Increased living costs bring increased hourly rates for minimum wage workers
All minimum wage earners in Ontario received a slight increase in their earnings, as minimum wage increased from $11.25 to $11.40 on Oct. 1, 2016. This increase was brought on by the provincial government’s ongoing efforts to improve the living conditions of Ontarians.
2016 marks the third consecutive year that the minimum wage has seen an increase, while Ontario’s wages rival among the top in the country. Due to these rises, Ontario’s minimum wage workers make around $2392 more per year, than they did three years ago.
“…minimum wage increased from $11.25 to $11.40 on Oct. 1, 2016.”
In a news release, Minister of Labour Kevin Flynn commented on the reason behind the rise: “Our government understands that costs of living increase every year. In order to help families keep up, we’ve tied the minimum wage to increases in inflation, putting more money into the pockets of Ontario workers each year.”
The raise in minimum wage is based on Ontario’s Consumer Price Index, which is released each month by Statistics Canada, to estimate the cost of living in Ontario. It compares the costs of goods and services over time, and is used by Ontario’s Ministry of Labour to adjust incomes in order to suit the expenses of average citizens. The raise in wages reflects the recent hikes in living costs.
“…costs of living increase every year. In order to help families keep up, we’ve tied the minimum wage to increases in inflation…”
Ontario was not the only province to see a raise in minimum wages this October. Alberta, Prince Edward Island, and Saskatchewan all received a climb in wages, with Alberta’s minimum wage raised from $11.20 to $12.20, P.E.I.’s from $10.50 to $11.00, and Saskatchewan’s from $10.50 to $10.72.
Alberta’s NDP government has also recently announced that they were focused on bringing the minimum wage up to $15.00 an hour by 2018. This news has Ontario’s New Democratic Party insisting the provincial Liberal government do the same. However, Flynn explained that Ontario’s minimum wage is currently one of the highest in the country and assures that the government will re-examine the issue in two years.
Photo by Heather Gilmore.