Effective October 1, 2025, Ontario’s minimum wage will rise to $17.60 per hour, reflecting the province’s annual Consumer Price Index (CPI) adjustment.
This change represents a $0.40 (≈2.3%) increase from the prior rate and benefits a wide range of workers—including students, remote workers (“homeworkers”), and outdoor guides—across the province.
Why Ontario Is Raising the Minimum Wage
The annual CPI-linked adjustment is designed to preserve the purchasing power of low-wage workers amid inflation. Beyond the general boost, Ontario also recognizes:
- Student contributions with a tailored rate.
- Home-based worker costs through a higher homeworker wage.
- Challenging outdoor roles via daily rate adjustments for guides.
Ontario’s Updated Minimum Wage Table (Oct 1, 2025)
| Worker Category | Current Rate | New Rate |
|---|---|---|
| General Minimum Wage | $17.20/hr | $17.60/hr |
| Student (Under 18, ≤28 hrs/week) | $16.20/hr | $16.60/hr |
| Homeworkers (Remote Workers) | $18.90/hr | $19.35/hr |
| Guides (<5 hrs/day) | $86.00/day | $88.05/day |
| Guides (≥5 hrs/day) | $172.05/day | $176.15/day |
These rates apply from October 1, 2025, through to September 30, 2026, unless amended by new legislation.
What These Changes Mean for Workers
- Full-time workers (40 hrs/week) will earn approximately $800 more annually pre-tax—a notable step toward reducing financial strain.
- Students under 18 will benefit from a slightly improved rate, balancing affordability and fair compensation.
- Homeworkers, who bear extra utility and equipment costs, receive a meaningful increase.
- Outdoor guides, who work irregular hours and in remote settings, see increased daily compensation reflecting their unique roles.
Minimum Wage vs. Living Wage in Ontario
Despite the increase, the new minimum wage remains below the living wage—the hourly rate required to cover basic expenses. The Ontario Living Wage Network estimates:
- Provincial average living wage: $21.66/hr
- Toronto average living wage: up to $26/hr
These figures highlight a $4–$8 per hour gap in urban regions, underlining ongoing discussions about whether minimum wage should better reflect living costs.
Who Must Be Paid the New Rates?
Most provincially regulated workers are covered by Ontario’s minimum wage rules, including:
- Full-time, part-time, and casual employees.
- Salaried, hourly, freelance, and commission-based staff.
- New employees irrespective of industry—retail, hospitality, administration, and more.
Note: Federally regulated sectors (e.g., banking, telecommunications) follow separate wage standards. Employers also have legal obligations to adjust wages even mid-pay-period and ensure back pay if rates change mid-cycle.
Changes Employers Should Make
- Update payroll systems to reflect the October 1 increase.
- Adjust employment contracts and job postings to align with legal rates.
- Communicate changes clearly with staff ahead of implementation.
- Audit compensation structures to ensure full compliance, especially for homeworkers and guides.
Ontario’s upcoming wage increase to $17.60/hr (effective October 1, 2025) represents meaningful progress toward keeping up with inflation and supporting vulnerable workers.
Enhanced rates for students, homeworkers, and guides further align workforce compensation with real needs.
Nevertheless, the minimum wage continues to lag behind the living wage, especially in urban areas—a gap that renews the dialogue around fair pay.
Workers and employers alike must prepare now to meet these adjustments with compliance and awareness.
FAQs
When does the new minimum wage in Ontario take effect?
The updated rates begin on October 1, 2025, and are effective for one year until September 30, 2026.
What is the new homeworkers’ minimum wage?
Home-based employees (homeworkers) will receive $19.35 per hour under the new 2025 wage schedule.
How much will a full-time worker earn annually after the increase?
At $17.60 per hour, a full-time employee working 40 hours per week can expect to earn approximately $800 more annually before taxes.