Written By Talia K. Bregman and Carl Cunningham
On October 1, 2021, the general minimum wage rate that applies to most provincially-regulated employees in Ontario will increase from $14.25 to $14.35 per hour. This 10-cent boost is tied to the Ontario Consumer Price Index for 2020.
The minimum wage rates for students, liquor servers, hunting and fishing guides, homeworkers and wilderness guides in Ontario will also increase on October 1, 2021. The Ontario Ministry of Labour has posted a list of these increased rates on its website.
Employers in Ontario who are paying their employees the minimum wage should:
- take steps to ensure their payroll records are updated effective October 1, 2021, to reflect the increased rates. If the October 1 change occurs partway through a pay period, an employer will need to treat the pay period as if it were two distinct periods and the employee must receive at least the minimum wage that applies in each of those periods; and
- consider whether this increase in labour costs will impact budgeting, scheduling or staffing needs, and plan accordingly.
If you have any questions about this upcoming change, please contact the Bennett Jones Employment Services group.
Please note that this publication presents an overview of notable legal trends and related updates. It is intended for informational purposes and not as a replacement for detailed legal advice. If you need guidance tailored to your specific circumstances, please contact one of the authors to explore how we can help you navigate your legal needs.
For permission to republish this or any other publication, contact Amrita Kochhar at kochhara@bennettjones.com.
Bennett Jones