Ontario’s minimum wage will rise from $17.60 to $17.95 an hour on Oct. 1, giving low-wage workers a modest pay bump as the province ties the annual increase to inflation. The change is expected to affect more than 700,000 workers across Ontario, according to the provincial government.
Minimum wage increase tied to inflation
The province adjusts minimum wage each year using the Ontario Consumer Price Index. Ontario’s Ministry of Labour said a person earning minimum wage and working 40 hours a week would make an extra $728 annually under the new rate. The government described the increase as “a balanced approach that supports workers’ earning power and helps keep Ontario competitive in a time of global economic uncertainty.”
Labour Minister David Piccini said the raise will keep Ontario among the provinces with the highest minimum wage rates in Canada. “Ontario workers are the engine of this province,” he said. The province also said about 35 per cent of minimum wage earners work in retail trade.
Living wage debate continues in GTA
The increase is still well below what advocates say workers need to cover basic expenses. The Ontario Living Wage Network says the living wage in the Greater Toronto Area is $27.20 an hour.
Gurpreet Singh, a warehouse worker in Brampton, called the increase a step in the right direction, but said it will not solve the affordability crisis. “This is a welcome move knowing how rent, grocies have increased dramitically and government should do more.”
The new wage takes effect Oct. 1.
