Ontario Minimum Wage Rises to $17.95 on October 1, 2026: What Employers Need to Do
Ontario’s general minimum wage rises from $17.60 to $17.95 per hour on October 1, 2026. The increase is tied to the Ontario Consumer Price Index and applies to most provincially regulated employees, whether they work full-time, part-time or casual hours.
For employers, it’s a small change per hour that touches a lot of moving parts: payroll software, pay periods that straddle the effective date, salaried staff, overtime and holiday pay. Here’s what to check.
The new rates at a glance
| Category | Until September 30, 2026 | From October 1, 2026 |
|---|---|---|
| General minimum wage | $17.60/hour | $17.95/hour |
| Student minimum wage | $16.60/hour | $16.90/hour |
| Homeworkers’ minimum wage | $19.35/hour | $19.70/hour |
The student rate applies to students under 18 who work 28 hours a week or less while school is in session, or who work during a school break or summer holidays. Homeworkers are employees who do paid work in their own home.
What employers should do
1. Update pay rates for hours worked from October 1
The new rate applies to hours worked on or after October 1, not to the pay date. If a pay period runs from, say, September 25 to October 8, hours worked up to September 30 are paid at the old rate and hours from October 1 onward at the new rate. Most payroll software handles this automatically, but only if the new rate has been entered with the correct effective date.
2. Check your salaried employees
Salaried employees are still covered by minimum wage rules. Divide their pay for the period by the hours they actually worked. If the result falls below $17.95 per hour, the salary needs adjusting. This catches employers out most often with lower-paid salaried roles and employees who regularly work long weeks.
3. Review overtime and holiday pay
In most cases, overtime in Ontario is owed after 44 hours in a work week, at 1.5 times the employee’s regular rate. Higher base rates mean higher overtime rates. Public holiday pay is also calculated from recent wages, so it’s worth confirming your calculations ahead of Thanksgiving on October 12.
4. Budget for the knock-on costs
Higher wages also mean slightly higher employer CPP and EI contributions and vacation pay. For businesses with many hourly staff, such as retail, restaurants, pharmacies and clinics, these add up. It’s a good moment to revisit your payroll budget for the rest of the year.
5. Know which rules apply to you
These rates apply to provincially regulated employers. Federally regulated businesses, such as banks, airlines and telecommunications companies, follow the federal minimum wage instead. Some jobs also have special rules or exemptions under Ontario’s Employment Standards Act, 2000.
Let us handle it
Payroll changes are easy to get slightly wrong and time-consuming to fix after the fact. Our team can update your payroll setup, review salaried positions and make sure remittances stay accurate. Learn more about our payroll services in Mississauga, or call 905-279-6367 to book a free consultation.
This article provides general information and isn’t legal or tax advice. Your obligations may differ depending on your industry and employees. Contact us to discuss your specific situation.