Minimum Wage Increase to $16.55 Ontario - October 1, 2023
Ontario's minimum wage is set to increase to $16.55 per hour on October 1, 2023, benefiting low-income workers in the province.
Employers should prepare for the increase by adjusting their payroll and budget, revising their employment policies, job descriptions, and employee contracts to ensure compliance with the new minimum wage rates, and communicating the wage increase to their employees.
This 6.8% increase will help low-income workers offset the rising cost of living. The new minimum wage is the highest in Canada. Workers in retail trade and accommodation and food services, which employ over 65% of workers earning the current general minimum wage of $15.50 per hour, will benefit from the wage increase.
The special minimum wage rates for students under 18 years, homeworkers, and hunting, fishing, and wilderness guides will also increase. Companies can use this opportunity to boost employee morale and retention and attract new talent.
Next Steps
Hold a meeting with your HR department to discuss the new minimum wage rates
Review the payroll records to identify the employees affected by the new minimum wage rates
Revise the employment policies, JDs, and employee contracts to reflect the minimum wage rates
Communicate the wage increase to the affected employees, providing clear information about the new rate and the effective date
Resources
Change in Employment Conditions Letter
This letter is a written notice provided by an employer to an employee regarding changes to their terms of employment, such as salary, work hours, benefits, or job responsibilities. This letter outlines the specifics of the changes and the effective date, and typically requires the employee to acknowledge their agreement to the new terms. This letter is important because it helps ensure that there is a clear understanding between the employer and employee, and can serve as documentation in case of any disputes or legal issues.
Contact us if you require assistance in drafting a Change of Employment Conditions Letter, our team of HR professionals can provide guidance and support to ensure that your letter is clear, effective, and complaint with all relevant laws and regulations.