Ontario hiking minimum wage

Rises to $7.15 in February, will hit $8 per hour by 2007

Ontario’s new Liberal government is hiking the province’s minimum wage for the first time in nine years.

Labour Minister Chris Bentley said the wage will rise 30 cents an hour to $7.15 on Feb. 1, 2004.

“It is time for Ontario’s lowest-paid and most vulnerable workers to receive a fair increase in their earnings,” said Bentley. “By delivering this positive change, we are providing an opportunity for all to benefit from Ontario’s economic prosperity.”

The increase is the first of a series that will see the minimum wage in Ontario rise to $8 per hour on Feb. 1, 2007. Bentley said the phased-in approach will give Ontario businesses time to adjust to the increases so they can continue to be competitive with other Canadian and American jurisdictions.

“By phasing in Ontario’s minimum wage over four years, we can help these workers benefit from Ontario’s economic growth while keeping Ontario businesses competitive,” he said.

Other minimum wage rates will also increase on February 1, 2004. The
minimum wage for:
•students under 18 years old and employed for not more than 28 hours a week will rise from $6.40 to $6.70 per hour on Feb. 1, 2004;
•liquor servers will increase from $5.95 to $6.20 per hour;
•hunting and fishing guides currently paid a minimum of $34.25 for less than five consecutive hours in a day and $68.50 for five or more hours in a day (whether or not the hours are consecutive) will also increase to $35.75 and $71.50 respectively.

Fact sheet on Ontario’s minimum wage increase

•Ontario's current general minimum wage is $6.85 per hour. This results in a full-time minimum wage earner receiving an annual income of $14,248.

•From 1995 to 2002, Ontario's inflation rate increased by more than 15 per cent. During this time, the average hourly earnings of an Ontario worker (excluding overtime) have increased by 15.5 per cent. Over the same period, the general minimum wage remained frozen at $6.85 per hour.

•In 2000, there were 191,000 minimum wage earners in Ontario, earning between the liquor server's minimum wage of $5.95 per hour and the general minimum wage of $6.85 per hour. This represents approximately 3.1 per cent of the estimated number of workers in Ontario in 2000.

•Another 489,000 workers earned between the general minimum wage of $6.85 per hour and $8.00 per hour. This represents approximately 7.9 per cent of the estimated number of workers employed in Ontario in 2000.

Implementation timelines

•The general minimum wage for Ontario workers will increase to $7.15 per hour on February 1, 2004 from the current rate of $6.85 per hour. Further increases will follow on an annual basis, bringing the minimum wage to $8.00 per hour by February 2007.

Ontario general minimum wage rateImplementation date
$6.85January 1995
$7.15Feb. 1, 2004
$7.45Feb. 1, 2005
$7.75Feb. 1, 2006
$8.00Feb. 1, 2007


Minimum wage increases for specific job categories

Job categoryCurrentFeb. 1, 2004Feb. 1, 2005Feb. 1, 2006Feb. 1, 2007
Students under 18 and working not more than 28 hours per week$6.40$6.70$6.95$7.25$7.50
Liquor server$5.95$6.20$6.50$6.75$6.95
Hunting and fishing guides$34.25 (paid this minimum rate for less than five consecutive hours in a day); $68.50 (for five or more hours in a day whether or not the hours are consecutive)$35.75; $71.50$37.35; $74.50$38.75; $77.50$40.00; $80.00
Homeworkers (defined as people doing paid work in their home for a third-party employer)110 per cent of the general minimum wage110 per cent of the general minimum wage110 per cent of the general minimum wage110 per cent of the general minimum wage110 per cent of the general minimum wage

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