Ontario, Prince Edward Island, Manitoba, and Saskatchewan all increased their workers' statutory minimum hourly wages starting October 1. Most increases are gradual and indexed to inflation. In Ontario, for example, the minimum wage increased from $16.55 to $17.20 an hour.
The average income of someone earning the minimum wage is usually determined by the number of hours they work per week. According to Statistics Canada's 2023 data, the average actual work hours for a full-time employee in Ontario are 39.3 hours per week. Assuming these are all paid hours (unpaid breaks don't count), this means that a minimum wage worker can expect to earn $675.96 per week in gross income before taxes and other deductions.
Most employers in Ontario pay their employees every two weeks, so the average gross income per paycheck for a full-time employee is $1,351.92. Part-time employees have much lower expectations. If this were expanded to 26 pay periods per year (52 weeks per year divided by 2), a minimum wage worker could expect to earn an average gross income of about $35,149.92 per year.
However, according to Wealth Simple's income tax calculator, an Ontario worker with this average annual salary would have a take-home pay of $29,026 (assuming they have no other income, investments, or RRSPs).
->> Can you survive in Ontario with a full-time minimum-wage job?
This concerns many newcomers, especially those who move without a job offer and need to quickly find work to support themselves, or in some cases, income verification to find housing.
Cost of living for newcomers in Ontario
According to 2021 census data, 46.6% of Toronto's population is made up of immigrants, making Toronto the city with the highest immigrant population in Canada. Newcomers are also more likely to rent after arriving in Canada while saving for a home purchase.
Using information from a variety of sources, we illustrate the cost of living for a single person in Canada's largest city. It may be cheaper in Ontario than elsewhere in Canada. Note: This is an estimate and costs may vary.
Average rent for a one-bedroom apartment: $2,452 as of September 2024 (TRREB).
Monthly grocery costs per person: $526.50
Utilities (electricity, heating, cooling, water): $160.44
Phone plan: $56.2
Internet: $69.70
Public transportation: $3.30 per trip, or $143 for a monthly TTC pass for an adult
This means that the average cost of necessities for a single person living in Toronto is about $3,407.84 per month or about $40,894.08 per year. This is more than $5,000 more than the average gross income of a minimum wage worker and more than $11,000 more than the average net income. There are several ways to reduce these costs: B. Use a shared apartment, shop at supermarkets when they have sales, choose the cheapest phone and internet rates, and choose to walk instead of taking public transportation or rideshares.
First-timers in minimum-wage jobs
The reality is that even newcomers waiting for their foreign qualifications to be recognized often end up working in minimum-wage jobs for a while. According to government data, 20% of all Canadian occupations are regulated occupations that require a license or certificate to work in Canada.
Because each province has its licensing board for these occupations, there is no national data on how long it takes for newcomers to get their qualifications recognized after they arrive in Canada. Meanwhile, these newcomers often have to work in jobs outside the scope of the occupation they were trained in, many of which pay the minimum wage or slightly above it.
Another report released by Statistics Canada earlier this year found that between 2001 and 2021, "the role of immigrants in low-skilled occupations has increased." They have worked with TFWs to fill some of the low-skill jobs that would previously have been filled by Canadian-born workers.
Commentaires