Ontario, Prince Edward Island, Manitoba, and Saskatchewan have all increased the legal minimum hourly wage paid to workers as of October 1.
Most increases are incremental and tied to the rate of inflation. For example, in Ontario, the minimum wage has increased from $16.55 an hour to $17.20.
The average income of a person making minimum wage generally depends on the number of hours they work each week. Statistics Canada data for 2023 shows that the average actual hours per week worked by a full-time employee in Ontario is 39.3. Assuming these are all paid hours (not accounting for unpaid breaks), this means that before tax and other deductions, employees making minimum wage can expect to gross $675.96 each week.
Most employers in Ontario pay their employees every two weeks, so on average, a full-time wage worker will gross $1,351.92 per paycheck. A part-time employee can expect much less.
If that is expanded to 26 pay periods a year (52 weeks a year divided by 2), minimum wage employees can now expect on average a gross income of approximately $35,149.92 a year.
However, according to Weathsimple’s income tax calculator, an employee in Ontario with that average annual salary will net (take home) $29,026 (assuming they have no other income, investments or an RRSP).
So, can you survive on a full-time minimum wage job in Ontario? This is relevant to many newcomers, especially those who immigrate without a job offer and need to find work quickly to support themselves or, in some instances, require proof of income to help them find accommodation.