Ontario Minimum Wage Increase: What Employers Need to Know for October 2026.

Ontario employers have an important payroll change coming this fall.

Effective October 1, 2026, Ontario's general minimum wage will increase from $17.60 to $17.95 per hour. The change applies to most employees covered by Ontario's Employment Standards Act (ESA).

For employers, September is a good time to review employee wages and payroll information so everything is ready before the new rate takes effect.

From October 1, 2026 to September 30, 2027, Ontario's general minimum wage will be $17.95 per hour.

Other minimum wage rates are also changing:

• General minimum wage: $17.60 → $17.95/hour
• Student minimum wage: $16.60 → $16.90/hour
• Homeworker minimum wage: $19.35 → $19.70/hour

Ontario's minimum wage rates are adjusted annually based on inflation and new rates take effect on October 1.

Employers shouldn't wait until the first October payroll to make changes.

A few simple steps can help make the transition easier:

• Review current employee wage rates.
• Identify employees affected by the increase.
• Update payroll information before October 1.
• Review your payroll budget for the remainder of the year.
• Communicate wage changes with affected employees.
• Verify the new rates when processing the first applicable payroll.

If a minimum wage change happens partway through an employee's pay period, Ontario treats that pay period as two separate periods for minimum-wage purposes. The applicable minimum wage must be paid for hours worked before and after the October 1 change.

Even a relatively small hourly increase can affect overall payroll costs, particularly for businesses with several employees earning at or near minimum wage.

Employers may want to review upcoming staffing needs, employee hours, payroll budgets, and other labour costs before the new rate takes effect.

Planning ahead can make it easier to incorporate the increase into your business's financial planning.

Payroll changes don't have to create additional stress for your business.

At TandemBooks, we help Ontario employers manage payroll, maintain accurate employee records, and stay organized as payroll requirements change.

Whether you have a small team or a growing workforce, our Payroll Management services can help you prepare for upcoming changes and keep your payroll processes running smoothly.

October 1, 2026 is approaching quickly. Reviewing your payroll now gives your business time to prepare for Ontario's new $17.95 general minimum wage.

Need help getting your payroll ready? Contact TandemBooks to learn how our Payroll Management services can support your business.