New Minimum Wage for Ontario starting October 1, 2024
Frank Sadik Azzawe, CPBA
Founder | MMS Accounting | CFO Advisor | Empowering your business with expert accounting & tax consulting. Your trusted partner and business advisor, committed to building lasting relationships and driving your success.
Background:
The minimum wage in Ontario will increase on October 1, 2024, by $0.65, which brings the new rate to $17.20 an hour.
The minimum wage is the lowest wage rate an employer can pay an employee. Most employees are eligible for minimum wage, whether they are full-time, part-time, casual employees, or are paid an hourly rate, commission, piece rate or salary. Some employees have jobs that are exempt from the minimum wage provisions or the Ontario Employment Standards Act.
Compliance with the minimum wage requirements is determined on a pay period basis.
General Minimum Wage:
The general minimum rate applies to most employees.
The new rate starting October 1, 2024, is $17.20 up from $16.55 an hour.
Student minimum wage:
This rate applies to students under the age of 18 who work 28 hours a week or less when school is in session, or work during a school break or summer holidays.
The rate effective October 1, 2024, is $16.20 up from $15.60 per hour.
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Liquor servers minimum wage:
This hourly rate applies to employees who, as a regular part of their employment, serve liquor directly to customers, guests, members, or patrons in licensed premises and who regularly receive tips or other gratuities as a part of their work.
“Licensed premises” are businesses for which a license or permit has been issued under the Liquor Licence Act.
The rate as of October 1, 2024, will be the same as the general minimum wage of $17.20 per hour.
Homeworkers minimum wage:
Homeworkers are employees who do paid work in their own homes. For example, they may sew clothes for a clothing manufacturer, answer telephone calls for a call centre, or write software for a high-tech company. Note that students of any age who are employed as homeworkers must be paid the homeworker’s minimum wage.
The rate effective October 1, 2024, is $18.90 up from $18.20 per hour.
Commission Employees:
If an employee’s pay is based completely or partly on commission, it must amount to at least the minimum wage for each hour the employee has worked.
For further information please contact our office at (647) 749-8798 or [email protected]