays more when they can afford necessities and are not faced with making trade-offs between putting food on the table and paying rent and other costs.
  • Increased money availability leads to increased spending, strengthening the economy, enabling companies to generate more revenue, creating more job opportunities, and boosting labour participation rates.
  • Minimum wage increases will reduce wage disparity between women, minorities, young people, and older workers. However, companies may need to adjust pay for additional personnel, as some higher-paying individuals may leave their jobs for lower-paying positions, leading to a loss of skill in some industries.
  • A stronger economy also incentivizes enterprises to invest in their personnel, and higher salaries incentivize businesses to invest in efficient equipment, increase productivity, and improve international competitiveness.

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