Minimum wage in Ontario: Current rates and what employers must pay

Published Thursday 23 July 2026

Table of contents

• What is the minimum wage in Ontario?
• What are the special minimum wage rates?
• Who the Ontario minimum wage covers
• When the rate changes and how it's set
• What should employers do now?
• Simplify Ontario payroll with Xero
• FAQs on minimum wage in Ontario

Key takeaways

• Ontario's general minimum wage is $17.60 per hour as of 1 October 2025, with a confirmed increase to $17.95 per hour on 1 October 2026, and these rates apply. consistently across all municipalities including Toronto with no regional variations.
• Some workers have different rates or rules, including students under 18, homeworkers, and wilderness guides, while liquor servers now earn the general minimum wage.
• Make sure every employee earns at least the minimum wage for every hour worked, regardless of whether they’re salaried, on commission, or paid per task, and tips don’t count toward this.
• Minimum wage updates happen each year on 1 October, so you’ll need to review payroll, adjust pay rates, and check compliance ahead of time.

What is the minimum wage in Ontario?

Ontario's general minimum wage is $17.60 per hour as of 1 October 2025, covering most employees across the province. The province has confirmed that the rate will increase to $17.95 per hour on 1 October 2026, continuing the annual adjustment process tied to inflation.

This rate applies consistently across all Ontario municipalities. The Toronto minimum wage matches the provincial standard, as do rates in Ottawa, Hamilton, and all other cities. There are no regional variations within Ontario, simplifying compliance for employers operating in multiple locations.

The previous rate was $17.20 per hour (1 October 2024), representing a 2.3% increase to the current $17.60 figure. These annual adjustments reflect Ontario's commitment to maintaining minimum wage purchasing power against the rising cost of living.

All employers must pay at least this hourly rate for every hour worked, with specific exceptions for students, homeworkers, and wilderness guides who have their own designated rates under the Employment Standards Act.

For official confirmation and effective dates, visit the Ontario government newsroom.

What are the special minimum wage rates?

Ontario maintains separate minimum wage categories for specific worker groups. You need to apply the right rate for each role to reflect different working conditions and stay compliant.

Students

Thestudent minimum wage Ontario rate is $16.60 per hour(as of 1 October 2025). This applies to students under 18 years of age who work 28 hours per week or less during the school year, or during school breaks and summer holidays. This rate will increase to $16.90 per hour on 1 October 2026, alongside the general minimum wage increase.

Once students turn 18 or work more than 28 hours in a week when school is in session, they must receive the general minimum wage of $17.60 per hour. Employers should track student hours carefully to ensure they're applying the correct rate based on age and weekly hours worked.

Verify current student rates and any hour-limit conditions on the Ontario Employment Standards Act guide.

Homeworkers

Homeworkers – employees who perform paid work in their own residence for an employer – receive a higher rate of $19.35 per hour (as of 1 October 2025). This premium rate accounts for overhead costs workers bear when using their home as a workplace, including utilities, equipment, and space. This rate will increase to $19.70 per hour on 1 October 2026.

This category covers remote workers doing tasks like assembly, data entry, or product finishing at home, not independent contractors or self-employed individuals. Review the Ontario Employment Standards Act guide for specific definitions and any exceptions.

Hunting and wilderness guides

Hunting and wilderness guides operate under a different structure entirely; they receive daily and half-day minimums rather than hourly rates. For 2025-2026, guides must receive whichever is higher: the applicable daily/half-day minimum or their hours worked multiplied by the general minimum wage of $17.60 per hour.

This ensures guides are fairly compensated whether they work short or extended shifts in remote locations. Employers should calculate both amounts and pay the greater figure. Current daily amounts are available on the Ontario Employment Standards Act guide.

Liquor servers

Ontario eliminated the separate liquor server minimum wage on 1 January 2022. Liquor servers now earn the general minimum wage, $17.60 per hour as of 1 October 2025, rising to $17.95 per hour on 1 October 2026.

This applies to all employees who serve alcohol in restaurants, bars, and hospitality venues. Tips and gratuities don't count toward this rate. You must pay the full general minimum wage before any tip income employees receive.

Check the Ontario Employment Standards Act minimum wage guide on Ontario.ca each October for updates to all special rates, as they adjust annually alongside the general minimum wage.

Who the Ontario minimum wage covers

Ontario's minimum wage applies to most employees regardless of how you structure their compensation. You must ensure total pay meets or exceeds the applicable minimum wage for all hours worked in each pay period, whether employees are paid hourly, on salary, by commission, or through piece rates.

Salaried workers

For salaried employees, divide their total salary by the number of hours they actually worked during the pay period. If this calculation produces an hourly rate below the minimum wage, you must top up their pay to meet the legal minimum.

For example, if a salaried employee earning $2,800 monthly works 170 hours in a month, their effective hourly rate is $16.47 – below the $17.60 minimum. You'd need to add $192.10 to bring them to the legal minimum for that period.

Commission and piecework

Commission-based and piece-rate employees must average at least the minimum wage across all hours worked. Track their total hours carefully and calculate their effective hourly rate by dividing total earnings by total hours. If they fall short, you must make up the difference.

You need accurate time tracking to prove compliance during Ministry of Labour audits. Many employers use digital time-tracking systems to maintain detailed records of hours worked alongside commission or piece-rate earnings.

Tips and gratuities

You can't include tips and gratuities when you calculate whether you've met minimum wage obligations in Ontario. You must pay the full applicable minimum wage before any tips employees receive. You cannot use tip income to offset or reduce the base hourly rate you're required to pay.

This means servers, bartenders, delivery drivers, and other tipped employees must receive at least $17.60 per hour (or the applicable special rate) regardless of tip income.

Federal sector employees

Employees in federally regulated industries – including banking, telecommunications, interprovincial transportation, and broadcasting – follow the federal minimum wage Canada rules, not Ontario's provincial rates. As of 1 April 2026, the federal minimum wage is $18.15 per hour.

If you operate in multiple provinces or employ workers in federally regulated sectors, check Canada minimum wage by province to ensure you're applying the correct rate for each employee's jurisdiction.

When the rate changes and how it’s set

Ontario follows a predictable annual schedule for minimum wage increases. The province announces changes by 1 April each year, and new rates take effect on 1 October, giving employers six months to prepare and update payroll systems.

How rates are determined

Ontario ties minimum wage increases to the provincialconsumer price index (CPI), which measures inflation and changes in the cost of living. The Ministry of Labour calculates the adjustment based on the year-over-year percentage change in the Ontario CPI, ensuring wages keep pace with rising prices for goods and services.

This formula-based approach provides transparency and predictability. Employers can anticipate annual increases in the 2-3% range during periods of moderate inflation, though the exact figure depends on economic conditions.

For context on how CPI is measured, see Statistics Canada's consumer price indexes.

Annual timeline

The province follows a consistent schedule for announcing and implementing minimum wage changes:

• By 1 April: The Ontario government announces the upcoming minimum wage rate for the following October
• 1 October: The new rate takes effect for all applicable workers

This timeline applies to the general minimum wage and all special rates (students, homeworkers, wilderness guides). All rates adjust simultaneously on the same 1 October effective date.

Recent rates at a glance

Here's the progression of Ontario's general minimum wage over recent years:

• 1 October 2026: $17.95 per hour (confirmed)
• 1 October 2025: $17.60 per hour (current)
• 1 October 2024: $17.20 per hour
• 1 October 2023: $16.55 per hour
• 1 October 2022: $15.50 per hour

The 2025 rate of $17.60 represents a $0.40 increase from the previous year, and the 2026 rate of $17.95 will add another $0.35 per hour.

For the latest announcements and any updates to special rates, visit the Ontario newsroom.

What should employers do now?

Staying ahead of minimum wage changes protects your business from compliance issues and helps you plan labour costs accurately. Follow this practical checklist to update payroll, verify compliance, and communicate changes before the 1 October effective date.

Update payroll rates

Flag the 1 October effective date in your calendar and payroll system now. Update all pay items – hourly rates, salary calculations, and any automated payment schedules – to reflect the new minimum wage at least one week before the change takes effect.

If a pay period spans the rate change date, pro-rate the wages: calculate hours worked before 1 October at the old rate and hours worked from 1 October onward at the new rate. Most payroll software handles this automatically if you input the effective date correctly.

For guidance on payroll calculations, see this guide on how to calculate overtime.

Check salaried and variable pay

Review all salaried, commission, and piece-rate roles to ensure average hourly pay meets the applicable minimum when divided by hours worked. Recalculate based on the new rate and adjust salary amounts, commission guarantees, or piece-rate targets if anyone falls short.

For example, if a salaried employee works an average of 160 hours per month, their monthly salary must be at least $2,872 ($17.95 × 160 hours) after 1 October 2026 to comply with the new rate.

Communicate and update job ads

Notify employees of new rates in writing at least two weeks before the effective date. Include the new hourly or salary figure, the effective date, and a brief explanation that the change reflects Ontario's annual adjustment.

Refresh all job advertisements and offer letters with the correct minimum wage figures. Outdated postings can create confusion during hiring and may signal non-compliance to prospective employees. Store a dated record of all wage change communications for your files.

Review budgets and pricing

Estimate the impact on your total labour costs by multiplying the hourly increase by your total employee hours per month. For a business with five full-time minimum-wage employees working 160 hours each, the October 2026 increase of $0.35/hour adds roughly $280 per month ($1,680 annually) to payroll expenses.

Adjust staffing schedules, operating budgets, or pricing where necessary to maintain healthy margins. Monitor your profit-and-loss statement after the change to ensure the adjustment doesn't erode profitability.

Review overtime and deductions

Recalculate overtime rates, vacation pay accruals, and any statutory deductions that are based on hourly wages. In Ontario, overtime is paid at 1.5 times the regular rate, so a minimum-wage employee's overtime rate will increase from $26.40 to $26.93 per hour after 1 October 2026.

Ensure payroll deductions for Canada Pension Plan (CPP), Employment Insurance (EI), and income tax align with the new wage levels. Use the CRA Payroll Deductions Online Calculator to verify correct withholding amounts.

For more on payroll tax obligations, see this guide on what payroll tax is.

Simplify Ontario payroll with Xero

You can use Xero to track employee hours, calculate pay based on Ontario's minimum wage rules, and keep your payroll records accurate for audits. Get one month free with Xero.

FAQs on minimum wage in Ontario

Here are answers to common questions about Ontario's minimum wage rules, special rates, and employer obligations under the Employment Standards Act.

Is the minimum wage going up to 20 dollars in Ontario?

The confirmed rate for 1 October 2026 is $17.95 per hour, so you don't need to budget for a $20 minimum wage at this stage. You can expect future changes to follow Ontario's annual consumer price index-based adjustment process, with new rates announced by 1 April each year.

What is the three hour rule in Ontario?

The three-hour rule requires employers to pay employees for at least three hours at the minimum wage if they're scheduled to work but sent home early or called in for a shift shorter than three hours.

For example, if you call an employee in for a two-hour shift, you must pay them for three hours at their regular rate (minimum $17.60 × 3 = $52.80 as of October 2025).

This rule protects workers from unpredictable scheduling and ensures they receive minimum compensation for reporting to work.

Will the Ontario minimum wage increase in 2026?

Yes. The Ontario government has confirmed the minimum wage will increase to $17.95 per hour on 1 October 2026, up from the current $17.60 per hour. This represents a $0.35 per hour increase.

Special rates for students, homeworkers, and wilderness guides will also adjust on the same date. The province will announce the 2027 rate by 1 April 2027, following the same annual schedule.

Do tips count toward minimum wage in Ontario?

No. Tips and gratuities cannot be counted toward minimum wage obligations in Ontario.

You must pay at least the full minimum wage before tips, so plan your wage budgets without counting gratuities. Use tips as an extra incentive for staff, not as a substitute for meeting minimum wage requirements.