Knowing the minimum wage is of key importance for employees and employers alike. Employees want to know it to determine if a job is worth applying for, if they are being underpaid, and if their employer will have to increase their pay. This is true whether the employee is a student who just started working, an experienced employee with years of service under their belt, or someone approaching retirement.
Employers likewise need to know the minimum wage so that they appropriately compensate all employees for their work and so they do not run afoul of employment standards legislation. Employers also need to know the date that the minimum wage changes, so that they can be ready to increase the pay rate of eligible employees.
What is the minimum wage?
The minimum wage is the lowest hourly wage that an employer can legally pay their employee. Employers are free to pay their employees more, but the law requires that employees cannot be paid less than the minimum. The minimum wage applies whether an employee is part- or full-time, paid an hour rate, commission, piece rate, flat rate, or a salary. However, some industries and professions are exempt from the minimum wage provisions. All of these categories are further discussed below.
The minimum wage entitlements and exemptions in Ontario are set out in the Employment Standards Act, 2000, SO 2000, c 41 (“ESA”) and its regulations. If your employer refuses to pay you at the minimum wage, you should contact us immediately.
What is the minimum wage in Ontario in 2024?
General Minimum Wage Rate
On October 1, 2024, the general minimum wage which applies to most employees in Ontario will increase from $16.55 to $17.20 per hour.
On the same day, the minimum wage will increase for specific categories of employees referred to below entitled to a “special minimum wage rate”.
Students
The minimum wage for students under the age of 18, who work 28 hours per week or less when school is in session or who work during a school break or summer holidays, will increase from $15.60 to $16.20 per hour.
Liquor Servers
The special rate for liquor servers in Ontario was eliminated on 1 January 2022. Employees previously falling into this category are subject to the general minimum wage of $17.20 per hour, as set out above.
Homeworkers
Employees who do paid work in their own homes have also seen an increase in their wages from $18.20 to $18.90 per hour. However, note that students of any age, including those under the age of 18 years, who are employed as homeworkers must be paid the homeworker’s minimum wage.
Hunting, Fishing and, Wilderness Guides
The minimum wage for hunting, fishing, and/or wilderness guides is determined per block of time worked, rather than per hour. Their minimum daily rate for working less than five consecutive hours in a day will increase from $82.85 to $86.00. Their minimum daily rate for working five or more hours in a day, whether the hours are consecutive or not, will increase from $165.75 to $172.05.
How is the minimum wage in Ontario in 2024 calculated for a class of employees?
Since October 1, 2020, the minimum wage in Ontario has been calculated based on annual inflation. This calculation is set out in s. 23.1(4) of the ESA.
Is the minimum wage in Ontario in 2024 still applicable to those who earn commission, a flat rate, or a piece rate salary?
Unless exempt under the ESA, for employees whose pay is based entirely or partly on commission, on a flat rate, or on a piece rate, the employee’s pay must amount to at least the minimum wage for each hour worked.
Who is exempt from the statutory minimum wage provisions under the ESA?
Pursuant to O. Reg 285/01, the following classes of employees are exempt from the minimum wage under the ESA:
- Chiropodists and chiropody students;
- Chiropractors and chiropractic students;
- Dentists and dentistry students;
- Massage therapists and massage therapy students;
- Naturopaths and naturopathy students;
- Optometrists and optometry students;
- Pharmacists and pharmacy students;
- Physicians, surgeons and medical students;
- Physiotherapists and physiotherapy students;
- Psychologists and psychology students;
- Veterinarians and veterinary students;
- Commissioned travelling salespersons;
- Real estate salespersons and brokers;
- Certain farm employees;
- Near farmers;
- Landscape gardeners;
- Fishers;
- Architects and architecture students;
- Engineers and engineering students;
- Lawyers and articling students;
- Public accountants and public accountancy students;
- Surveyors and surveying students;
- Teachers and students training to be teachers;
- Residential building superintendents, janitors and caretakers; and
- Employees not covered by the ESA.
Residential healthcare workers are not entitled to the general minimum wage rate; instead, they are entitled to a regular rate of pay that equals at least the minimum wage rate for the lesser of the number of actual hours worked or 12 hours.
Fruit, vegetable, and tobacco harvesters can be paid less than minimum wage if they are paid on a piece-work basis and the rate is high enough that they could earn at least minimum wage with reasonable effort, or their employer provides them with room and board and deducts the costs for their room and board from their pay, not more than the maximum amounts set out in O. Reg. 285/01.
Homecare workers are entitled to be paid minimum wage for no more than 12 hours per day.
For more information on minimum wage or minimum employment standards in Ontario, please contact our firm.
At Levitt LLP, we specialize in guiding employees through their rights and entitlements under the Ontario Employment Standards Act. Our experienced team is committed to helping you understand any questions that you may have about employee compensation. Contact us for a consultation and take the first step toward protecting your rights and entitlements.
Please note that this article is only to be used as general information and it does not constitute legal advice. We encourage employees and employers to contact Levitt LLP directly to understand provincial employment standards better and seek legal advice to their questions.