Effective October 1, 2025, Ontario’s general minimum wage will increase to $17.60 per hour (up from $17.20). This annual adjustment is tied to the Consumer Price Index and affects nearly all employees covered by the Employment Standards Act, 2000 (ESA).

For employers, this increase is a timely reminder to review pay practices, budgets, and compliance processes before the fall.

Key Steps for Employers

Review Pay Rates and Classifications

• Identify affected employees. Determine which employees currently earn below the new rate and adjust wages to meet or exceed $17.60/hour effective October 1

• Check special rates. Remember that student minimum wage, homeworkers, and hunting/fishing/wilderness guides have different rates that are also adjusted annually.

Update Payroll Systems

• Ensure your payroll provider or internal system is updated before the effective date to avoid underpayments.


• Double-check overtime calculations, vacation pay, and public holiday pay — all of which are tied to regular hourly wages.

Adjust Budgets and Pricing

• Factor the higher labour costs into Q4 budgets.


• For service-based businesses, consider whether pricing or scheduling adjustments are needed to offset increased payroll expenses.

Communicate with Staff

• Inform affected employees in writing of the new wage rate.


• Use this opportunity to reinforce your commitment to fair compensation and compliance with Ontario employment standards.

Review Pay Equity and Compression Risks

• When minimum wage rises, employees just above the threshold may expect adjustments as well.


• Conduct a quick pay equity review to avoid morale issues and retain talent.

Need help updating your payroll policy or drafting employee communications? Workly Law is happy to assist.

This article is for informational purposes only and does not constitute legal advice. For guidance specific to your workplace, consult legal counsel. 

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