In part, to the 2021 Fall Economic Statement, it was recently announced that the Ontario government introduced legislation that, if passed, will increase minimum wage to $15 in the upcoming new year. This legislation will no longer exempt liquor servers from the general minimum wage. Other specialized minimum wages will also see a raise.
As of October, 2021 general minimum wage was raised by 10 cents to $14.35 per hour. This increase based on the 2020 Consumer Price Index does not accurately reflect the current inflation. Due to the pandemic, the cost of living has soared, yet wages aren’t keeping up. As part of Bill 43, Build Ontario Act (Budget Measures), 2021, if passed, will amend the Employment Standards Act 2000 and increase minimum wage. With this raise, a full-time minimum wage worker can see a rise of $1,350 in annual earnings.
While the general minimum wage applies to most employees, there are some exceptions.
Ontario Minimum Wages for Students
Student wages are currently set at $13.50 per hour. This wage applies to students under 18 years old who work 28 or fewer hours a week during the school session or during school breaks or summer holidays. If the minimum wage increase passes, working students will see an increase in pay to $14.10 an hour.
Ontario Minimum Wages for Liquor Servers
Liquor servers are another party that does not receive the general minimum wage. Currently, these employees make $12.55 per hour. This difference in pay is due to the belief that gratuity makes up the difference. Unfortunately, many of these employees’ tips are pooled and redistributed to other staff. This puts these employees at a disadvantage, and with new legislation, liquor servers are included in the general minimum wage.
Ontario Minimum Wages for Hunting and Fishing Guides
Hunting and fishing guides get paid based on blocks of time rather than per hour like most employee groups. Employees who work less than five consecutive hours in a single day earn $71.30 with a new proposed rate of $75. If an employee works for five or more hours, whether or not it’s consecutive, the pay rate is $143.55. With the increase, this will change to $150.05.
Ontario Minimum Wages for Homeworkers
Homeworkers are employees who perform paid work within their homes. These jobs can look like sewing for a clothing manufacturer, telephone soliciting, writing software or any position they can perform from their home. Students, including those under 18 years old, are entitled to homeworkers minimum wage if employed as a homeworker. As of 2021, the homeworkers wage sits at $15.80, with a proposed increase to $16.50 per hour.
Ontario Minimum Wages for Wilderness Guides
Like hunting and fishing guides, wilderness guides are also paid based on blocks of time rather than by the hour. When working less than five consecutive hours a day, the wage is $71.75 and $143.55 for more than five hours. Wilderness guides are considered employees who guide, teach or assist people while engaged in activities in wilderness environments. Activities can include but aren’t limited to:
- Dogsledding
- Hiking
- Canoeing, kayaking, rafting
- Back-country skiing and/or snowshoeing
- Horseback riding
- Rock climbing
- Wildlife viewing
- Survival training
Key information to note is hunting, or fishing guides or individuals who qualify for student wages are not included with wilderness guides.
Additional Rules and Regulations for Wages in Ontario
What’s the Overtime Rate in Ontario?
Along with the general minimum wage, employees who work overtime are entitled to 1 ½ times their rate of pay, also known as “time and a half.”
Example: For an employee that regularly earns $13.50 an hour, their overtime wages would become $20.25 (13.50 x 1.5 = 20.25). For every extra hour worked, this employee will earn $20.25.
What’s a Commission-based pay in Ontario?
Employees compensated partially or entirely by commission must receive at least the minimum wage for each hour worked.
Example: Let’s say an employee works solely on commission and is paid weekly. They earn $200 in commission after working a total of 30 hours. This employee qualifies for general minimum wage at $14.35. This wage ($14.35) times the number of hours worked (30) totals $430.50. The employer owes them the difference of their commission pay ($200) and the required wages ($430.50), totalling $230.50.
What’s the three-hour rule in Ontario?
Employees who work over three hours regularly but are required to report to work for less than three hours must be paid according to the three-hour rule. For these employees, they will either be paid:
- Three hours at their usual pay rate
OR
- The amount the employee earned for time spent plus pay equal to the employee’s typical wage for the remainder of the three hours.
Example: If an employee makes $14.35 an hour and is sent home after only two hours, they are entitled to a total of $28.70 (14.35 x 2 hours). They are also entitled to another $14.35 for the third hour bringing their total pay to $43.05.
This rule does exclude employees who have a regular shift of 3 hours or less or if the cause of the employee working less than three hours is for reasons beyond the employer’s control.
Ontario Minimum Wages Changes in 2022
Since 2020, every year, on October 1, there may be an increase to minimum wage. Increases are to come into effect on October 1 of each year and are published on or before April. If any changes occur during a pay period, the pay period will be treated as two separate periods. The employee is then entitled to the minimum wage applying to each period.
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