Minimum wage increase a positive for employees, a concern for businesses
Many Ontario employees will soon see a bump in their paychecks as Ontario increased the minimum wage as of Oct 1.
The increase, which was announced earlier this year, puts the new wage at $15.50. It follows an increase back in January when the rate went up by 65 cents to $15.
With Canada’s annual inflation rate reaching new highs, the 50 cent increase is a relief to those struggling with the cost of living.
“If you're a minimum wage worker of course you want to see an increase in your income, particularly right now given the cost you're facing as a worker have gone through the roof,” says Dan Kelly, the president & CEO of the Canadian Federation of Independent Business (CFIB).
The news is a win for employees. But it has proven to be a challenge for some businesses who have to incur the extra cost.
“I think the hardest pill for me to swallow is servers used to make less than others because they received gratuities. At the start of the year we were paying servers $12.50 an hour [and] now we’re paying $15.50 an hour," says Dave Monture, the owner of the Wortley Roadhouse in London, Ont.
Monture told CTV News London that they've had to slightly raise their prices this year due to the cost of food going up, which makes the minimum wage hike potentially another hurdle.
“We’re at a point where we’re starting to get closer to pre-pandemic sales numbers but the margins are just shrinking incredibly because the cost of everything going up so quickly," he adds.
According to the CFIB, 60 per cent of small businesses in Ontario are still not hitting their usual revenue levels.
“Minimum wage increases really disproportionately affect parts of the economy that are very labour intensive,” Kelly says. “They tend to be small businesses in retail, hospitality, the service sector. Coincidentally these are the very same sectors that were hit the hardest by pandemic restrictions.”
Students under the age of 18 are now earning $14.60 per hour, while homeworkers are seeing a raise of 55 cents to $17.05 per hour.
Labour Minister Monte McNaughton has said Ontario will continue to announce each years planned wage that will take place every October.
The increase in minimum wage will be determined depending on inflation from previous years.
— With files from CTV’s News Kitchener’s Krista Sharpe
CTVNews.ca Top Stories
Senate expenses climbed to $7.2 million in 2023, up nearly 30%
Senators in Canada claimed $7.2 million in expenses in 2023, a nearly 30 per cent increase over the previous year.
Pedestrian, baby injured after stroller struck and dragged by vehicle in Squamish, B.C.
Police say a baby and a pedestrian suffered non-life-threatening injuries after a vehicle struck a baby stroller and dragged it for two blocks before stopping in Squamish, B.C.
Tom Mulcair: Park littered with trash after 'pilot project' is perfect symbol of Trudeau governance
Former NDP leader Tom Mulcair says that what's happening now in a trash-littered federal park in Quebec is a perfect metaphor for how the Trudeau government runs things.
'It’s discriminatory': Individuals refused entry to Ontario legislature for wearing keffiyeh
Individuals being barred from entering Ontario’s legislature while wearing a keffiyeh say the garment is part of their cultural identity— and the only ones making it political are the politicians banning it.
RCMP uncovers alleged plot by 2 Montreal men to illegally sell drones, equipment to Libya
The RCMP says it has uncovered a plot by two men in Montreal to sell Chinese drones and military equipment to Libya illegally.
Government agrees to US$138.7M settlement over FBI's botching of Larry Nassar assault allegations
The U.S. Justice Department announced a US$138.7 million settlement Tuesday with more than 100 people who accused the FBI of grossly mishandling allegations of sexual assault against Larry Nassar in 2015 and 2016, a critical time gap that allowed the sports doctor to continue to prey on victims before his arrest.
Canucks goalie Thatcher Demko won't play in Game 2
The Vancouver Canucks will be without all-star goalie Thatcher Demko when they face the Nashville Predators in Game 2 of their first-round playoff series.
Man wanted in connection with deadly shooting in Toronto tops list of most wanted fugitives in Canada
A 35-year-old man wanted in connection with the murder of Toronto resident 29-year-old Sharmar Powell-Flowers nine months ago has topped the list of the BOLO program’s 25 most wanted fugitives across Canada, police announced Tuesday.
Doctors ask Liberal government to reconsider capital gains tax change
The Canadian Medical Association is asking the federal government to reconsider its proposed changes to capital gains taxation, arguing it will affect doctors' retirement savings.