(Mar. 23/15) The Ontario government will raise the general minimum wage by 25 cents to $11.25 an hour on Oct.1, 2015.

This is the first increase under the government’s new legislation that ties future raises to inflation.  Any wage hike puts the squeeze on profit margins and makes it harder for our members to expand. However, this formula creates yearly increases, which removes the politics from the process. The previous system led to acrimonious campaigns and large, unjustified wage hikes. These increases gave businesses little warning and time to prepare.

Going forward, the government will announce the yearly change before April for an October start. As the rate is tied to inflation, our members can better predict future increases.

For members only: Read our minimum wage bulletin released in December 2014 to help members with their labour cost planning. In this bulletin, we forecasted this increase.

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