$17.60 per hour New Minimum Wage In Ontario Effective October 1, 2025

Student Minimum Wage In Ontario Also Increases to $16.60 per hour

Toronto/Chandigarh: On April 1, 2025, Ontario announces a significant update that’s set to impact workers across the province: a new minimum wage increase of 40 cents, effective October 1, 2025.

This adjustment, raising the general minimum wage to $17.60 per hour, reflects the provincial government’s ongoing efforts to ensure fair pay amid rising living costs.

Aimed at supporting low-income earners, this 2.33% hike aligns with the Ontario Consumer Price Index (CPI) and signals a commitment to keeping wages in step with inflation.

But this isn’t just about numbers—it’s about people. From students juggling part-time jobs to remote workers tapping away at home, the minimum wage framework in Ontario covers various categories of employees, each with tailored rates.

In this in-depth article, we’ll break down everything you need to know about the 2025 minimum wage increase, explore how it affects different workers, and examine why some argue it still falls short of a true living wage.

Whether you’re an employee, employer, or simply curious about Ontario’s economic landscape, read on for a comprehensive look at this pivotal change.

Let’s start with the headline figure: as of October 1, 2025, Ontario’s general minimum wage will climb to $17.60 per hour.

The change marks a 40-cent increase from the current rate of $17.20 per hour, which took effect on October 1, 2024. That earlier jump saw wages rise from $16.55, showcasing a consistent pattern of annual adjustments tied to inflation.

This 2.33% boost isn’t arbitrary—it’s rooted in historical CPI data, a key economic indicator that tracks the cost of goods and services.

By tethering wage increases to CPI, Ontario aims to help workers maintain their purchasing power as prices for essentials like groceries, rent, and utilities creep upward.

Historically, the province has taken steps to ensure fairness, such as eliminating the separate (and lower) minimum wage for liquor servers, bringing their pay in line with the general rate.

For the average worker—think retail staff, factory labourers, or hospitality employees—this increase translates to an extra $832 yearly for a 40-hour schedule.

While modest, it’s a lifeline for those struggling to keep up with Ontario’s escalating cost of living. But how does this change ripple out to other worker categories? Let’s dive deeper.

Student Minimum Wage In Ontario Also Increases to $16.60 per hour

Students under 18 balancing school and part-time jobs are getting a raise too. Effective October 1, 2025, the student minimum wage will rise to $16.60 per hour, up from the current $16.20 established in 2024.

Last year’s 60-cent increase set the stage for this latest adjustment, ensuring young workers aren’t left behind.

This rate applies specifically to students under 18 who work 28 hours or fewer per week during the school year or those picking up shifts during summer breaks.

Whether they’re local teens or international students studying in Ontario, the rules are the same: if they fit this category, $16.60 is their new baseline come October 1, 2025.

Interestingly, the student wage remains lower than the general minimum, a policy rooted in the idea that young workers often have fewer financial responsibilities.

However, there’s a catch: students of any age working from home—say, tutoring online or freelancing—must be paid the higher “homeworker” rate, which we’ll cover next.