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FinanceFebruary 3, 2022by Kelvin Lee

2022 Minimum Wage Increase in Ontario: All You Need to Know

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The minimum wage in Ontario increased from January 1, 2022. The general minimum wage in Ontario is now $15 per hour. Previously, the minimum wage in Ontario was $14.35 per hour. The new general minimum wage applies to bartenders and alcohol servers as well. The special minimum wages for students under 18, homeworkers and hunting, fishing and wilderness guides have also increased.

What is minimum wage?

Minimum wage is the lowest wage an employer can legally pay their employee. The employer is free to pay more but they cannot pay less than the minimum wage outlined in the Employment Standards Act (ESA).

Full-time, part-time, casual employees or those paid an hourly rate, commission, piece rate, flat rate or salary are eligible for minimum wage. If a worker’s pay is based entirely or partly on commission, it must amount to at least the minimum wage for each hour the employee has worked.

However, some industries are exempt from the minimum wage provisions of the ESA.

Does the $15 minimum wage apply to all jobs in Ontario?

No. Besides the general minimum wage, there is a different minimum wage for students, hunting and fishing guides, homeworkers, and wilderness guides.

The specialized minimum wages also changed on January 1, 2022. The new rates are:

Student minimum wage: $14.10 per hour

Hunting and fishing and wilderness guides minimum wage: $75 (For working less than five consecutive hours in a day)

$150.05 (For working five or more hours in a day whether or not the hours are consecutive)

Homeworkers wage: $16.50 per hour

What are employers expected to do?

Employers in Ontario should pay their minimum wage workers the increased general ($15 per hour) and specialized minimum wages from January 1, 2022.

Ontario minimum wage changes

On October 1 every year, the minimum wage rates may increase. The new rates that would apply from October 1 would be announced on or before April 1 of every year.

The current increase of 65 cents to the general minimum wage in Ontario will be in effect from January 1, 2022, till September 30, 2022.

If a change to the minimum wage rate comes into effect partway through an employee’s pay period, their pay period will be treated as if it were two separate pay periods. The employee will be entitled to at least the minimum wage that applies in each of those periods.

Do you have questions about the minimum wage increase?

Our experts can help you with any questions related to employee pay and assist you with any HR, health and safety or employment advice you may need.

As a trusted HR and health & safety consulting company, Peninsula serves over 4,500 small businesses across Canada. Peninsula’s clients receive ongoing updates of their workplace documentation and policies as legislation changes. They also benefit from 24/7 employer HR advice and are supported by legal assistance.

To learn more about how our services can benefit your business, call an expert today at 1 (833) 247-3652.