As of October 1, 2026, Ontario’s general minimum wage has increased from $17.60 to $17.95 per hour.
The new rate applies from October 1, 2026, through September 30, 2027, and is part of Ontario’s annual minimum wage adjustment tied to the Ontario Consumer Price Index (CPI). The 2026 adjustment is 1.9%. The Ontario government estimates that the increase will benefit more than 700,000 workers across the province.
For employers, October 1 is more than a date on the calendar. It is a good opportunity to review payroll settings, employee wages, and labour costs to make sure everything reflects the new requirements.
What Is Ontario’s Minimum Wage in 2026?
Ontario has different minimum wage rates depending on the employee’s category.
| Employee category | Minimum wage as of October 1, 2026 |
| General minimum wage | $17.95/hour |
| Students | $16.90/hour |
| Homeworkers | $19.70/hour |
| Hunting, fishing and wilderness guides — less than 5 consecutive hours | $89.75/day |
| Hunting, fishing and wilderness guides — 5+ hours | $179.50/day |
The $17.95 general rate applies to most employees, including full-time, part-time and casual employees. Ontario’s minimum wage rules can also apply to employees paid by commission, piece rate, flat rate or salary, subject to the specific rules that apply to their employment situation.
The student rate applies to students under 18 who work 28 hours or less per week while school is in session, or who work during a school break or summer holidays, subject to the rules under Ontario’s Employment Standards Act.
Why Does Ontario’s Minimum Wage Increase Every October?
Ontario’s minimum wage is adjusted annually based on changes in the Ontario Consumer Price Index.
Under the Employment Standards Act, 2000, the adjustment takes effect on October 1 each year. The legislation establishes a formula based on Ontario CPI and requires the new rates to be published by April 1.
For 2026, the general minimum wage increased by $0.35 per hour, from $17.60 to $17.95.
For an employee working 40 hours per week at the general minimum wage, the Ontario government estimates the annual increase will be approximately $728, before deductions.
What Employers Should Review After the October 1 Increase
1. Update your payroll system
If you have employees whose wages are affected by the new minimum wage, make sure your payroll system reflects the applicable rate beginning October 1.
This is particularly important for businesses using automated payroll systems, because the correct rate needs to be applied to the appropriate hours worked.
Employers should also review employee classifications to make sure the correct minimum wage category is being used.
2. Pay attention to pay periods that cross October 1
This is an important detail for employers processing payroll this week.
If a minimum wage change takes effect in the middle of an employee’s pay period, Ontario’s rules require the calculations to be made as though the pay period were two separate pay periods:
- the portion before October 1 uses the previous applicable minimum wage; and
- the portion on or after October 1 uses the new applicable minimum wage.
This means employers should not simply apply one rate to the entire pay period when the employee’s applicable minimum wage changes during that period.
Don’t Forget About Wage Compression
A minimum wage increase can affect more than employees currently earning minimum wage.
For example, imagine a business has employees earning:
- $17.95/hour
- $18.25/hour
- $19.00/hour
- $20.00/hour
Once the minimum wage increases, the difference between these wage levels becomes smaller.
This is often referred to as wage compression.
There is no general requirement under Ontario’s minimum wage rules to increase the wages of employees simply because they already earn more than the new minimum wage. However, employers may want to review their wage structure to determine whether existing pay differences still make sense for their business.
This can be especially relevant when employees have different levels of experience, responsibilities, seniority or skills.
A minimum wage change can therefore be a useful reminder to review the overall payroll budget, not just the employees receiving the minimum rate.
What Does This Mean for Your Business?
For many businesses, a $0.35 hourly increase may look small on an individual paycheque.
Across a workforce, however, even relatively small hourly changes can affect total labour costs.
Employers may want to review:
- employee hourly rates;
- payroll system settings;
- pay periods that cross October 1;
- student and other specialized minimum wage categories;
- overtime calculations where applicable;
- overall payroll budgets;
- wage differences between employees; and
- projected labour costs for the remainder of 2026 and into 2027.
Ontario’s minimum wage increase is also particularly relevant to businesses in industries with larger numbers of minimum-wage workers. The Ontario government reports that approximately 35% of minimum-wage workers are in retail trade and 24% are in accommodation and food services.
The Bottom Line for Ontario Employers
Ontario’s general minimum wage is now $17.95 per hour, effective October 1, 2026.
For employers, the immediate priority is to make sure affected employees are being paid at least the applicable minimum wage and that payroll calculations reflect the change correctly. But this is also a good time to look beyond compliance.
Review your payroll, check employees who are close to the new minimum, consider the effect on your labour budget, and make sure your wage structure continues to work for your business.
Need help setting up your payroll correctly or understanding how the minimum wage change may affect your business? The TaxForce provides payroll setup and advisory support, along with accounting and bookkeeping services for businesses across Ontario.
Learn more about The TaxForce’s business and payroll services
Important Note
This article is provided for general informational purposes and reflects Ontario minimum wage information available as of October 1, 2026. Employment standards can vary depending on the employee, industry and circumstances. For questions about a specific employee or payroll situation, consult the applicable Ontario employment standards requirements or speak with a qualified professional.
Sources:
Ontario — Minimum Wage: Your Guide to the Employment Standards Act
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