Minimum Wage in Ontario in 2018 will increase from $11.60 to $14.00 on January 1, 2018, and then again next year.
At an increase of just over 29 percent, the rise of Ontario minimum wage has made many headlines this year. Within 18 months of announcing the proposed increase, Ontario will have seen the minimum wage move from $11.40 per hour to $11.60, with expected increases to $14.00 on January 1, 2018, and then $15.00 at the start of the following year.
How has the minimum wage in Ontario progressed over 10 years?
If we take a look at the last 10 years, the increase in hourly pay had been a gradual progression. The rate went from $8.00 in 2007; $8.75 in 2008; $9.50 in 2009; $10.25 from 2010 to 2013; $11.00 in 2014; $11.25 in 2015; 11.40 in 2016; and then to $11.60 in 2017.
What happened in 2017?
On May 31, Ontario announced its proposal for the largest increase to the minimum wage that the province has seen, raising the hourly pay to $14 per hour in 2018. That's a 60% increase from 10 years ago. As part of Ontario's plans to create better jobs and fair workplaces, the high pay increase followed with the Ministry of Labour's announcement to make major changes to the province's employment standards and labour laws. In addition to raising the minimum wage, Ontario passed legislation in November to mandate equal pay for equal work, expand personal emergency leave, and increase law enforcement. You can read about the passing of the Fair Workplaces, Better Jobs Act, 2017 here.
Where does this take us in 2018?
As of January 1, 2018, the minimum wage rates per hour will be increased as follows:
| Groupings | Minimum Wage |
| General | $14.00 per hour |
| Students (under 18 years old) | $13.15 per hour |
| Liquor Servers | $12.20 per hour |
| Homeworkers | $15.40 per hour |
| Hunting and Fishing Guides | $70.00 per day (less than five consecutive hours in a day); $140.00 per day (five or more hours in a day, whether or not the hours are consecutive) |
The rise of minimum wage is set to continue at just over 7 percent of an increase the following year. This takes Ontario employers to pay the minimum of $15 per hour as of January 1, 2019.
What does the increase of minimum wage in Ontario mean for small businesses?
Early in November 2017, Ontario's Finance Minister announced a relief package for small businesses to offset the impact of higher wage costs. The plan decreases corporate tax rates for small businesses from 4.5 percent to 3.5 percent. This comes into effect as of January 1, 2018 together with the increase of minimum wage in Ontario. While the corporate tax cut does support small businesses, the reality is that businesses with smaller profit margins will be hit the hardest. It's important that you're prepared to transition your business as the minimum wage in Ontario continues to increase. If you have questions about the minimum wage increase, ask our HR experts. Get support with HR today.
