Given that employees have up to two years to file a claim, employers should confirm that payroll systems, contracts, and pay practices reflect the most current wage standards.
As of October 1, 2025, several Canadian provinces have officially increased their minimum wage rates. Employers should review their payroll and employment practices to ensure compliance with these updates and to avoid exposure under employment standards legislation.
New Minimum Wage Rates
The following increases are now in effect:
- Ontario – from $17.20 to $17.60 per hour
- Manitoba – from $15.80 to $16.00 per hour
- Nova Scotia – from $15.70 to $16.50 per hour
- Prince Edward Island (PEI) – from $16.00 to $16.60 per hour
- Saskatchewan – from $15.00 to $15.35 per hour
Each province continues to review rates annually, with adjustments typically taking effect on or around October 1 to reflect inflation and cost-of-living increases.
Ontario’s Minimum Wage Update
Ontario’s general minimum wage is now $17.60 per hour, applying to most provincially regulated employees. However, certain categories remain subject to specific rules under the Employment Standards Act, 2000 (ESA), including:
- Students under 18 years of age,
- Hunting, fishing, and wilderness guides,
- Homeworkers, and
- Employees earning commission (whose total compensation must meet or exceed the applicable minimum wage).
Employer Obligations
Employers are required to pay all employees at least the applicable minimum wage. There is no legal obligation to increase wages for employees already earning above the new rate. However, failing to adjust pay for affected employees may result in:
- Complaints filed with the Ministry of Labour,
- Orders to repay unpaid wages, and
- Penalties for ESA violations.
Given that employees have up to two years to file a claim, employers should confirm that payroll systems, contracts, and pay practices reflect the most current wage standards.
Remote Work and Jurisdictional Compliance
As remote work arrangements continue across Canada, it’s important to remember that minimum wage obligations are tied to where the employee performs the work, not where the employer is located. For example, if an Ontario-based company employs a remote worker residing in Manitoba, the Manitoba minimum wage applies. This makes it critical for employers with geographically dispersed teams to review compensation practices on a province-by-province basis.
Key Takeaways for Employers
- Review payroll systems to ensure compliance with the October 1, 2025 increases.
- Understand exemptions, as certain employees may be subject to different wage rules.
- Plan ahead, as minimum wage adjustments are typically announced in the spring and take effect each October.
- Maintain compliance, as employees can claim unpaid wages for up to two years, making regular audits essential.
- Account for remote work and apply the province’s employment standards legislation where the employee performs their duties.
Ensure Your Organization Is Compliant
Minimum wage compliance is just one aspect of your broader obligations under employment standards legislation. Employers should take this opportunity to review all related policies, including overtime, vacation pay, and record-keeping requirements, to ensure full compliance.
For guidance on updating your organization’s pay practices or policies in light of these changes, contact Minken Employment Lawyers (Est. 1990) today at 905-477-7011 or contact@minken.com to connect with our team.
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Please note that this article is for informational purposes only and does not constitute legal advice or opinion.
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