Increased Minimum Wage in Ontario and more Canadian Provinces
As of October 1, 2024, the Minimum Wage in Ontario and more Canadian Provinces has officially risen, the four Canadian provinces: Ontario, Manitoba, Saskatchewan, and Prince Edward Island. These changes are part of a broader effort to provide workers with more fair compensation in light of inflation and increased living costs. This article takes a closer look at the new wage levels in these provinces and examines how these changes fit into the broader landscape of minimum wage adjustments across Canada.
Background on Minimum Wage Changes Across Canada
Over the past year, several provinces and territories have adjusted their minimum wage rates. In British Columbia, a wage hike was implemented on June 1, 2024, while Quebec made similar changes on May 1, 2024. Earlier, on April 1, 2024, the federal minimum wage, which applies to federally regulated industries, increased to $17.30 per hour.
The minimum wage represents the lowest hourly rate that employers can legally pay their workers, regardless of age or hours worked. Paying employees less than this rate is illegal under Canadian law. Let’s take a closer look at the new wage rates in Ontario, Manitoba, Saskatchewan, and Prince Edward Island.
Ontario: New Minimum Wage of $17.20 per Hour
As of October 1, 2024, Ontario’s minimum wage is now $17.20 per hour, a $0.65 increase from the previous rate of $16.55. This marks the second consecutive year of wage increases in Ontario, following an adjustment in 2023.
Breakdown of Ontario’s Wage Increases:
- General minimum wage: $17.20 per hour (up from $16.55).
- Students under 18 (working up to 28 hours per week): $16.20 per hour (up from $15.60).
- Home-based workers: $18.90 per hour (up from $18.20).
- Hunting, fishing, and wilderness guides: $82.85 per day for less than five hours (previously $77.60) and $165.75 per day for five or more hours (previously $155.25).
Despite the raise, some experts, including the Ontario Living Wage Network, argue that the new wage still falls short of covering the actual cost of living in many parts of Ontario. In some areas, such as the Greater Toronto Area (GTA), a “living wage” is estimated to be more than $25 per hour, prompting continued calls for a minimum wage increase to at least $20 per hour.
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Manitoba: New Minimum Wage of $15.80 per Hour
Manitoba has also raised its minimum wage, which now sits at $15.80 per hour as of October 1, 2024. This increase of $0.50 from the previous wage of $15.30 follows two major hikes in 2023, when the wage went from $13.50 to $15.30.
The adjustments in Manitoba are tied to the Consumer Price Index (CPI), which is a measure of inflation. Further increases are planned, with the next adjustment scheduled for October 1, 2025, ensuring that wages keep pace with living costs.
Saskatchewan: New Minimum Wage of $15 per Hour
Workers in Saskatchewan now earn a minimum of $15 per hour, up from the previous $14.00. This $1.00 increase follows a wage hike just a year ago when the rate rose from $13.00 to $14.00 per hour on October 1, 2023.
Saskatchewan’s approach to raising the minimum wage demonstrates a commitment to gradually align wages with the province’s cost of living. With this increase, Saskatchewan aims to ensure fairer wages for its workers, even as advocates continue to push for further improvements to match the increasing expenses many households face.
Prince Edward Island: New Minimum Wage of $16 per Hour
Prince Edward Island has increased its minimum wage to $16.00 per hour as of October 1, 2024, marking a rise from the previous rate of $15.40. This increase follows an earlier adjustment in April 2024, when the wage was raised from $15.00 to $15.40.
PEI’s steady approach to increasing its minimum wage reflects its efforts to adjust to inflation and the changing economic climate. As one of Canada’s smallest provinces, PEI has consistently made sure its workers are better compensated, keeping up with rising living costs and ensuring fairer wages.
Alberta: No Wage Increase Since 2018
Alberta remains the only Canadian province that hasn’t increased its minimum wage since 2018. Currently set at $15.00 per hour, workers and labour groups have been urging the government for an adjustment that reflects the rising cost of living in the province.
With no upcoming increases scheduled, many are questioning whether Alberta’s wage rate is sustainable in the face of increasing inflation and the higher wages seen in other provinces.
The minimum wage increases on October 1, 2024, in Ontario, Manitoba, Saskatchewan, and Prince Edward Island represent significant steps toward ensuring fairer wages for Canadian workers. However, as living costs continue to rise, particularly in high-cost regions like the GTA and Vancouver, many workers and advocacy groups are pushing for further wage hikes to ensure minimum wages reflect the realities of modern living expenses.
By staying informed about these wage changes, employers and employees alike can better navigate the evolving labour landscape in Canada. Additionally, keeping an eye on future wage adjustments ensures compliance and fairness in compensation across all provinces and territories.
