New Ontario Minimum Wage Increase Coming In 2026

Canadianow- Editor

Last Updated On 8 February 2026, 12:3 PM EST (Toronto Time)

Ontario updates its minimum wage every year using an inflation-based formula. This matters for newcomers because many first jobs in Ontario are paid close to minimum wage. It also matters for employers planning payroll. A common misunderstanding is that the new wage starts right away—Ontario increases normally take effect on October 1, not in January.

What is the current Ontario minimum wage?

Ontario’s adult general minimum wage is $17.60/hour (as of October 1, 2025).

Ontario also has special minimum wage categories (for example, students under 18, homeworkers, and hunting/fishing guides). These categories are defined in Ontario’s employment standards law.

How Ontario sets the next minimum wage (simple explanation)

Ontario’s Employment Standards Act says minimum wage rates are adjusted each year on October 1 using the Ontario Consumer Price Index (CPI) and rounded to the nearest $0.05.

The law also requires the Minister to publish the new rates by April 1 each year (for rates that will start on October 1).

What the October 1, 2026 rate could look like (estimate)

Statistics Canada shows Ontario CPI was up 2.1% from December 2024 to December 2025.

If Ontario’s annual adjustment ends up close to 2.1%, a simple estimate for the general minimum wage would be:

  • $17.60 × 1.021 = $17.97 → rounded to the nearest $0.05 = about $17.95/hour

That is why many news sites say “around $18.00.” The exact number depends on the official CPI calculation used for the annual adjustment and rounding rules.

What this means for your pay

If the increase is roughly $0.35 to $0.40/hour, a full-time worker (40 hours/week) could earn about:

  • $728/year extra before tax (0.35 × 40 × 52)

  • up to $832/year extra before tax (0.40 × 40 × 52)

What newcomers should do now

  • Check your pay stubs and keep copies (hours, rate, overtime).

  • Remember: being paid “salary” does not remove minimum wage protections—your hourly equivalent still matters under the ESA.

  • Watch for the official Ontario posting by April 1, 2026, because that is when the province must publish the confirmed October 1 rate.

Official government sources (outlinks)

  • Ontario Employment Standards Act (minimum wage rules, annual adjustment, April 1 publication requirement).

  • Statistics Canada CPI table showing Ontario inflation figures.

  • Government of Canada document listing Ontario’s adult minimum wage ($17.60 as of Oct 1, 2025).

FAQs

When will Ontario confirm the 2026 minimum wage?
Ontario must publish the rates no later than April 1, 2026 for the increase that starts October 1, 2026.

Is $18.00 guaranteed in 2026?
No. “$18” is a reasonable estimate, but the official rate depends on Ontario’s CPI-based formula and rounding.

Does minimum wage apply if I’m paid salary or commission?
Minimum wage still matters. Your earnings must meet at least the minimum wage level when calculated properly under the ESA rules.

Reality check

This is a projection, not a confirmed announcement. Inflation can change, and Ontario rounds to the nearest $0.05, which can move the final rate slightly. Also, many jobs pay above minimum wage already, so not everyone will feel the increase. If your budget depends on this change, plan using a range (around $17.95–$18.00) until the province publishes the final rate by April 1, 2026.

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