New Ontario Minimum Wage Increase Coming In 2026

Last Updated On 8 February 2026, 9:38 AM EST (Toronto Time)

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Ontario workers are set to receive another minimum wage boost in 2026, as new inflation data indicates wage growth will continue under the province’s automatic indexation formula.

Statistics Canada’s latest release shows the Ontario Consumer Price Index (CPI) increased by +2.1% over the 12 months ending December 2025, which directly determines how much wages will rise when the new rates take effect in 2026.

This means Ontario’s general minimum wage is projected to rise from the current $17.60 to approximately $18 per hour, and special minimum hourly wage rates for students, work-from-home workers, and guides will also increase.

Here’s everything Ontario workers and employers need to know about the 2026 minimum wage increase, including current rates, projected figures, key dates, and how the adjustment impacts different worker categories.

How Ontario Calculates Minimum Wage Increases

Ontario uses a transparent, inflation-based formula to adjust minimum wage rates annually.

Under the Employment Standards Act (ESA), the province adjusts the minimum hourly wage every October based on the 12-month average change in the Ontario Consumer Price Index.

This CPI-based indexation ensures that workers’ wages keep pace with the rising cost of living without requiring annual legislative debates or political negotiations.

The annual minimum wage adjustment process follows a predictable timeline:

March or April: The Ontario government officially announces the new minimum wage rates based on finalized CPI calculations.

October 1: The new minimum wage rates automatically take effect, giving employers six months to prepare for payroll adjustments.

With the newly released +2.1% CPI increase for December 2025, Ontario is positioned to see moderate but meaningful wage growth across all minimum wage categories for 2026.

Current Ontario Minimum Wage Rates

Before examining the projected 2026 increases, here are the minimum wage standards currently in effect across Ontario:

Worker Category	Current Minimum Wage (Oct 1, 2025)
General Workers	$17.60 per hour
Students (Under 18, ≤28 hrs/week)	$16.60 per hour
Homeworkers	$19.35 per hour
Wilderness Guides (<5 hours/day)	$88.05 per day
Wilderness Guides (5+ hours/day)	$176.15 per day

Detailed Ontario Minimum Wage Increase 2026

By applying the confirmed +2.1% CPI inflation rate to current wage levels, Ontario workers can expect the following minimum wage increases when the new rates take effect on October 1, 2026:

General Minimum Wage: Reaching the $18 Milestone

Current Rate: $17.60 per hour

CPI Adjustment: +2.1%

Projected 2026 Rate: Approximately $18.00 per hour

This increase would mark a symbolic milestone for Ontario, pushing the general minimum wage to the $18 per hour level.

Student Minimum Hourly Wage: Approaching $17 Per Hour

Current Rate: $16.60 per hour

CPI Adjustment: +2.1%

Projected 2026 Rate: Approximately $17 per hour

Student wages continue to narrow the gap with the general minimum hourly wage, providing improved income opportunities for young workers balancing employment with their education.

Work From Home Minimum Wage: Nearing $20 Per Hour

Current Rate: $19.35 per hour

CPI Adjustment: +2.1%

Projected 2026 Rate: Approximately $19.80 per hour

Homeworkers, those who perform paid work from their homes for employers, continue to receive Ontario’s highest minimum hourly wage category, reflecting the unique nature of remote piecework and contract-based tasks.

Hunting, Fishing, and Wilderness Guide Rates

For Less Than Five Consecutive Hours Per Day:

Current Rate: $88.05 per day

Projected 2026 Rate: Approximately $90.00 per day

For Five or More Hours Per Day:

Current Rate: $176.15 per day

Projected 2026 Rate: Approximately $180.00 per day

These adjustments ensure wilderness guides receive inflation-adjusted compensation for physically demanding and skill-based outdoor fieldwork.

Complete Summary: 2026 Ontario Minimum Hourly Wage Projections

Worker Category	Current Rate (2025)	Projected Rate (Oct 2026)
General Workers	$17.60/hour	~$18.00/hour
Students	$16.60/hour	~$17/hour
Homeworkers	$19.35/hour	~$19.80/hour
Guides (<5 hrs)	$88.05/day	~$90.00/day
Guides (5+ hrs)	$176.15/day	~$180.00/day

Ontario Minimum Wage History: A Decade of Growth

Ontario’s minimum hourly wage has seen substantial growth over the past decade, with cumulative increases reflecting both policy changes and inflation adjustments:

Year	Minimum Hourly Wage	Change
2018	$14.00	+$2.40
2020	$14.25	+$0.25
2021	$14.35	+$0.10
Jan 2022	$15.00	+$0.65
Oct 2022	$15.50	+$0.50
Oct 2023	$16.55	+$1.05
Oct 2024	$17.20	+$0.65
Oct 2025	$17.60	+$0.40
Oct 2026 (Projected)	~$18.00	+$0.40

Since 2018, Ontario’s general minimum hourly wage has increased from $14.00 to a projected $18.00 in 2026, a cumulative increase of approximately 28.6% over 8 years.

When Will Ontario Announce the 2026 Minimum Wage Rates?

Based on Ontario’s established schedule for minimum wage announcements, workers and employers should mark these important dates:

Before April 1, 2026: The Ontario government will officially announce the confirmed 2026 minimum hourly wage rates based on finalized CPI calculations.

October 1, 2026: The new minimum hourly wage rates automatically take effect at 12:00 AM, applying to all hours worked from that date forward.

Given the consistency of Ontario’s CPI-based indexation formula, the projected +2.1% increase is expected to closely match, or exactly match, the official announcement, unless additional policy changes are introduced.

What the 2026 Minimum Hourly Wage Increase Means for Ontario

The upcoming minimum wage adjustment carries important implications for workers, employers, and the broader Ontario economy:

For Workers

The 2026 increase will help protect workers, purchasing power against inflation, ensuring wages keep pace with rising costs for groceries, housing, transportation, and utilities.

The projected increase represents approximately $832 in additional annual income before taxes for a full-time worker who earns minimum hourly wage (40 hours per week).

For Employers

Businesses should begin reviewing payroll systems and financial projections for the 2026-2027 fiscal year.

The six-month notice period between the official announcement and implementation gives employers adequate time to prepare for increased labour costs.

For the Economy

Higher wages typically lead to increased consumer spending among low-wage workers, which can stimulate local economies.

Ontario’s approach of tying increases to CPI helps balance worker protection with economic stability.

How Ontario’s Wage Rates Compares Across Canada

With the projected $18 per hour rate, Ontario will remain competitive among Canadian provinces and territories.

As of 2025, Ontario’s wage rates rank fourth highest nationally, behind Nunavut ($19.00), Yukon ($17.94), and British Columbia ($17.85).

The federal minimum wage for federally regulated workers will also increase to $18.10 per hour on April 1, 2026, under the Canada Labour Code, keeping federal rates slightly above Ontario’s provincial minimum.

Ontario’s minimum wage is on track to reach the historic $18 per hour mark in October 2026, driven by the province’s CPI-based indexation formula and the latest +2.1% inflation data.

Workers across all minimum wage categories, including general employees, students, homeworkers, and wilderness guides, can expect proportional increases that will help maintain purchasing power amid ongoing inflation.

The official announcement confirming exact rates is expected before April 1, 2026.

Until then, these projections offer a reliable preview of what millions of Ontario workers and thousands of employers can plan for when the new minimum wage arrives on October 1, 2026.

For more information on Ontario’s employment standards and minimum wage requirements, visit the Ontario Ministry of Labour’s official minimum wage guide.

Frequently Asked Questions (FAQs)

How much will Ontario’s minimum hourly wage increase in 2026?

Based on the +2.1% CPI increase, Ontario’s general minimum wage is projected to rise by approximately $0.40, from $17.60 to $18.00 per hour, effective October 1, 2026.

Does Ontario’s minimum hourly wage apply to salaried employees?

Yes, under the Employment Standards Act, salaried employees must earn at least the equivalent of minimum hourly wage rates set when their salary is divided by total hours worked. If the effective hourly rate falls below the legal minimum, employers must make up the difference.

Can employers deduct tips from minimum wage in Ontario?

No, Ontario eliminated the separate lower wage for liquor servers in 2022. Employers must pay at least the full minimum hourly wage before tips or gratuities. Tips cannot be used to meet minimum hourly wage obligations.

What can I do if my employer pays below minimum wage?

Workers can file a complaint with the Ontario Ministry of Labour to recover unpaid wages. Employers found in violation face penalties including back pay orders plus interest. Workers cannot be legally punished or terminated for asserting their minimum hourly wage rights.

Will Ontario’s minimum wage continue to increase after 2026?

Yes, Ontario’s minimum wage is automatically adjusted annually on October 1 based on changes to the Ontario Consumer Price Index. As long as inflation remains positive, minimum hourly wages will continue to rise in Ontario and most of the other provinces each year to help workers maintain purchasing power.

Gagandeep Kaur Sekhon

Gagandeep Kaur Sekhon moved to Canada in 2010 on a study visa. She navigated through the ups and downs of her student life and gained her permanent residency in 2015. Today, she is a proud Canadian citizen residing in Calgary, Alberta. She is mother of 2 beautiful daughters and making her difference through writing and guidance at INC – Immigration News Canada.