Learn about the effects of Ontario’s minimum wage rise for newcomers. Examine living expenses, earnings data, and the difficulties experienced by foreign laborers.

As of October 1, the legal minimum hourly pay for workers has been increased in Ontario, Prince Edward Island, Manitoba, and Saskatchewan. Most of the changes are gradual and based on inflation. For example, the minimum wage in Ontario increased from $16.55 to $17.20 per hour.

The weekly working hours of an individual receiving minimum wage determine their total revenue. Recent data indicates that the average weekly work hours for a full-time employee in Ontario are 39.3 hours. If all hours are paid (excluding unpaid breaks), this translates to a gross weekly income of approximately $675.96 before taxes and deductions.

A full-time minimum wage worker would make about $1,351.92 per paycheck as most firms pay biweekly. Employees working part-time, however, will make a lot less money.

An yearly gross income of around $35,149.92 is what minimum wage earners can anticipate when calculating over a year, assuming 26 pay periods. However, assuming no additional income or investments, an employee receiving this pay would look to take home around $29,026 after taxes, according to an income tax calculator.

This begs the question for newcomers, particularly those without a job offer: Is it possible to make ends meet in Ontario working a full-time minimum wage job? In order to sustain themselves, many immigrants must find work quickly or show proof of income in order to rent homes.

Ontario’s Expense of Living for Newcomers

Toronto is the Canadian city with the largest immigrant population; as of the 2021 census, immigrants made up nearly half (46.6%) of the city’s total population. Many of these people decide to start saving for a future home while renting initially.

This is an approximate list of living costs for an individual living alone in Toronto. There can be cheaper prices in other parts of Ontario or Canada.

• Average rent for a one-bedroom apartment: $2,452 (as of September 2024)
• Monthly grocery costs for one person: $526.50
• Utilities (electricity, heating, cooling, water): $160.44
• Phone plan: $56.20
• Internet: $69.70
• Public transport: $3.30 per trip or $143 for a monthly adult pass

All things considered, the necessary monthly costs for an individual living alone in Toronto come to about $3,407.84, or about $40,894.08 a year. This amount is more than $5,000 above the minimum wage earner’s gross yearly income and more than $11,000 above their net annual income.

Newcomers may want to think about shared living, shopping sales, low-cost phone and internet contracts, or walking instead of taking public transportation as ways to assist manage these costs.

New Hires in Low-Paying Jobs

It is typical for immigrants to work minimum wage employment while their foreign credentials are recognized. According to government data, a little over 20% of Canadian jobs involve a particular license or certification. Journey or $143 for an adult pass each month.

The licensing agencies in each province are independent, hence there is no nationwide schedule for credential recognition. Many immigrants are compelled to work in fields unrelated to their training during this waiting period, frequently for minimum wage or slightly more.

A report made clear that throughout the previous 20 years, there has been a notable increase in the employment of immigrants in low-skilled positions. In addition to temporary foreign labor, immigrants are increasingly taking up low-skill jobs previously held by workers who were born in Canada.