Starting October 1, 2025, workplaces across Ontario will see a rise in the minimum wage, designed to reflect cost-of-living changes and offer better support to low-income workers.
The general hourly rate increases to $17.60, up from $17.20—a significant step for hourly earners and modern work categories like remote employees and outdoor guides.
If you’re planning your budget, reviewing payroll, or just curious about Ontario’s economic shifts, this guide breaks down all the key changes.
General Minimum Wage Increase
The core minimum wage is rising to $17.60 per hour, effective October 1, 2025, marking a 40-cent or approximately 2.3% increase compared to the previous rate of $17.20.
This is part of the province’s annual adjustment tied to the Ontario Consumer Price Index (CPI), reflecting inflation trends. For full-time workers logging 40 hours per week, this translates to around $832 more annually before taxes.
Expanded Wage Rates for Diverse Workers
This year’s update includes special rates for different worker groups:
- Students under 18 working 28 hours or less per week will see their rate rise from $16.20 to $16.60 per hour.
- Homeworkers—those performing paid work from home, including remote employees—will have their rate increased from $18.90 to $19.35 per hour.
- Hunting, fishing, and wilderness guides will get daily pay boosts:
- $88.05/day for less than five consecutive hours (up from $86.00).
- $176.15/day for five or more hours (up from $172.05).
New Wage Rates at a Glance
Here’s a breakdown of the updated rates, effective October 1, 2025:
| Worker Category | Current Rate | New Rate |
|---|---|---|
| General Minimum Wage | $17.20/hr | $17.60/hr |
| Student Minimum Wage (<18, part-time) | $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 |
Why These Updates Matter
- Addressing Inflation: Tied to the CPI, wage updates help maintain purchasing power for low-wage earners.
- Fairness for New Work Models: The higher remote-work rate acknowledges added costs like utilities and home office setup.
- Support for Youth and Part-Time Workers: Student rates reflect financial realities without losing equitable wage access.
- Improved Retention for Outdoor Guides: Daily rate increases reward roles that often involve irregular hours and travel.
Minimum Wage vs. Living Wage in Ontario
Despite the increase, Ontario’s minimum rates still fall below what many consider a living wage—the income needed to cover necessities without hardship.
The Ontario Living Wage Network in 2024 estimates the average living wage at $21.66/hour, and as high as $26/hour in Toronto, leaving a gap of nearly $4 to $8 per hour in urban areas. This highlights ongoing policy discussions on raising wages further to meet actual costs of living.
Ontario’s 2025 minimum wage update brings meaningful relief and recognition across various workforce sectors. Whether you’re a full-time, part-time, remote, or youth employee, these changes reflect ongoing economic shifts and the evolution of work.
While the increase is an important step, ongoing efforts are still needed to close the gap between minimum and living wages province-wide. Stay informed, update your payroll systems, and plan your personal finances accordingly as the new rates come into effect this October.
FAQs
When will Ontario’s new minimum wage take effect?
The increase to $17.60 per hour (and other category-specific rates) takes effect on October 1, 2025.
Who qualifies for the higher homeworker rate of $19.35?
Employees doing paid work from home—not contractors—qualify for the homeworker rate, including students in such roles.
How much will a full-time worker make annually after the general wage hike?
At 40 hours/week, the new rate yields about $35,808 per year, pre-tax—an increase of roughly $832 annually from the previous rate.