As of October 1, 2022, minimum wage rates in Ontario have increased. The general minimum wage for provincially regulated employees has increased by 50 cents from $15.00 to $15.50 per hour. This raise represents a 3.33% rise in response to rising costs and inflation. 

Generally, minimum wage requirements apply to all employees, whether they are full-time, part-time, or hourly. There are special minimum wage requirements for specific categories such as students, liquor servers, hunting, fishing and wilderness guides, and home workers. The Employment Standards Act (ESA) Guide nicely outlines all minimum wage requirements here

For employees whose pay is based wholly or partly on commission, their pay must amount to at least the minimum wage for each hour the employee has worked. 
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Soaring Inflation Rates and Deflated Wages

As inflation rates have soared in recent months, the impact has been felt by employers and employees alike. According to Statistics Canada, Canada’s inflation rate, now at 7.7%, has skyrocketed at the fastest pace in almost 40 years. This is the highest rate since 1983. 

In an ideal world, wages would keep up with rising inflation rates. Currently, this is not the case across many industries.  

Why wages can’t keep up?

The relationship between inflation, wages and business costs is circular and intertwined. Due to inflation, both the costs of living and the costs of doing business are drastically increasing, making wage increases for many businesses challenging or, in some cases, unsustainable. If a company is able to invest in higher wages, they likely have to increase the prices of their products and/or services to account for their overhead. Thus a further increase in the cost of living.
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Minimum Wage Increase in Ontario
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As of October 1, 2021, minimum wage rates in Ontario increased. The increases are tied to the 2020 Ontario Consumer Price Index under the Making Ontario Open for Business Act. The general minimum wage for provincially regulated employees has increased by 10 cents – from $14.25 per hour to $14.35 per hour. The minimum wage rates for students, liquor servers, hunting and fishing guides, homeworkers, and wilderness guides have also increased. The Ministry of Labour has published a handy chart with a list of the minimum wage rates.

What about alternative pay arrangements (non-hourly, non-salaried, room and board)?

Employers should note that these rate increases also apply to employees who earn commission – these employees’ pay must amount to at least the minimum wage for each hour the employee has worked. 
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