Ontario, Prince Edward Island, Manitoba, and Saskatchewan have all raised the legal minimum hourly wage for workers as of October 1.
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Most of these increases are gradual and linked to the inflation rate. For instance, in Ontario, the minimum wage has risen from $16.55 to $17.20 an hour.
A person’s average income at minimum wage typically depends on their weekly working hours. According to 2023 data from Statistics Canada, the average actual hours worked per week by a full-time employee in Ontario is 39.3. Assuming these are all paid hours (not factoring in unpaid breaks), employees earning minimum wage can expect to gross approximately $675.96 each week before taxes and other deductions.
Most employers in Ontario pay their employees biweekly, meaning a full-time wage worker will typically gross $1,351.92 per paycheck. In contrast, part-time employees can expect to earn significantly less.
When this is calculated over 26 pay periods a year (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 other income, investments, or RRSP contributions.
So, is it possible to live on a full-time minimum wage job in Ontario? This question is particularly relevant for newcomers, especially those who arrive without a job offer and need to find work quickly to support themselves or, in some cases, provide proof of income for housing.
Cost of Living for Newcomers in Ontario
Census data from 2021 revealed that 46.6% of Toronto’s population consists of immigrants, making it the city with the highest number of newcomers in Canada. Many newcomers also tend to rent initially as they save for a home.
By gathering information from various sources, we can outline the cost of living in Canada’s largest city for a single person living alone. Other areas in Ontario and across Canada may be more affordable.
Note: The following figures are approximations and may vary.
- Average rent for a one-bedroom apartment: $2,452 as of September 2024 (TRREB)
- Monthly cost of groceries 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)
These expenses add up to an average of approximately $3,407.84 per month for a single person living alone in Toronto, which translates to $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 above their net annual income.
There are several strategies to help reduce these costs, such as:
- Sharing accommodation
- Taking advantage of grocery sales
- Opting for the most affordable phone and internet plans
- Walking instead of using public transportation or rideshares
Newcomers in Minimum-Wage Positions
It’s 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, requiring a license or certificate to practice.
Each province has its own licensing authorities, meaning there’s no national data on how long it takes for newcomers to have their credentials recognized upon arrival. In the interim, many newcomers work in positions outside their trained professions, often earning minimum wage or slightly more.
In fact, a recent Statistics Canada report noted that from 2001 to 2021, the role of immigrant workers in low-skilled occupations has increased. Along with temporary foreign workers (TFWs), they have filled many low-skilled positions that were previously held by Canadian-born workers.
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