The minimum wage in Ontario is set to increase this October, bringing welcome news for workers across the province as approximately one million people will see a boost in their earnings.
This annual increase, tied to the Ontario Consumer Price Index (CPI), is designed to keep up with inflation and the rising cost of living. As of October 1st, the minimum wage will rise by 3.9%, going from $16.65 to $17.20 per hour.
For a full-time worker earning the minimum wage, this change will result in an annual income of $35,776 before tax, reflecting an increase of $1,355. While this pay raise is certainly appreciated, it still falls well below the income required to live comfortably in cities like Toronto.
A study by the Wellesley Institute from earlier this year suggests that the average Toronto resident needs to earn between $61,654 and $83,680 annually to live a healthy life, almost double what a minimum wage worker would make. Additionally, according to a May 2024 analysis by Ratehub.com, the income needed to afford a house in Toronto is estimated at $218,050 annually—over six times the income of a minimum wage worker.
The last increase to Ontario’s minimum wage occurred in October 2023, when the hourly rate rose from $15.50 to $16.55, marking a 6.8% increase. After the upcoming adjustment, Ontario will have the second-highest minimum wage in Canada, just behind British Columbia at $17.40.
