Ontario Minimum Wage Explained

Minimum wage changes in Ontario always generate stress and confusion. If you run a small business, shifts in wage rates can impact your payroll overnight. If you’re an employee, every increase matters to your budget — and you may be wondering if you’re actually being paid what the law requires.

This guide from Vanguard Law, an Ontario employment law firm, breaks down the current minimum wage in Ontario, who it applies to, and what to do if there’s a shortfall. It’s written in plain language so both workers and employers can understand their rights and obligations.

1. What is the minimum wage in Ontario?

As of October 1, 2025, Ontario’s minimum wage rates are:

General minimum wage
$17.60 per hour
Applies to most employees in Ontario.

Student minimum wage
$16.60 per hour
Applies to students under 18 who work 28 hours/week or less during the school year, or who work during a school break or summer holidays.

Homeworkers
$19.35 per hour
Applies to employees who do paid work from their own home (not independent contractors).

Hunting, fishing & wilderness guides
$88.05 per day – for working fewer than five consecutive hours in a day.
$176.15 per day – for working five or more hours in a day, whether or not the hours are consecutive.

These rates are set under Ontario’s Employment Standards Act, 2000 (ESA) and are reviewed every year, with most changes taking effect on October 1 and tied to the Ontario Consumer Price Index (CPI).

2. Who does Ontario’s minimum wage apply to?

In most cases, if you’re working in Ontario for a provincially regulated employer, you’re entitled to at least the applicable minimum wage.

That typically includes:

• Full-time employees

• Part-time employees

• Casual or seasonal workers

• Employees paid hourly, salary, commission, or piece rate

Employees who are not covered by Ontario’s minimum wage

Minimum wage under the Ontario ESA generally does not apply to:

• Workers in federally regulated industries (for example, banks, airlines, interprovincial trucking, telecom). These employees are usually covered by the federal minimum wage, which is a separate rate.

• Certain jobs or industries with special rules or exemptions, such as specific co-op / work experience students, some trainees, and a few industry-specific roles.

If you’re not sure whether you’re provincially or federally regulated — or which minimum wage applies — speak with an Ontario employment lawyer at Vanguard Law before assuming your employer is compliant.

3. General vs. special minimum wages in Ontario

Ontario doesn’t just have one minimum wage. There are different categories, and applying the wrong one is a common mistake.

3.1 General minimum wage – $17.60/hour

The general minimum wage is the default. It applies to most adult employees in Ontario who don’t fall into a special category.

Key points:

• Applies whether you’re paid hourly, weekly, monthly, or on commission.

• Applies to non-union and unionized workers (subject to collective agreements).

• Applies to tipped employees, including liquor servers – tips cannot be used to top up a wage that’s below the minimum.

3.2 Student minimum wage – $16.60/hour

The student minimum wage is lower than the general rate, but it only applies in very specific circumstances:

• You are under 18; and

• You work 28 hours/week or less when school is in session; or

• You work during a school break or summer holidays.

If any of these don’t apply (for example, a 17-year-old working 35 hours/week during the school year), you may be entitled to the general minimum wage, not the student rate.

3.3 Homeworkers – $19.35/hour

“Homeworkers” are employees who perform paid work from their own home for an employer — for example:

• Sewing or manufacturing work

• Remote customer service

• Data entry or software work

Because homeworkers often pay their own overhead and may have fewer protections, Ontario sets their minimum wage higher than the general rate.

Important: If you’re a student and also a homeworker, the homeworker rate applies (not the student rate).

3.4 Hunting, fishing & wilderness guides – day rates

Guides are paid based on blocks of time instead of an hourly rate:

• $88.05/day for shifts of less than five consecutive hours

• $176.15/day for shifts of five hours or more in a day, whether or not the hours are consecutive Hicks Morley+1

This category often catches employers off guard, especially in outdoor tourism and camp settings.

4. Does minimum wage apply to salaried, commissioned, and piece-rate employees?

Yes. Minimum wage is not just for hourly workers.

4.1 Salaried employees

If you receive a fixed annual or weekly salary, the law still requires that your pay works out to at least the minimum wage for every hour you actually work in a pay period.

For example:

• You earn $36,608/year (about $704/week).

• You regularly work 44 hours/week.

• Your effective hourly rate is $16/hour ($704 ÷ 44).

If the general minimum wage is $17.60/hour, this salary would not meet Ontario’s minimum wage requirement, and your pay may need to be adjusted upward.

4.2 Commission-based employees

If you’re paid partly or fully by commission (like some sales roles), the total you earn in a pay period must average out to at least minimum wage for each hour worked.

If one pay period falls below the minimum, your employer usually has to top you up.

4.3 Piece-rate employees

If you’re paid by the unit (for example, per item produced or per delivery), the same rule applies: your total pay in the pay period must work out to at least minimum wage per hour.

Some industries have special rules, but employers cannot simply set a piece rate so low that an average worker can’t realistically earn minimum wage.

5. What about tips, bonuses, room & board, or deductions?

This is where many employers accidentally (or intentionally) fall below the law.

5.1 Tips and gratuities

In Ontario:

• Tips belong to the employee.

• Employers cannot count tips toward minimum wage.

• A server being paid $14/hour plus tips is still underpaid if the general minimum wage is $17.60/hour.

5.2 Bonuses and commissions

Performance bonuses and commissions can count toward overall pay in a pay period — but only to the extent they actually bring the employee up to at least the minimum wage for every hour worked. If they don’t, a top-up is required.

5.3 Deductions for uniforms, breakage, or shortages

Employers often get into trouble when they:

• Deduct for required uniforms without consent;

• Deduct for mistakes, cash shortages, or broken equipment; or

• Take other deductions that push an employee’s earnings below minimum wage.

Some deductions are prohibited entirely; others require written, informed consent and must not drive wages under the statutory minimum. If you’re dealing with aggressive deductions, get legal advice.

6. Common minimum wage mistakes we see at Vanguard Law

At Vanguard Law, we regularly review termination packages, unpaid wage claims, and workplace disputes where minimum wage is part of the problem. Here are patterns we see again and again:

1. Misclassifying employees as “independent contractors”
   True independent contractors are not covered by the ESA minimum wage — but many workers labeled “contractors” are legally employees. Misclassification can lead to minimum wage claims, overtime, vacation pay, and more.

2. Using the student rate incorrectly
   Employers may pay the student minimum wage to:

   • Students over 18; or

   • Students under 18 working more than 28 hours/week during the school year.
     In both cases, the general rate usually applies.

3. Ignoring annual October increases
   Some employers forget (or choose not) to update wage grids and salary bands each October 1 when the new rates kick in, leaving long-time workers stuck at last year’s minimum.

4. Underpaying remote workers and homeworkers
   Paying homeworkers the general minimum wage instead of the higher homeworker rate is a frequent ESA breach.

5. Not counting all hours worked
   Examples:

   • Mandatory training or meetings off the regular schedule

   • Time spent opening or closing the workplace

   • Certain travel time between job sites
     If the work is required, those hours usually count — and must meet minimum wage.

7. What if you’re paid less than minimum wage?

If you suspect you’re not receiving Ontario’s minimum wage, here are practical steps:

1. Document everything

   • Keep your pay stubs, timesheets, schedules, and any written communication about pay.

   • Note days and hours worked, including extra training or off-the-clock tasks.

2. Compare your pay to the current rates

   • Check your hourly rate (or your salary divided by total hours worked) against the current Ontario minimum wage table above.

   • Make sure the correct category is being used (student vs. general vs. homeworker).

3. Raise the issue internally (when safe)
   Many employers simply haven’t updated their payroll and will correct the problem once it’s pointed out. Be professional and keep a written record of any complaint.

4. Consider an ESA claim or legal advice

   • You can file a complaint with the Ministry of Labour under the Employment Standards Act.

   • Or you can speak with an Ontario employment lawyer to review your broader rights, which may include unpaid overtime, public holiday pay, vacation pay, or even constructive dismissal in serious cases.

Vanguard Law acts for employees across Ontario who are dealing with unpaid wages, underpayment, and misclassification. We can help you understand your options and decide whether to negotiate, complain to the Ministry, or start a legal claim.

8. Minimum wage compliance for Ontario employers

If you’re an employer in Ontario, minimum wage compliance is the floor, not the ceiling. But failing to meet that floor can lead to:

• ESA complaints and Ministry of Labour investigations

• Orders to pay back wages (often for multiple years)

• Potential administrative penalties

• Reputational damage and morale problems

Quick compliance checklist

• ☐ Are all employees earning at least the correct minimum wage for their category as of October 1, 2025?

• ☐ Are you treating “independent contractors” correctly, or are some effectively employees?

• ☐ Have you updated both hourly rates and salaries to reflect the new minimums?

• ☐ Are you excluding tips when checking minimum wage compliance?

• ☐ Are homeworkers paid at least $19.35/hour?

• ☐ Are your payroll and HR systems set up to adjust automatically with annual October increases?

Vanguard Law also advises fair-minded employers who want to “get it right” — updating contracts, policies, and pay practices to meet ESA standards and reduce litigation risk.

9. FAQs: Ontario minimum wage in 2025

Q1. What is the minimum wage in Ontario right now?

As of October 1, 2025, the general minimum wage in Ontario is $17.60/hour.

Q2. How often does Ontario minimum wage increase?

Under the ESA, Ontario’s minimum wage is generally reviewed every year, with changes taking effect on October 1, based on the Ontario Consumer Price Index (CPI).

Q3. Does Ontario minimum wage apply to salaried employees?

Yes. If your salary divided by the actual hours worked in a pay period works out to less than the applicable minimum wage, there may be a violation.

Q4. Can tips count toward minimum wage?

No. Tips and gratuities are on top of minimum wage in Ontario. Employers cannot use tips to justify paying less than the statutory minimum.

Q5. I’m under 18 and working 30 hours/week during the school year. Which wage applies?

In most cases, you should receive the general minimum wage, not the student rate, because you work more than 28 hours/week while school is in session.

Q6. I work from home as an “independent contractor” but my hours and pay are controlled by the company. Does minimum wage apply?

It might. If you are misclassified and legally considered an employee (despite the “contractor” label), you may be entitled to at least the homeworker minimum wage plus other ESA protections. Speak with an employment lawyer to assess your specific situation.

10. How Vanguard Law can help

Vanguard Law is an Ontario employment law firm that represents both:

• Employees who have been underpaid, misclassified, or terminated; and

• Employers who want to design compliant pay structures and avoid ESA claims.

We can:

• Review your wage practices or pay stubs against the latest Ontario minimum wage rules

• Identify issues around unpaid wages, overtime, vacation pay, and misclassification

• Negotiate back-pay or settlements with employers

• Represent you in ESA proceedings or civil claims when necessary

If you’re worried about whether you’re being paid fairly — or whether your business is fully compliant with Ontario’s minimum wage laws — book a confidential consultation with Vanguard Law and get clear, practical advice about your next steps.