Ontario employers should be preparing now for an upcoming minimum wage increase that will take effect later this year.
Ontario minimum wage increasing October 1, 2026
On April 1, the Ontario government has announced that the general minimum wage will increase from $17.60 to $17.95 per hour effective October 1, 2026. This annual increase is tied to Ontario’s Consumer Price Index, as required under the Employment Standards Act, 2000 (ESA), and is intended to help wages keep pace with inflation while providing predictability for employers.
At $17.95 per hour, Ontario’s general minimum wage will be the second highest among Canadian provinces, reinforcing the importance of payroll and budgeting readiness for the fall of 2026.
Different minimum wage categories still apply
Employers should remember that Ontario does not have a single universal minimum wage. The ESA establishes different minimum wage categories, depending on the type of employee and work performed. These include, among others:
- General minimum wage (applies to most employees).
- Student minimum wage (generally applies to students under 18 who meet specific conditions).
- Homeworker minimum wage (applies to employees who perform paid work in their own homes, such as remote administrative, production, service, or technical work).
*Note that students of any age working as homeworkers are entitled to the homeworker minimum wage.
Each category has its own rules and application criteria under the ESA, and misclassification can result in underpayment risk. Employers should confirm which minimum wage category applies to each role, particularly for students, remote workers, and nontraditional work arrangements.
Federal minimum wage also increased in 2026
Separately, the federal minimum wage increased to $18.15 per hour effective April 1, 2026. This rate applies to employees working in federally regulated private sector workplaces, such as banking, telecommunications, and interprovincial transportation.
Importantly, employers must pay the higher rate of the two when the applicable provincial or territorial minimum wage exceeds the federal rate.
What employers should do now
With multiple wage increases in effect or on the horizon, employers should review payroll systems, employment contracts, and budgeting assumptions well in advance of October 1, 2026.