As of October 1, 2025, Ontario’s general minimum wage will increase from $17.20 to $17.60 per hour, offering a modest boost to low-wage earners across the province. While this marks a continued commitment to annual wage adjustments, many are asking: Is this enough to keep pace with the rising cost of living in Ontario?
Table of Contents
In this in-depth guide, we’ll cover everything you need to know about the Ontario Minimum Wage Increase 2025, including who it applies to, wage categories, exemptions, timelines, and how it compares to the actual cost of living in the province.
What is Minimum Wage in Ontario?
Minimum wage is the lowest hourly rate employers are legally allowed to pay employees in Ontario. It applies to:
- Full-time
- Part-time
- Casual
- Hourly
- And most commission-based workers
The minimum wage includes employees in bars and restaurants, including alcohol servers, who no longer receive a lower wage as of January 2022.
BC Minimum Wage Increase 2025: What Workers and Employers Need to Know
How Much will BC Teachers’ Pension Increase in 2025? A Comprehensive Guide
ATRF Pension Payment Dates 2025: Alberta Teachers’ Retirement Fund Schedule, Rates & Key Updates
Ontario Minimum Wage Increase 2025: Key Details
Starting October 1, 2025, the general minimum wage will rise by $0.40, bringing the hourly rate to $17.60. This follows the most recent increase to $17.20 in 2024.
| Minimum Wage Category | New Rate (Oct 1, 2025) | Current Rate (Until Sep 30, 2025) |
|---|---|---|
| General Minimum Wage | $17.60/hour | $17.20/hour |
| Student Minimum Wage | $16.55/hour | $16.15/hour |
| Homeworkers Minimum Wage | $19.40/hour | $18.90/hour |
| Hunting/Fishing/Wilderness Guides | $89.00 (<5 hrs/day) / $178.00 (5+ hrs/day) | $85.95 / $171.90 |
Note: These increases apply from October 1, 2025 to September 30, 2026, unless further changes are announced by the Ontario government.
Ontario Minimum Wage Timeline: 2020 to 2026
This timeline highlights the steady increases made over the past six years:
| Effective Date | General Minimum Wage |
|---|---|
| Oct 1, 2025 – Sep 30, 2026 | $17.60 |
| Oct 1, 2024 – Sep 30, 2025 | $17.20 |
| Oct 1, 2023 – Sep 30, 2024 | $16.55 |
| Oct 1, 2022 – Sep 30, 2023 | $15.50 |
| Jan 1, 2022 – Sep 30, 2022 | $15.00 |
| Oct 1, 2021 – Dec 31, 2021 | $14.35 |
| Oct 1, 2020 – Sep 30, 2021 | $14.25 |
Who Is Covered by the Minimum Wage Increase?
Most provincially regulated workers in Ontario are covered, including:
- Retail staff
- Restaurant and hospitality workers
- Delivery drivers
- Freelancers and gig economy workers (in certain cases)
- Bartenders and alcohol servers
Salaried employees are also covered, provided their total pay divided by hours worked equals or exceeds the minimum wage.
Special Minimum Wage Categories
1. Student Minimum Wage:
For students under 18 who work 28 hours or less per week while school is in session.
2. Homeworkers Minimum Wage:
Applies to people doing paid work from home (e.g., sewing, product assembly).
3. Hunting, Fishing, Wilderness Guides:
Paid by the day, not hour:
- Less than 5 hours/day: $89.00
- 5+ hours/day: $178.00
Who is Exempt from Minimum Wage Laws?
Not all workers are covered under provincial minimum wage legislation. Common exemptions include:
- Federal employees (banks, airlines, post office, etc.)
- Students in approved training programs
- Community participation workers (under Ontario Works Act)
- Judges, elected officials, union officials
- Police, inmates, and youth offenders in rehabilitation work
- Major junior hockey players, under certain conditions
More detailed information is available in Ontario’s Employment Standards Act (ESA) guide.
Is Minimum Wage Enough? Comparing to the Living Wage
While Ontario’s minimum wage is the legal floor, the living wage reflects what people actually need to earn to live comfortably.
According to the Ontario Living Wage Network, the 2023 living wage in key regions was:
| Region | Living Wage (2023) |
|---|---|
| Greater Toronto Area | $25.05/hour |
| Ottawa | $21.95/hour |
| London | $20.60/hour |
| Thunder Bay | $19.80/hour |
Even with the 2025 increase to $17.60/hour, many workers remain well below the living wage threshold.
Annual Adjustments: How Ontario Sets Wage Increases
Each year, Ontario reviews minimum wage rates based on the Ontario Consumer Price Index (CPI). Announcements are typically made in April, with new rates taking effect on October 1.
This system is meant to give businesses time to prepare, while helping workers stay in step with inflation.
Terminated from a Minimum Wage Job?
Even minimum wage workers have strong rights in Ontario. If you’re terminated without cause, you’re likely entitled to full severance pay, which can include:
- Minimum notice or pay in lieu
- Vacation pay
- Possible common law severance (especially for long-serving employees)
Final Thoughts: What the Ontario Minimum Wage Increase 2025 Means for You
The Ontario Minimum Wage Increase 2025 to $17.60/hour is a step forward, but it still leaves a significant gap between the legal minimum and what many workers need to meet rising costs of living. Whether you’re an employee trying to make ends meet or an employer managing payroll, understanding these changes is essential for planning ahead.
Stay informed, know your rights, and consider how this change affects your personal or business finances.