On 5 April 2022, the Ontario Minister of Labour, Training and Skills Development announced increases to the general and specialised minimum wage rates under the Employment Standards Act, 2000, S.O. 2000, c. 41 (the “ESA”).
Effective 1 October 2022, the new statutory minimum wage rates in Ontario will be:
|Employee Class||Current Minimum Wage Rate||Minimum Wage Rate Effective October 2022|
|Employees who are students under 18 years of age, if the student’s weekly hours do not exceed 28 hours or if the student is employed during a holiday||$14.10 per hour||$14.60 per hour|
|Hunting, fishing, and wilderness guides||$75.00 per day, when working less than five consecutive hours in a day
$150.05 per day, when working five or more hours in a day
|$77.60 per day, when working less than five consecutive hours in a day
$155.25 per day, when working five or more hours in a day
|Employees who are homeworkers||$16.50 per hour||$17.05 per hour|
|Any other employees (i.e., the general minimum wage rate)||$15.00 per hour||$15.50 per hour|
The adjustments to the statutory minimum wage rates reflect recent changes to the Ontario Consumer Price Index. At the end of December 2021, the Ontario Consumer Price Index was valued at 143.20, up from its valuation of 138.40 from December 2020.
Key Action Points for Human Resources and In-house Counsel
Although October 2022 is a while away, employers should begin reviewing their internal records in preparation for the new minimum wage rates. In particular, provincially regulated employers in Ontario should review their existing employment contracts and collective agreements, and take steps to ensure that employees’ pay rates will be consistent with the ESA when the statutory minimum wage rates increase in the fall. Prudent and proactive employers may also consider setting up their payroll systems in advance of 1 October 2022, to ensure that any necessary changes to compensation are processed immediately when the new minimum wage rates take effect.