Ontario minimum wage 2026: rates and payroll costs

Ontario minimum wage 2026: the rates in force today

As of October 24, 2026, the general minimum wage in Ontario is $17.95 per hour. It took effect on October 1, 2026 and applies until September 30, 2027, according to the Ontario government’s Employment Standards Act guide. The student minimum wage is $16.90 per hour and the homeworker minimum wage is $19.70 per hour.

Ontario states that the October 1, 2026 increase is tied to the Ontario Consumer Price Index for 2026. The rates for the period starting October 1, 2027 have not been published on the source page we checked, so this guide does not estimate them. Check the Ontario page each autumn before you update payroll.

Who gets which rate: general, student, homeworker and guides

The general rate of $17.95 applies to most employees, whether they are full-time, part-time or casual, and whether they are paid hourly, by commission, by piece rate, a flat rate or a salary. Some jobs are exempt or have special rules, so confirm the position before assuming the general rate is the answer.

The student rate of $16.90 applies to students under 18 who work 28 hours a week or less while school is in session, or who work during a school break or summer holidays. The Ontario page describes the student rate only for those students, so someone who is 18 or older, or who works longer hours during the school term, should be checked against the general rate and the special rules for their job.

Homeworkers do paid work in their own homes, such as sewing for a manufacturer or answering calls for a call centre. They are entitled to $19.70 per hour, and students of any age who work as homeworkers receive the homeworker rate. Hunting, fishing and wilderness guides are paid by blocks of time instead: $89.75 for under five consecutive hours in a day and $179.50 for five or more hours.

How the minimum wage is checked on payday

Ontario says compliance is determined by pay period, not by an annual average. If someone works 38 hours in a week and is paid weekly, the employer must pay at least $682.10 before deductions for that week (38 hours at $17.95).

The same logic applies to commission. If pay is partly or wholly commission, it must still work out to at least the minimum wage for every hour worked in the pay period. Ontario’s example has a weekly commission of $300 over 25 hours, against a minimum of $448.75, leaving the employer owing the $148.75 difference. Overtime makes the calculation more complicated, so ask your payroll provider how it is handled in your system.

Recent increases as stated by Ontario

The Ontario page lists four consecutive October-to-September periods. The general rate was $16.55 from October 1, 2023, $17.20 from October 1, 2024, $17.60 from October 1, 2025 and $17.95 from October 1, 2026.

Over the same periods the student rate was $15.60, $16.20, $16.60 and $16.90, and the homeworker rate was $18.20, $18.90, $19.35 and $19.70. We have left out any older history and any percentage changes because the page does not state them.

What a minimum wage employee costs: CPP, EI and vacation pay

Wages are only part of the cost. As an employer you generally match the employee’s CPP contributions, and for EI outside Quebec you normally pay 1.4 times the employee’s premium. For 2026 the CRA shows a CPP rate of 5.95% on pensionable earnings above the $3,500 basic exemption, and an EI premium rate of 1.63% on insurable earnings. Reporting and remittance are separate duties; see the payroll remittance rules before your first pay run.

Here is an illustrative example with round assumptions: one employee works 40 hours a week for 52 weeks at $17.95, which is $37,336 in base wages. Employer CPP is about $2,013 (5.95% of $37,336 less the $3,500 exemption). Employer EI is about $852 (1.63% of $37,336, multiplied by 1.4). These figures are illustrative, ignore vacation pay, benefits and other employer costs, and assume no part-year or reduced EI rate.

Vacation pay is a further cost. Ontario requires at least 4% of gross wages (excluding vacation pay) for employees with less than five years of employment, and at least 6% after five years. On the same $37,336, 4% is about $1,493. Ask your payroll provider how vacation pay is handled for CPP, EI and year-end reporting. Some other employer costs, such as employer health tax and workplace insurance, depend on your payroll size and industry, and this page does not give figures for them.

Update payroll when the rate changes

When a new rate takes effect, update the pay rate in your payroll system before the first pay period that includes the effective date, and review any wage that was set just above the old minimum. Employees paid by salary or commission should be tested against hours worked, not just against the headline rate.

Keep a note of the date you checked the rate and the page you checked, because rates change on a fixed October date each year and mistakes tend to appear when a wage was set a few cents above the old rate. If you are budgeting a first hire, include CPP, EI and vacation pay in the plan. An accountant or payroll provider can confirm which rate applies to each role and set up remittances.