September 19, 2025 | 01:09 pm
TEMPO.CO, Jakarta - This October, workers in Ontario are expecting a minimum wage hike. Whether in food service, retail, or other industries, this news update is certainly impacts many.
The increase from $17.20 to $17.60 per hour has, however, drawn mixed reactions, most of which leaning toward the negative. Many experts argue that despite Ontario having the second-highest provincial minimum wage in Canada, this raise falls short of meeting the province’s rising living costs.
Ontario Minimum Wage 2025 Increase
To support businesses and workers, the Ontario government reviews its minimum wage annually. This October’s adjusment, announced on news.ontario.ca, will result in a wage increase.
For employees working 40 hours per week, this translates to an estimated $835 boost in annual earnings. Reflecting this adjustment, the hourly rate is set to rise from $17.20 to $17.60.
Effective October 1, 2025, the decision is guided by the Employment Standards Act, which links wage increases to the Ontario Consumer Price Index (CPI). The CPI reflects a 2.4% inflation rate, representing changes in prices faced by Ontario consumers.
How Does the Minimum Wage Compare to the Cost of Living?
According to CBC, in an interview with Craig Pickthorne, director of communications for the Ontario Living Wage Network (OLWN), the recent increase in Ontario's minimum wage is far from sufficient to meet rising living costs. The CPI calculation used to calculate the raise reflects only a small portion of the actual expenses Ontarians face.
Pickthorne explains that the CPI is just one tool, and wage hike decisions are also influenced by politics. He stresses that the government is not fully accounting for major expenses, such as housing.
As estimated by OLWN, the living wage in the Greater Toronto Area for 2024 is $26.00 per hour. Similarly, Spergel’s estimates on Ontario’s living costs also reflect a substantial gap between typical monthly earnings and expenses. A single adult is expected to spend between $3,200 and $3,800 per month, while a full-time worker earning $17.60 per hour, working 40 hours a week, brings home about $3,046 monthly. This figure includes essential costs like rent, groceries, transportation, utilities, and healthcare.
As Pickthorne bluntly puts it, “There is simply no place in the province where you can work full-time at a minimum wage job even after the increase.”
Ontario Minimum Wage 2025 Compared to Other Parts of Canada
Viet Vu, manager of economic research at Toronto Metropolitan University's public policy think tank, The Dais, attributed the significant gap between Ontario’s 2025 minimum wage and living costs to two main factors: high inflation in 2023 and wage hikes during the pandemic that did not keep pace with inflation, as CBC reported.
Here’s how Ontario’s minimum wage compares to the rest of Canada, according to Narcity:
Nunavut: $19.00
Yukon: $17.94
Federally regulated sectors: $17.75
British Columbia: $17.40 (increasing to $17.85 on June 1)
Ontario: $17.20 (increasing to $17.60 on October 1)
Northwest Territories: $16.70
Prince Edward Island: $16.00
Newfoundland and Labrador: $16.00
Manitoba: $15.80 (increasing to $16.00 on October 1)
Quebec: $15.75 (increasing to $16.10 on May 1)
Nova Scotia: $15.70 (increasing to $16.50 on October 1)
New Brunswick: $15.65
Saskatchewan: $15.00
Alberta: $15.00
Despite the rise in Ontario minimum wage in 2025, many workers still face significant challenges in covering the true cost of living. If you’re looking to boost your income and improve financial stability, exploring the highest-paying jobs in Canada could be a great next step.
Editor’s Choice: Minimum Wage in Europe: 2025 Rankings from Highest to Lowest
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