Labor Minister Monte McNaughton made the announcement Tuesday afternoon, saying the pay rise would take effect in early autumn.
That would bring Ontario’s minimum wage to $ 15.50 an hour on October 1st.
In January, the minimum wage rose from $ 14.35 an hour to $ 15 an hour. The same salary was set for drink servers and employees at app-based concerts.
McNaughton said the increase would help workers keep up with rising costs amid inflation.
“This eight percent increase in one year will help workers keep up with rising inflation. It is another way in which we fight for everyday people and offer real positive change for more than 700,000 employees,” he said.
The Progressive Conservatives say the planned rise in the minimum wage is linked to the Consumer Price Index and will continue to rise with each fall in Ontario inflation – something the government is legislating to do.
Officials say those who are paid the minimum wage, who work 40 hours a week, will see their pay rise by $ 1,768.
The last time the minimum wage was raised was in October 2021, when the wage was raised from $ 14.25 to $ 14.35.
Ontario Prime Minister Doug Ford initially withdrew his $ 15 minimum wage in 2018 after being elected to the post. He then claimed it would be too expensive for businesses, opting to increase it by 35 cents.
When he announced a salary increase of almost $ 1 in November 2021, the prime minister cited the pandemic as the main reason why the wage freeze would end.
“Things were very different in 2018,” he told reporters.
Affordability has already proved to be a key electoral issue, with almost all political parties promising to raise the minimum wage if they take office.
The Ontario Liberals promise $ 16 an hour by 2023, along with 10 paid sick days if they win in June. The NDP has also promised a minimum wage of $ 16 from October 1, but has said it will gradually raise it to $ 20 by 2026.
According to a 2021 report by the Ontario Living Wage Network, people living in Toronto must make at least $ 22.08 an hour to afford basic necessities such as food, clothing, shelter, transportation, childcare and medical care. among other needs. The lowest living wage reported in the report was $ 16.20 in Sault Ste. Mary.
Elections in Ontario are scheduled for June 2.