Ontario Minimum Wage Update for HR Effective October 1, 2025

jrezvani
Sep 25
2 min read

What’s changing on Oct 1?

General minimum wage increases to $17.60/hour (from $17.20).
Student minimum wage (under 18, working 28 hrs/week or less during the school term or on breaks) increases to $16.60/hour (from $16.20).

Who is affected?

Employees in Ontario covered by the Employment Standards Act (ESA) whose pay rates are at or near the new minimums. If current pay is already above the new minimums, rates do not need to change unless you are making a market or equity adjustment.

When will the change appear on pay?

Apply the new rates to all hours worked on or after October 1, 2025. Employees will see the change on the first pay covering those hours, depending on your payroll cycle.

How does this affect students under 18?

Use the student rate only where the statutory criteria are met. If a student exceeds 28 hours per week during the school term, the general minimum wage applies for those hours.

What about salaried employees?

Review salaries that, when converted to an hourly equivalent based on standard hours, could fall below the new minimums. Adjust as required to maintain compliance.

Overtime and Public Holiday Pay

Where minimums apply, overtime and public holiday pay calculations flow from the new regular rate. Confirm your payroll rules and update test cases to avoid miscalculation.

Shift Premiums and Differentials

Existing premiums can remain unchanged unless your compensation policy ties them directly to minimum wage. Document any related decisions in your pay practices guide.

HR Checklist to Be Ready

Update payroll rate tables and earning codes before your first October pay run.
Confirm student rate eligibility logic and how status changes are captured.
Recalculate any salaries near the floor to ensure hourly equivalency remains compliant.
Refresh offer letter templates and job postings that reference pay rates.
Update overtime and public holiday test cases in your payroll system.
Prepare a short employee communication that explains the change and when it will appear on pay.
Brief managers on the student criteria and on how to handle questions.
File and retain evidence of your rate updates for audit purposes.

Employee Communication Template You Can Adapt

On October 1, 2025, Ontario’s minimum wage rates increase. If your rate is affected, the new rate will apply to hours worked on or after October 1 and will appear on the first pay that covers those hours. If you have questions about how this applies to your role, please contact HR or Payroll.

Final Thought

Minimum wage increases are more than a payroll adjustment. They affect compliance, budgeting, job postings and employee communications. HR leaders who prepare early can make the transition seamless and avoid last-minute issues.

Need support updating policies, pay structures or communications ahead of October 1? Contact us to ensure your organization is ready.