Effective October 1, 2025, Ontario’s minimum wage will increase from $17.20 to $17.60 per hour. This change is part of the province’s annual adjustment, tied to the Ontario Consumer Price Index (CPI), which rose by 2.4% this year.
For employers, this means that any employees currently earning minimum wage will see their hourly rate rise, resulting in an annual pay increase of up to $835 for someone working 40 hours per week. With about 36% of minimum wage workers in retail trade and 24% in accommodation and food services, many businesses will be directly impacted by this adjustment.
It’s important to note that this provincial minimum wage is different from the federal minimum wage, which applies only to workers in federally regulated industries such as banking, telecommunications, and interprovincial transportation. As of April 1, 2025, the federal minimum wage is $17.75 per hour. Federally regulated employees must be paid whichever rate is higher – the federal minimum or the provincial minimum.
As a reminder, under the Employment Standards Act, Ontario’s minimum wage is reviewed annually based on CPI to ensure wages reflect the cost of living. This predictable system helps employers plan ahead while ensuring employees continue to be fairly compensated.
We encourage you to review your payroll budgets and staffing plans now to prepare for the upcoming change. If you need guidance on how this increase may affect your business, or assistance with payroll and compliance management, our team at ThryvX is here to help.
Please don’t hesitate to reach out with any questions. You can also learn more about employee rights and employer responsibilities under the ESA.
Here is an article we published last October with additional tips for transition.
