Ontario will raise its general minimum wage to $17.60 per hour starting October 1, 2025, marking a 40-cent increase from the current rate of $17.20. The increase, announced by the Ontario Ministry of Labour, Immigration, Training and Skills Development, aligns with the province’s policy of tying annual minimum wage adjustments to inflation as measured by the Consumer Price Index.
This adjustment represents a 2.4 percent increase and is expected to benefit over 900,000 workers across the province. The Ontario government said a full-time worker earning the new rate for 40 hours a week will see an annual wage increase of approximately $835 before taxes. The change also applies to other minimum wage categories. The student minimum wage, which applies to workers under 18 who work 28 hours or less per week during the school year or work during school holidays, will increase from $16.20 to $16.60 per hour.
The homeworkers’ wage, which covers employees performing paid work from home, will rise from $18.90 to $19.35 per hour. The hunting, fishing and wilderness guides’ minimum wage will also be adjusted from $86.00 to $88.00 per day when working fewer than five hours in a day, and from $172.05 to $176.95 for more than five hours.
The upcoming increase is part of a legislative framework passed in 2014 under the Liberal government, which mandates annual minimum wage adjustments based on inflation. Although the previous Progressive Conservative government under Premier Doug Ford froze increases for a period after taking office in 2018, annual indexing resumed in 2020.
Ontario’s new wage ranks second nationally
Ontario’s new rate will remain the second-highest provincial minimum wage in Canada, behind only British Columbia, which increased its minimum wage to $17.85 per hour in June 2025. Federally regulated employees in Canada are entitled to a separate minimum wage of $17.75 per hour as of April 2025.
As Ontario raises its minimum wage, Alberta is poised to have the lowest minimum wage among Canadian provinces at $15.00 per hour, where it has remained unchanged since 2018. This shift in the provincial rankings follows increases announced or implemented by multiple provinces in 2025, including Nova Scotia, Prince Edward Island, Manitoba, and Saskatchewan, which are all adjusting their wage floors effective October 1.
According to the Retail Council of Canada, Ontario’s steady minimum wage increases have outpaced many other provinces in recent years. The general minimum wage in Ontario has risen from $14.00 per hour in 2018 to the forthcoming $17.60, representing an overall increase of 25.7 percent over seven years.
Penalties apply for non-compliance with new wage
Ontario’s wage adjustment comes amid broader national efforts to ensure wages reflect inflation and cost-of-living increases. The policy to index wage hikes to inflation is intended to provide predictability for employers and ensure purchasing power for workers, particularly in lower-income brackets.
The next scheduled adjustment will take place in October 2026, following the province’s annual review based on inflation data from Statistics Canada. The Ministry of Labour confirmed that all wage categories would continue to be reviewed and updated annually under current legislation.
Ontario employers are required by law to implement the new minimum wage on the effective date. Failure to comply may result in penalties under the Employment Standards Act. The Ministry has urged businesses to update payroll systems and notify affected employees in advance. – By Content Syndication Services.