Ontario's Minimum Wage Increase: How Employers Can Prepare for the Changes Ahead

The Government of Ontario has recently announced an increase in the general minimum wage, which is set to take effect on October 1, 2023. This increase will raise the minimum wage from $15.50 per hour to $16.55 per hour, resulting in a 6.8% pay increase for workers who earn the minimum wage.

Impact of Minimum Wage Increase

The increase in minimum wage will have a significant impact on Ontario’s workforce. Workers who earn the general minimum wage and work 40 hours per week will see an annual pay increase of nearly $2,200. While this increase is welcome news for employees, it will have financial implications for employers, who will need to find ways to manage this increase in labor costs.

How Employers Can Prepare

This content aims to offer practical tips to employers on how they can prepare for the minimum wage increase and ensure compliance with the new provincial legislation:

  1. Review employment contracts: Employers should review all employment contracts to ensure that they are compliant with the new minimum wage requirements. Any necessary changes or adjustments should be made before the effective date of the increase.


  1. Review the Payroll System: Employers should review their payroll systems to ensure they are set up to comply with the new minimum wage legislation. Employers should update their payroll systems to ensure that all employees are paid the correct amount, including hourly employees, salaried employees, and any other workers who are entitled to the minimum wage.


  1. Budgeting: Employers should review their budgets and make adjustments to account for the increase in labor costs. This may involve re-evaluating staffing levels or increasing the prices of goods and services to offset the increase in labor costs.


  1. Communication: Employers should communicate the upcoming minimum wage increase to their employees to ensure they are aware of the change. This will help to minimize any confusion or misunderstandings that may arise when the new minimum wage rates come into effect.


  1. Monitor changes in legislation: Employers should monitor any changes in legislation related to the minimum wage to ensure ongoing compliance. This includes reviewing any updates or changes to the minimum wage requirements and adjusting payroll systems accordingly.


In conclusion, the upcoming increase in Ontario's minimum wage will affect both employers and employees. To ensure compliance with the new legislation, employers should take proactive steps, such as reviewing their employment contracts, payroll practices, communicating the change to their employees, and consulting with legal professionals. At Sicotte Guilbault, our experienced team can assist you in navigating the complex legal landscape and help you stay up to date with employment standards legislation.