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As always, to make sure your business is prepared and stays in compliance, we recommend that you discuss these upcoming changes to the Ontario minimum wage with your accountant and lawyer. This article is for educational purposes and does not constitute legal, financial, or tax advice. For specific advice applicable to your business, please contact a professional
What is the minimum wage in Ontario for 2024?
Effective October 1, 2024, Ontario’s minimum hourly wage for most employees will be $17.20, a 3.9 percent increase from $16.55.
This increase is based on the Ontario Consumer Price Index (CPI) and makes the province’s minimum wage the second highest in Canada after British Columbia at $17.40 per hour.
While the new Ontario increase is $.10 less than the current federal government minimum wage, the federal minimum wage in Canada only applies to employees working in federally regulated industries, such as banking and transportation. Each province or territory sets the minimum wage for all other industries.
However, there are exceptions and other considerations. Starting October 1, 2024:
- Liquor servers must be paid $17.20. On January 1, 2022, the liquor server minimum wage became equal to the current general minimum wage.
- Hunting, fishing, and wilderness guides minimum wage is $86.00 for shifts of five hours consecutively or less.
- Wilderness guides minimum wage for five hours or more, regardless of consecutive nature, is $172.05.
- Homeworkers minimum wage is $18.90/hour.
- Students (age 17 and under) must earn $16.20/hour when working up to 28 hours/week during the school year, during a school holiday, or over summer break.
Is the minimum wage going up in Ontario?
Ontario’s minimum wage rates are subject to increase each year on October 1 adjusted annually accordingly.
How should small business owners prepare for changes?
Minimum wage increases are great news for employees but not necessarily for business owners. If you’re worried about how upcoming changes might affect your business finances:
- Audit your expenses: Check your cash flow in detail to ensure you avoid common business mistakes and create a hiring plan that you can afford. In some cases, you may find that hiring temporary workers as needed is less expensive than taking on full-time regular staff.
- Make sure you hire and keep the right employees: Replacing an employee costs a lot. You decrease the total cost associated with recruiting by retaining valuable employees. Look for candidates who have good track records, come recommended, and fit in with the company culture. Once they’re onboarded, make sure you build a relationship and provide paths for your employees to grow and thrive; it makes it more likely they’ll stay in their roles.
- Increase prices: Increasing prices is a great way to boost your cash flow and maintain profitability. Since client satisfaction is also key, be transparent and approach price increases thoughtfully. For example, only raise the prices on your most popular products and services. Start with small and gradual increases to test the waters.
- Update tech: Update tech: Consider automating certain aspects of the work and find ways to reduce production costs. According to Square’s 2024 Future of Commerce report, 100% of retail and restaurant owners reported that automation and technology have improved their businesses. Investing in small business team management software can help free up your time, better schedule your employees, and, best of all, is easy to learn.
Square is here to help you with any resources you need, so you and your business can thrive.
