As of October 1, Ontario, Prince Edward Island, Manitoba, and Saskatchewan have all raised their legal minimum hourly wage for workers.
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Most of these increases are gradual and linked to inflation. In Ontario, for instance, the minimum wage has gone up from $16.55 to $17.20 per hour.
The average income for someone earning minimum wage typically depends on their weekly working hours. According to 2023 data from Statistics Canada, full-time employees in Ontario work an average of 39.3 hours per week. If all these hours are paid (excluding unpaid breaks), minimum wage employees can expect to earn approximately $675.96 each week before taxes and other deductions.
In Ontario, most employers pay their employees biweekly, meaning that a full-time wage worker will typically earn about $1,351.92 per paycheck. Part-time employees, on the other hand, can expect to earn significantly less.
When considering 26 pay periods per year (which is 52 weeks divided by 2), minimum wage workers can anticipate an approximate gross annual income of $35,149.92.
However, according to Wealthsimple’s income tax calculator, an employee in Ontario earning this average annual salary will take home about $29,026, assuming they have no additional income, investments, or RRSP contributions.
This raises the question: can one survive on a full-time minimum wage job in Ontario? This is particularly relevant for many newcomers, especially those arriving without a job offer, who need to secure employment quickly to support themselves or, in some cases, provide proof of income to assist in finding accommodation.
Cost of Living for Newcomers in Ontario
Census data from 2021 reveals that 46.6% of Toronto’s population consists of immigrants, making it the city with the highest number of newcomers in Canada. Many newcomers tend to rent initially as they save to purchase a home.
Drawing from various sources, here’s an overview of the cost of living for a single person living alone in Canada’s largest city. It’s worth noting that other regions in Ontario and across Canada may be less expensive.
Note: This is an estimate, and actual costs may vary.
- Average rent for a one-bedroom apartment: $2,452 (as of September 2024, TRREB)
- Monthly grocery expenses for one person: $526.50 (numbeo.com)
- Utilities (Electricity, Heating, Cooling, Water): $160.44 (numbeo.com)
- Phone Plan: $56.20 (numbeo.com)
- Internet: $69.70 (numbeo.com)
- Public transport: $3.30 per trip or $143 for a monthly adult TTC pass (ttc.ca)
This results in an estimated monthly cost of essentials around $3,407.84 for a single person living alone in Toronto, which translates to approximately $40,894.08 annually. This amount exceeds the gross average annual income of a minimum wage worker by over $5,000 and is more than $11,000 higher than their net annual pay.
There are ways to lower these costs, such as opting for shared accommodation, taking advantage of grocery sales, selecting more affordable phone or internet plans, and walking instead of relying on public transportation or rideshares.
Newcomers in Minimum-Wage Positions
It is also common for newcomers awaiting the recognition of their foreign credentials to find themselves in minimum wage jobs for a period. Government data indicates that 20% of all occupations in Canada are regulated and require a license or certificate to practice.
Each province has its own licensing authorities for these professions, resulting in a lack of national data on how long it typically takes for newcomers to have their credentials recognized upon arrival in Canada. During this waiting period, many newcomers must accept jobs outside their trained fields, often at minimum wage or slightly above.
A Statistics Canada report from earlier this year highlighted that between 2001 and 2021, the participation of immigrant workers in low-skilled occupations has risen. Along with Temporary Foreign Workers (TFWs), they have filled low-skilled positions that were previously held by Canadian-born workers.
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