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Ontario’s general minimum wage will rise from $17.60 to $17.95 an hour on October 1, 2026.\u00a0<\/span>\u00a0<\/span><\/p>

The 35-cent increase reflects a roughly 1.9% change in the Ontario Consumer Price Index. Ontario rounds the <\/span>yearly minimum wage change<\/span> to the nearest five cents. The new rate will apply from October 1, 2026, to September 30, 2027. <\/span>If you run payroll in Ontario, update it to reflect the new minimum.<\/span>\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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The Increase Will Affect More Than 700,000 Ontario Workers <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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More than 700,000 Ontario workers will benefit from the increase, <\/span>according to the Ontario government<\/a><\/span>.<\/span>\u00a0<\/span><\/p>
For someone working 40 hours a week at minimum wage, the increase is an additional $14 a week before deductions. Over 52 weeks, this is $728 more in gross wages.<\/span>\u00a0<\/span><\/p>
The general rate is not the only minimum wage changing on October 1. The student minimum wage will increase from $16.60 to $16.90 an hour. The minimum wage for homeworkers will also rise to $19.70 an hour. Hunting, fishing and wilderness guides will have a daily minimum wage of $89.75 for less than 5 consecutive hours. The rate is $179.50 for 5 or more hours.<\/span>\u00a0<\/span><\/p>
The changes apply to most employees covered by <\/span>Ontario’s Employment Standards Act, 2000<\/span>.<\/span><\/a> That includes full-time, part-time and casual employees. Minimum wage rules also cover employees paid by salary, commission, piece rate, or flat rate. Specific exemptions and special rules are set out in Ontario’s Employment Standards Act, 2000.<\/span>\u00a0<\/span><\/p>
This also matters for salaried employees whose pay is close to the minimum wage. Ontario’s rules require employers to assess whether the employee’s regular wages meet the minimum wage. This assessment is based on the hours worked during the pay period.<\/span>\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Ontario Employers Need to Update Payroll for the New Rate <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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If your pay period crosses October 1, use the $17.60 rate for hours worked before the change. Use $17.95 for hours worked from October 1 onward.<\/span>\u00a0<\/span><\/p>
For example, if a biweekly pay period runs from September 28 to October 11, calculate the rates separately. Use $17.60 for hours worked from September 28 to 30. Use $17.95 for hours worked from October 1 to 11.<\/span>\u00a0<\/span><\/p>
Legend Fusions offers payroll management services in Ontario to help businesses manage these calculations. Its services include payroll processing, CRA-compliant filings, year-end reports, ROEs and T4s, employee self-service, time tracking, and payroll reporting.<\/span>\u00a0<\/span><\/p>
With the new rate taking effect on October 1, businesses should review their payroll setup. Make sure it is ready before the first affected pay period is processed.<\/span>\u00a0<\/span><\/p>
Contact Legend Fusions<\/span><\/span><\/a>\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\r\n\t\t\t\r\n\t\t\t\tReviewed by:\r\n\t\t\t\r\n\t\t\t<\/div>\r\n\t\t<\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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$\"Jeffery\"$ <\/figure>
Jeffrey Ross <\/p>
Jeffrey Ross is an experienced tax accountant focused on US-Canada cross-border taxation, with over three years in the industry, including a key role as client manager at a Canadian tax firm. He provides expertise in corporate and personal tax planning, specializing in non-resident tax, capital gains, CRA and IRS compliance, and retirement planning. Known for his personalized approach, Jeffrey is dedicated to guiding clients with clear, practical advice tailored to complex tax scenarios, aligned with the evolving tax laws. <\/p><\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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