Ontario’s minimum wage has risen to $17.60 per hour as of Oct. 1, an increase meant to help workers keep up with the rising cost of living. But while employees are welcoming a boost to their paycheques, some say the increase still falls short of what’s needed to make ends meet.
The increase represents a 40-cent jump from the previous rate of $17.20 per hour. The provincial government says it adjusts the wage annually based on the Consumer Price Index (CPI) to reflect inflation.
To many, the move is a step in the right direction, but the gap between minimum wage and what’s considered a livable wage continues to grow. Across Ontario, many minimum wage workers are working in retail, hospitality, food service and caregiving jobs.
Isabelle McChesney, a Guelph Humber Student who works at Lone Star Texas Grill, says she is happy to hear about the wage increase, but it is still not enough to survive.
“I don't think it'll make that much of a difference. Just because I feel like whenever the minimum wage does increase, it's just because the price of living increases as well. So it's just going to be like the same thing over again,” McChesney said.
For workers in cities such as Toronto, where housing and food costs remain high, the new rate still lags behind the living wage. The Ontario Living Wage Network estimates workers in the GTA need $26 an hour to cover necessities.
Businesses have raised concerns about higher payroll costs at a time when many small businesses are still recovering from the pandemic and dealing with inflation.
The minimum wage increased $3.60 to $17.60 from $14 per hour in 2018, setting Ontario's provincial minimum wage as one of the highest in Canada. Alberta is the only province that has not increased its $15 per hour minimum wage, now the lowest in Canada.
The Ontario Ministry of Labour says the annual adjustment ensures fairness for workers while giving businesses time to prepare for changes.
In a news release, the Ontario Ministry of Labour said the 40-cent increase is set to help workers deal with the rising cost of living. They also noted that someone making minimum wage full-time will see an increase of about $800 in their annual income.
As the increase takes effect, workers, businesses, and policymakers remain divided over whether $17.20 an hour is enough to ensure financial security in Canada’s most populous province.
