As of January 1, 2022, the Ontario general minimum wage has gone up from $14.35 to $15. The Ontario government says minimum wage will continue to rise with the inflation rate. According to Premier Doug Ford, this pay bump will impact over 760,000 workers, including liquor servers who previously made $12.55 an hour.
Along with the general minimum wage, the following minimum wage rates will also be seeing an increase:
Student minimum wage in Ontario: $14.10 per hour
Hunting and fishing guides minimum wage in Ontario: $75 for less than five consecutive working hours. For guides working more than five hours will see an increase to $150.05.
Homeworkers wage in Ontario: $16.50 per hour
This raise has been a long time coming with anticipation for the last three years. In 2018 the Liberal government increased minimum wages to $14 an hour from its former $11.60. That same government promised to raise minimum wage to $15 effective 2019, but plans came to a halt when Ford stepped into office. Ford claims the increase would have been too expensive for businesses at the time. After scrapping the increase, the Progressive Conservative government said minimum wage workers would better benefit from the new Low-income Individuals and Families Tax credit instead. It was later exposed that only 38% of low-income earners would benefit, and a wage increase would have been more effective.
While many welcome a rise in wages, others speculate if this increase will be enough. According to an Ontario Living Wage Network (OLWN) report, Torontonians need to make at least $22.08 an hour to afford basic necessities. The report also covers the living wages for all 23 regions in Ontario, averaging $18.15. It’s important to note that these estimated living wages don’t include paying off debts, homeownership or emergency funds.
As the cost of living increases, the ongoing pandemic did little to help. In October 2021, inflation hit its highest since 2003 at an alarming 4.7%. Even amidst a global health crisis, affordability and cost of living dominated as key issues Canadians think the government needs to prioritize.
In addition to the minimum wage boosts, we will see some new laws and regulations enforced as part of Ontario’s Working for Workers Act.
Staycation tax credit
Beginning January 1 throughout 2022, eligible Ontarians will get a 20% personal income tax credit up to $1000 for individuals and $2000 for a family for a maximum credit of $200 or $400. Residents can file for this refundable credit when filing their 2022 personal tax returns.
Work-life balance rules
This past November, the Ontario government passed new laws to enforce better work-life balance for employees. According to the act, employers must have a written policy in place by March 1. Companies with 25 or more employees are expected to write up policies about employees’ rights regarding unplugging at the end of the day. These policies can include expectations on response times for emails and encourage employees to set out-of-office notifications when off the clock.
Non-compete rules banned
The Working for Workers Act has also ended non-compete clauses within Ontario. These clauses are typically known for preventing professionals from entering other job opportunities and higher wages at other companies. Due to the act, Ontario is the first jurisdiction in Canada and one of the first in North America to ban non-compete clauses in employment contracts.
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