October 3, 2022
On October 1, 2022 the minimum wage for employers in Ontario was raised. This is consistent with government policy:
“On October 1 of every year starting in 2022, the minimum wage rates may increase annually. The new rates to come into effect on October 1 will be published on or before April 1 of every year, beginning in 2022.”
The table of new minimum wage rates by job category can be found on this page of the government of Ontario website:
https://www.ontario.ca/document/your-guide-employment-standards-act-0/minimum-wage
The page includes a calculation example for the General minimum wage, which is now set at $15.50 per hour and is the rate that applies to most employees. Compliance with the minimum wage requirements is determined on a pay period basis.
Calculation example
One week, Julia works 38 hours. She is paid on a weekly basis. The minimum wage applicable to Julia is $15.50 per hour. Since compliance with the minimum wage requirements is based on pay periods, Julia must be paid at least $589.00 (38 hours × $15.50 per hour = $589.00) in this work week (prior to deductions). (Note that eating periods are not included when counting how many hours an employee works in a week).
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, flat rate or salary. The page also includes calculation examples for employees who earn commission and other job categories.
For your own calculations you may wish to use the government’s online interactive Employment Standards Self-Service Tool. You can input specifics such as working hours and pay periods and overtime eligibility to check compliance with the minimum wage rules.
Some employees have jobs that are exempt from the minimum wage provisions of the Employment Standards Act. Information on these job categories can be found at Industries and jobs with Employment Standards Act exemptions and/or special rules .
As an aside, all of these web pages are found on the government’s Guide to the Employment Standards Act , which you may find helpful at other times for calculating public holiday pay, termination/severance pay or for general guidance on employer and employee rights and obligations under the ESA.
I hope you find this information helpful.Please contact me with any questions you may have or for assistance working through your staffing matters.