Minimum Wage Increases in Ontario, PEI, Manitoba, and Saskatchewan Effective October 1
Several provinces in Canada, including Ontario, Prince Edward Island (PEI), Manitoba, and Saskatchewan, have raised the minimum hourly wage for workers as of October 1. These wage hikes are generally incremental and linked to inflation. For instance, Ontario has increased its minimum wage from CAD 16.55 to CAD 17.20 per hour.
The earnings of a person earning minimum wage depend primarily on the number of hours they work each week. Data from Statistics Canada for 2023 shows that a full-time worker in Ontario typically works 39.3 hours a week. Assuming all hours are paid, this would mean a gross weekly income of CAD 675.96 before taxes and deductions for someone on minimum wage.
In Ontario, most employers issue pay on a bi-weekly basis. On average, a full-time minimum wage worker would gross about CAD 1,351.92 every two weeks. A part-time employee, naturally, would receive a smaller amount.
Over the course of 26 pay periods in a year (52 weeks divided by two), a minimum wage worker can expect to earn approximately CAD 35,149.92 annually in gross income. However, after accounting for taxes and deductions, the take-home pay is significantly lower. Using Wealthsimple’s tax calculator, a person earning this salary in Ontario would net around CAD 29,026 annually, assuming no additional income or investments.
Can You Live on Minimum Wage in Ontario?
This is a critical question for many new immigrants who arrive in Canada without a job offer and need to find work quickly to sustain themselves. Some may also need to show proof of income when seeking accommodation.
Living Costs for Newcomers in Ontario
According to census data from 2021, 46.6% of Toronto’s population is made up of immigrants for Study in Canada, making it the city in Canada with the highest number of newcomers. When newcomers first arrive, many choose to rent while they save up to buy a home.
To provide a sense of the cost of living, here is an estimate of monthly expenses for a single person living alone in Toronto, based on data from various sources. Prices can vary depending on the location and individual circumstances.
- Average rent for a one-bedroom apartment: CAD 2,452 (TRREB, September 2024)
- Monthly grocery costs for one person: CAD 526.50 (Numbeo)
- Utilities (electricity, heating, water, etc.): CAD 160.44 (Numbeo)
- Phone plan: CAD 56.20 (Numbeo)
- Internet: CAD 69.70 (Numbeo)
- Public transport: CAD 3.30 per trip or CAD 143 for a monthly pass (TTC)
These essential living expenses total around CAD 3,407.84 per month, or CAD 40,894.08 annually. This is over CAD 5,000 higher than the gross annual income of a full-time minimum wage worker, and more than CAD 11,000 higher than their net pay.
To manage these costs, newcomers can explore cost-cutting options like shared housing, taking advantage of grocery discounts, choosing more affordable phone and internet plans, or walking instead of using public transportation.
Minimum Wage Jobs and Immigrants
Many immigrants, particularly those awaiting the recognition of their foreign credentials, find themselves in minimum wage jobs temporarily. According to government statistics, 20% of all occupations in Canada are regulated, meaning they require specific licenses or certifications to work.
Each province has its own regulatory bodies for these professions, so there is no national standard for how long it takes for foreign credentials to be recognised. While waiting for their qualifications to be approved, many skilled newcomers work in jobs outside their area of expertise, often earning minimum wage or slightly more.
A 2023 report from Statistics Canada also revealed that between 2001 and 2021, there has been an increase in the participation of immigrants in low-skilled jobs. These positions, once typically filled by Canadian-born workers, are now increasingly held by immigrants and temporary foreign workers (TFWs).
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