Government working for workers by enhancing wages and take-home pay
As part of the 2021 Fall Economic Statement, the Ontario government will introduce legislation that, if passed, would raise the general minimum wage from $14.35 to $15.00 per hour effective January 1, 2022. Under the proposed changes, the special minimum wage rate for liquor servers would be eliminated and they would be entitled to the general minimum wage. Students under 18, homeworkers and hunting, fishing and wilderness guides would also see an increase in their special minimum wage rates.
Details were shared today by Premier Doug Ford, Monte McNaughton, Minister of Labour, Training and Skills Development and Peter Bethlenfalvy, Minister of Finance.
Liquor servers have previously received below the general minimum wage, based on the belief customer tipping can make up the difference. However, many of these workers have increasingly seen their tips pooled and redistributed among many staff, making it harder for them to make ends meet. If the legislation is passed, liquor servers would be treated more fairly and see an unprecedented 19.5 per cent increase in their minimum hourly wage, as it changes from $12.55 per hour to the harmonized $15 per hour minimum wage.
The Ontario government is introducing legislation to increase minimum wages as the cost of living has increased considerably over the past several months, but wages for many have not kept pace.
Special minimum wage rates are also proposed to increase:
These proposed changes are part of the government’s broader effort to support, protect and attract workers, and make Ontario the top place to live, work and raise a family. The government will release its plan to protect Ontario’s progress against COVID-19 and for building the foundation for the province’s recovery and prosperity in the 2021 Ontario Economic Outlook and Fiscal Review on November 4.