Ontario, PEI, Manitoba, and Saskatchewan Raise Minimum Wage as of October 1. Legal Minimum Hourly Wage Increases Across Four Provinces.
The majority of the most recent hikes in the minimum wage are gradual and based on inflation. For instance, the minimum wage in Ontario increased to $17.20 from $16.55 per hour.
The average weekly income at minimum wage is determined by the number of hours worked. Statistics Canada reports that full-time workers in Ontario put in 39.3 hours a week on average as of 2023. Before taxes and deductions, minimum wage workers might anticipate making $675.96 per week if all of these hours are paid (apart from unpaid breaks). Given that the majority of firms in Ontario pay biweekly, an employee working full-time at minimum wage would make about $1,351.92 every paycheck. Part-time employees, meanwhile, will receive much less.
With 52 weeks divided by two pay periods per year, full-time minimum wage workers can now anticipate a gross yearly income of roughly $35,149.92.
An employee in Ontario making this average annual salary would, assuming no additional income, assets, or RRSP contributions, make $29,026 after taxes, according to Wealthsimple’s income tax calculator.
Can someone in Ontario make ends meet doing a full-time minimum wage job? For many immigrants, especially those who arrive without a job offer and must find employment immediately in order to support themselves or provide proof of income in order to acquire accommodation, this topic is especially pertinent.
Understanding the Cost of Living for Newcomers in Ontario
Based on data from the 2021 census, 46.6% of Toronto’s population is foreign-born, making it the most immigrant-populated city in Canada. When they first get to Canada, immigrants usually rent while they save up for a house.
Draw from several sources, here’s a summary of the cost of living in Canada’s largest metropolis for a single individual living alone. Lower costs might be found in other parts of Ontario and Canada. Please be aware that these numbers are estimates and may differ.
- The average rent for a one-bedroom apartment is $2,452 (as of September 2024, according to TRREB).
- Monthly grocery expenses for one person are approximately $526.50 (as per Numbeo).
- Utilities, including electricity, heating, cooling, and water, cost around $160.44 (based on Numbeo).
- A typical phone plan is priced at $56.20 (according to Numbeo).
- Internet service costs about $69.70 (as reported by Numbeo).
- Public transport fares are $3.30 per trip, or a monthly adult TTC pass is available for $143 (as listed on TTC.ca).
For a single person living alone in Toronto, the average monthly cost of necessities comes to roughly $3,407.84, or about $40,894.08 annually. This is more than $11,000 more than the minimum wage worker’s net average yearly earnings and more than $5,000 more than their gross average annual income.
There are a number of strategies to reduce these expenses, like choosing shared housing, shopping during supermarket deals, selecting more economical phone and internet subscriptions, or walking rather than taking public transportation or ridesharing.
Navigating Life as Newcomers in Minimum-Wage Roles
Many immigrants frequently wind up working minimum-wage jobs while they wait for their foreign qualifications to be recognized. 20% of all jobs in Canada, according to government data, are regulated and call for a license or certification in order to operate.
Since each province oversees its own licensing agencies for these professions, there is no national data on the average time it takes for immigrants’ qualifications to be accepted in Canada. Newcomers sometimes take jobs outside of their trained sectors during this waiting period, many of which pay the minimum wage or slightly above.
Furthermore, a Statistics Canada analysis from earlier this year showed that the percentage of immigrant workers in low-skilled occupations grew from 2001 to 2021. In addition to temporary foreign workers (TFWs), they have replaced individuals who were born in Canada in low-skilled occupations.