Ontario’s Minimum Wage is set to increase again on October 1st 2024 to a total of $17.20 per hour.
This 65cent increase is in response to the Ontario Consumer Price Index (CPI), a measure of inflation which rose by 3.9%.
Quick Facts:
- This increaase will bring Ontario to the second highest minimum wage in the Country, just behind British Columbia
- This increase will affect just under 1million workers
- These workers working 40 hours per week will see an annual pay increase of up to $1,355
- This increase is part of the Working for Workers Four Act, 2024 which provides new protections for millions of workers in Ontario
What does that mean for you?
If you are a business owner you will need to ensure that all employees making less than $17.20/hour receive the appropriate increase.
Do you need to increase everyone’s wages?
As of October 1st, you MUST ensure that employees making minimum wage are brought up to the new increased rate. It is up to you as the business owner to decide if other employees (already making $17.20 per hour or more) should also receive an increase. Here are some things to consider when making that decision:
Budget and Financial Health: Determine if your organization can afford across-the-board wage increases.
Market Competitiveness: Assess how your current wage structure compares to market rates for similar positions in your industry and region.
Employee Morale and Retention: Consider the impact of wage disparities on employee morale and retention.
Legal Requirements: Familiarize yourself with local labor laws and regulations regarding wage increases. Some jurisdictions may require employers to adjust wages proportionally when the minimum wage goes up.
Phased Approach: If an across-the-board increase is not immediately feasible, you may consider a phased approach, gradually increasing wages over time, ensuring first and foremost you increase those below the new wage by October 1st.
Consult with HR and Legal Teams: Collaborate with your human resources and legal teams, like ThryvX, to ensure that any wage increase strategy complies with employment laws and regulations.
Ultimately, the decision to offer wage increases to all other employees should be based on a thoughtful analysis of your organization’s financial situation, competitive positioning, and employee needs. It’s important to communicate any changes transparently to your workforce and to consider the long-term implications of your decision.
For more information on the wage increase click here
Need help understanding the changes or impacts to your organization Book a Meeting.
