What is the Minimum Wage?
The minimum wage is a legally-enforced standard that sets the lowest wage rate an employer can pay an employee. The rate differs by province and territory, as well as for select professions. In accordance, the minimum wage excludes workers that are self-employed, on contract, or commissioned; this also extends to students in training programs. As an employer, it is important to know the applicable legislation around compensating your employees appropriately and legally. Peninsula advises employers on the minimum wage requirements, as outlined in the Employment Standards Act.
What is Ontario’s Minimum Wage?
As of October 1, 2017, the Ontario minimum wage rates per hour are as follows:
| Groupings | Minimum Wage (per hour) |
| General | $11.60 |
| Students (under 18 years old) | $10.90 |
| Liquor Servers | $10.10 |
| Homeworkers | $12.80 |
| Hunting and Fishing Guides | $58.00 (less than five consecutive hours in a day); $116.00 (five or more hours in a day, whether or not the hours are consecutive) |
This information is sourced from the Ontario Ministry of Labour.
In the news: Expect annual increases to Ontario’s minimum wage
The Ontario Government has proposed a gradual minimum wage increase to $14 per hour as of January 1, 2018, followed by annual increases at the rate of inflation. By January 1, 2019, the general minimum wage is confirmed for an increase to $15 per hour, with adjusted rates for workers outside the general grouping; the proposed rates are as follows:
| Groupings | Minimum Wage (per hour) |
| General | $15.00 |
| Students (under 18 years old) | $14.10 |
| Liquor Servers | $13.05 |
| Homeworkers | $16.50 |
| Hunting and Fishing Guides | $75.00 (less than five consecutive hours in a day); $150.00 (five or more hours in a day, whether or not the hours are consecutive) |
The minimum wage proposal is part of Ontario’s plan to create better jobs and fair workplaces. Currently, 50% of workers in Ontario who earn less than $15 per hour are between the ages of 25 and 64, and the majority of this demographic are female. In addition to the minimum wage increases, Ontario’s plans are also set to make adjustments to part-time employment pay, as well as, vacation entitlement and pay. For employers, raising the minimum wage is expected to improve productivity, increase employee retention and boost the purchasing power of workers. It’s important to stay up-to-date with minimum wage adjustments as they continue to increase. As an employer, it is your obligation to compensate employees according to their legal entitlement. Improper compensation can cause legal challenges if an employee files a complaint. Do you still have questions? We have the answers. Contact Peninsula’s complimentary HR and employer advice line - 1-(833) 247-3651. We’re here to help you 24/7.
