Minimum Wage Increasing October 1, 2020
As many of our members may already be aware, the minimum wage in the Province of Ontario will be increasing on October 1, 2020. Under the Making Ontario Open for Business Act the increase is tied to the Consumer Price Index, and updates the rate of pay for general minimum wage workers from $14.00/hr to $14.25/hour. You can learn more about the increase here: https://www.ontario.ca/document/your-guide-employment-standards-act-0/minimum-wage.
This increase may impact employees and contract workers in condominium environments. Condominium corporations should review the current rate of pay for any employees and ensure that the appropriate adjustment is made. In upcoming budget reviews, adjustments may also be required. The specific impact of the increase related to one full-time employee is as follows:
|Increased wage amount||Hours Per Week||Weeks per year||Total wage increase per year||Employer CPP Contributions (5.25%)||Employer EI Contributions (1.58%)||Total Budgetary Impact per Full-Time Employee|
For contract workers, there may be an allowance within your agreement with the service provider. Should any of their employees be impacted by the increasing minimum wage, depending on the terms of the agreement, they may be eligible to increase costs. We would encourage all condominium corporations to ensure that they review their agreements and be prepared for any adjustments necessary.