Ontario Government Proposes to Raise Minimum Wage to $15 per hour Effective January 1, 2022
The Government of Ontario has announced that as part of the 2021 Fall Economic Statement, legislation will be introduced that, if passed, would raise the general minimum wage from $14.35 per hour to $15.00 per hour effective January 1, 2022. Currently, there is no mention in the Government’s announcement to the current annual adjustment mechanism tied to changes in the Consumer Price Index.
In addition to the proposed increase in the general minimum wage, the following additional changes are being proposed to other special minimum wage rates:
- The lower minimum wage currently in place for liquor servers would be eliminated and replaced with the general minimum wage, resulting in a proposed 19.5% increase in such minimum hourly wage rate from $12.55 per hour to $15 per hour.
- Students under the age of 18 who work 28 hours a week or less when school is in session, or who work during a school break or summer holidays, would see an increase in the applicable minimum wage from $13.50 per hour to $14.10 per hour.
- Homeworkers (those who do paid work out of their own homes for employers) would see an increase in the applicable minimum wage rate from $15.80 per hour to $16.50 per hour.
- Hunting and fishing guides would see an increase in the applicable minimum wage rate from $71.75 to $75 for working less than five consecutive hours in a day, and from $143.55 to $150.05 for working five or more hours in a day.
We are continuing to monitor these proposed changes and will provide updates here in our McCarthy Tétrault Employer Advisor blog. If you have questions about these proposed changes, or need assistance, please reach out to any member of our National Labour & Employment Team.