Ontario Minimum Wage 2025: What You Need to Know

Last Updated on April 21, 2025

Minimum wage. It’s one of those topics that hits close to home—whether you’re working that first job out of high school, clocking shifts in a coffee shop, or running a small business in downtown Toronto. For many Ontarians, it’s more than just a number on a paycheque—it’s about fairness, survival, and dignity in today’s increasingly expensive world.

As of October 1, 2025, Ontario’s general minimum wage is $17.60 per hour. That’s up from $17.20 in 2024, and it’s part of the province’s annual wage review tied to inflation. But here’s the million-dollar question: Is it enough?

This deep-dive explores the ins and outs of Ontario’s minimum wage in 2025—how we got here, how it compares across Canada, who it impacts most, and what it means for the future of work in the province.

The Basics: What Is Minimum Wage in Ontario?

Minimum wage is the lowest legal hourly rate an employer can pay most employees in the province. It’s designed to protect workers from exploitation and ensure that work, at the very least, pays a basic living. But there are different types of minimum wages in Ontario. Here’s what we’re working with as of October 1, 2025:

These figures are updated annually based on Ontario’s Consumer Price Index (CPI), which is a fancy way of saying the province looks at inflation before setting next year’s rates.

General Minimum Wage

The new general minimum wage rate in Ontario will be $17.60 per hour. This rate applies to most employees in the province, including full-time, part-time, casual, and temporary workers.

Special Minimum Wage Categories

Ontario recognizes that certain job categories have unique circumstances and has established special minimum wage rates accordingly:

• Student Minimum Wage: Students under 18 years old who work 28 hours a week or less during the school year or during a school break are entitled to a minimum wage of $16.60 per hour, effective October 1, 2025.
• Homeworkers Minimum Wage: Employees who do paid work in their own homes for employers are entitled to a minimum wage of $19.35 per hour. ​
• Hunting, Fishing, and Wilderness Guides: These workers have a unique wage structure based on daily hours worked:​
  
  • Less than five consecutive hours in a day: $88.05 per day​
  • Five or more hours in a day (whether or not consecutive): $176.15 per day

Minimum Wage Adjustments: How the Numbers Are Calculated

Since 2020, Ontario has indexed its minimum wage increases to the Consumer Price Index (CPI), a measure of inflation that tracks changes in the cost of everyday goods and services. The idea is simple: as prices go up, so should wages.

Each year, the government reviews CPI data and announces the new rate by April 1, giving businesses and workers time to prepare for the changes that take effect on October 1.

Is CPI Enough?

Not always. CPI doesn’t account for regional affordability issues, like how much rent costs in Toronto versus Thunder Bay. That’s where critics argue for more nuanced adjustments — or at the very least, policies that help offset the disparity, like rent control or public transit subsidies.

Minimum Wage Exemptions and Special Considerations

Certain jobs and employment situations in Ontario are exempt from minimum wage regulations:

• Federally Regulated Employees: Individuals working in industries such as airlines, banks, federal civil service, post offices, radio and TV broadcasting, fisheries, and inter-provincial transportation.​
• Students in Special Programs: Participants in programs run by schools or universities.​
• Community Participation Workers: Individuals under the Ontario Works Act.​
• Police Officers, Inmates, and Young Offenders: Engaged in specific work or rehabilitation programs.
• Elected Officials: Individuals in political, judicial, or union positions.​
• Major Junior Hockey Players: Meeting specific criteria.​

These exemptions are outlined in the Government of Ontario’s guide on special rules.

Minimum Wage vs. Living Wage: Bridging the Gap

While the minimum wage sets the legal floor for earnings, the living wage represents the income necessary to meet basic living expenses in a specific region. According to the Ontario Living Wage Network, the living wage varies across the province:​

These figures highlight a significant gap between the legislated minimum wage and the amount needed to achieve a basic standard of living in many parts of the province.​

Key Differences Between Minimum Wage and Living Wage

The living wage accounts for housing, food, transportation, childcare, and other essential costs, whereas the minimum wage is simply the legal baseline for hourly pay.

How Ontario Compares to the Rest of Canada

Ontario’s minimum wage, set at $17.20 per hour as of April 2025, places it in the upper-middle range when compared to other provinces and territories across Canada. It is among the higher rates nationwide but not the highest.

Here’s how Ontario stacks up against other jurisdictions:

While Ontario does offer one of the highest minimum wages among provinces, it’s outpaced by territories like Nunavut and Yukon, as well as by British Columbia and the federal minimum wage for certain industries. Ontario’s upcoming increase to $17.60 in October 2025 will bring it slightly closer to the top, but it still won’t lead the nation.

Historical Trends: Ontario’s Minimum Wage Over the Years

Between October 2022 and October 2025, Ontario’s minimum wage increased across all categories: the general minimum wage rose by 13.55%, the student minimum wage by 13.70%, homeworkers saw a 13.50% increase, and hunting, fishing, and wilderness guides (working 5+ hours) saw a 13.45% increase.

These incremental increases aim to align with the Consumer Price Index (CPI) to address inflation and the rising cost of living.​

The Big Debate: Is $17.60/hour Enough?

Let’s talk brass tacks. While $17.60/hour might look better than previous years, it still doesn’t go far when you factor in:

• Skyrocketing rent prices (especially in the GTA)
• Food inflation across Canada (grocery bills are up 6.5% YoY)
• Transportation costs, with gas and public transit climbing
• Rising childcare and tuition fees

For someone working full-time at $17.60/hour (40 hours/week), here’s what that looks like annually:

• Gross income: ~$37,000
• Net income (after tax): ~$30,500 (varies based on personal deductions)
• Average rent in Toronto (1-bedroom): ~$2,400/month = ~$28,800/year
• Left for food, transit, savings, and everything else: ~$1,700/year

That doesn’t leave much — and certainly doesn’t account for emergencies, childcare, debt, or education. In short, even with the 2025 bump, minimum wage earners are treading water in many parts of Ontario.

Sector Spotlight: Who Earns Minimum Wage in Ontario?

While the minimum wage technically applies to all low-income workers, certain sectors are disproportionately represented:

• Retail and food service: Restaurants, cafes, grocery stores, and retail shops are top employers of minimum-wage workers.
• Hospitality and tourism: Hotels, resorts, and entertainment venues often pay near-minimum rates.
• Care and support roles: Personal support workers, cleaners, and home care staff are often just above or at minimum wage.
• Students and youth: Many part-time student jobs fall into this wage category, particularly in summer or after-school work.

It’s important to note that women, newcomers, racialized communities, and people with disabilities are also more likely to work minimum-wage jobs, raising concerns around wage equity.

What Employers Need to Know in 2025

If you’re an employer in Ontario, especially in small business or retail, here’s what to consider:

• Payroll budgeting: Plan now for the October 1 increase to $17.60/hour.
• Review classification: Make sure workers are not misclassified as “independent contractors” when they’re actually employees — this is a common legal misstep.
• Record-keeping: Keep detailed records of wages, hours, and breaks — inspections are increasingly common.
• Employee morale: Even small wage increases can boost retention and reduce turnover.

Many employers are also considering offering benefits or flexible hours to stay competitive, especially as job seekers increasingly prioritize work-life balance over just pay.

What Employers Are Saying

From a business perspective, minimum wage increases come with some headaches. Many small businesses in hospitality, retail, and services say they’re:

• Struggling to keep up with labour costs
• Being forced to cut staff hours or raise prices
• Losing margins in already competitive markets

But there’s another side. Some employers say higher wages actually reduce turnover, improve employee morale,

Advocacy and Future Directions

The debate about minimum wage is far from over. Groups like the Ontario Federation of Labour, Workers Action Centre, and the Ontario Living Wage Network continue to push for:

• A general minimum wage of $20/hour or higher
• The elimination of lower student and liquor server wages
• Regular wage increases tied to both inflation and cost of living
• Stronger protections for gig workers and contract employees

As automation, inflation, and precarious work continue to reshape our economy, one thing remains clear: minimum wage must evolve if we want to ensure fairness, dignity, and sustainability for working Canadians.

Common Misconceptions About Minimum Wage

Let’s break down some persistent myths:

“Minimum wage jobs are for teenagers.”

Actually, over half of minimum wage earners in Ontario are adults, many of whom rely on this income to support families.

“If we raise minimum wage, jobs will disappear.”

While some businesses may reduce hours or shift staffing, numerous studies have shown that moderate, predictable increases have a neutral or positive effect on employment overall.

“It’s not meant to be a living wage.”

Maybe once upon a time, but the world has changed. Many people don’t have the luxury of “stepping stone” jobs anymore — minimum wage is often what they earn for years, not months.

Government Support & Additional Resources

Fortunately, minimum wage isn’t the only form of support available. If you’re a low-income earner, here are some provincial and federal programs that might help:

• Canada Workers Benefit (CWB) – federal refundable tax credit for low-income workers
• Ontario Electricity Support Program (OESP) – reduces monthly electricity bills
• Ontario Trillium Benefit (OTB) – helps with energy costs and property tax
• Subsidized housing programs – available in most municipalities
• Free or low-cost health programs – including dental and prescription coverage for eligible residents

While helpful, many of these programs have strict eligibility thresholds or long wait times, making it important to advocate not just for wage increases, but stronger public support systems overall.

More FAQs About Minimum Wage in Ontario

Here are answers to common queries about minimum wage in Ontario:

Conclusion: Where Do We Go From Here?

Minimum wage is more than just economics—it’s about values. It says a lot about how we treat people doing essential but often undervalued work: the grocery clerks, cleaners, servers, caregivers, and support workers who keep this province running.

In 2025, Ontario is inching in the right direction—but there’s still a long road ahead. For workers, for fairness, and for a more liveable province.

Because at the end of the day, no one working full-time should be struggling to afford a roof, food, or heat in Canada’s largest and most prosperous province.