Ontario Minimum Wage to Rise in October 2025 – What Workers and Employers Need to Know

Starting October 1, 2025, Ontario will increase the general minimum wage from $17.20 to $17.60 per hour. This 40-cent boost—about a 2.3% increase—is designed to help workers keep up with rising living costs and is part of the province’s annual wage adjustment linked to inflation.

This update will benefit thousands of workers across industries such as retail, manufacturing, hospitality, and services. It will also bring higher pay rates for students, remote workers, and outdoor guides.

General Minimum Wage Increase

From October 1, 2025, Ontario’s standard minimum wage will be $17.60 per hour, up from $17.20. For a full-time employee working 40 hours a week, this means an additional $832 per year before taxes.

The increase continues Ontario’s annual wage adjustments based on the Consumer Price Index (CPI), which tracks the cost of essentials like housing, food, and transportation. This helps ensure wages rise in line with inflation.

Minimum Wage for Students

Students under 18 who work part-time (28 hours or less per week during school, or any hours during breaks) will see their hourly wage increase from $16.20 to $16.60.

This update covers both high school and post-secondary students, aiming to provide fair pay while recognizing that most students have lower financial responsibilities. Remote-working students qualify for the higher homeworker rate.

Higher Pay for Remote Workers (Homeworkers)

Ontario’s “homeworker” category includes people who work from home, such as virtual assistants, freelancers, and remote customer service agents.

From October 1, 2025, the minimum wage for homeworkers will rise from $18.90 to $19.35 per hour. This accounts for the extra costs of working from home, such as utilities and equipment.

Specialized Rates for Hunting, Fishing, and Wilderness Guides

Outdoor guides in Ontario are paid daily rates rather than hourly wages. From October 1, 2025, the new rates will be:

• Less than five consecutive hours: $88.05 per day (up from $86)
• Five or more hours: $176.15 per day (up from $172.05)

These increases help offset travel, equipment, and seasonal expenses in remote areas.

How the New Wage Compares to Ontario’s Living Wage

While the increase offers some relief, it still falls short of living wage standards. The Ontario Living Wage Network estimates the provincial average living wage at $21.66 per hour, leaving the new $17.60 rate $4.06 below what’s needed for a basic standard of living without financial strain.

In the Greater Toronto Area, the gap is even wider, with the living wage set at $26.00 per hour—$8.40 more than the new minimum wage.

2024 Living Wage Examples:

• Greater Toronto Area: $26.00
• Ottawa: $22.80
• Hamilton: $21.30
• Northern Ontario: $20.30
• Southwest Ontario: $19.85
  
  

These figures show that many workers—especially in high-cost cities—will still face challenges covering rent, groceries, and other essentials.

Final Thoughts

Ontario’s 2025 minimum wage increase is a positive step toward helping workers manage rising living expenses. However, it’s clear that the gap between the minimum wage and the living wage remains significant.

Employers now have time to adjust budgets before October 1, 2025, while workers can plan for the change. Whether this adjustment will lead to broader reforms in the future remains to be seen.