Employers in several Canadian jurisdictions should prepare for upcoming minimum wage increases that will take effect on October 1, 2026. New minimum wage rates will come into force in Ontario, Manitoba, Saskatchewan, and Prince Edward Island, affecting employers across a range of industries.
Businesses with employees in these provinces should review their compensation and payroll practices in advance to ensure compliance with the new statutory requirements and to account for any resulting labour cost impacts.
New general minimum wage rates
|
Province |
New minimum wage |
Previous rate |
|---|---|---|
|
Ontario |
$17.95 per hour |
$17.60 per hour |
|
Manitoba |
$16.40 per hour |
$16.00 per hour |
|
Saskatchewan |
$15.70 per hour |
$15.35 per hour |
|
Prince Edward Island |
$17.30 per hour |
$17.00 per hour |
Provincial details
Ontario
The general minimum wage increases to $17.95 per hour and the student minimum wage increases to $16.90 per hour, both effective October 1, 2026, through September 30, 2027. Specialized rates for hunting/fishing/wilderness guides and homeworkers have also been updated accordingly.
Under section 23.1(4) of the Employment Standards Act, 2000, S.O. 2000, c. 41, Ontario's general minimum wage is adjusted annually on October 1 using a formula tied to the Ontario Consumer Price Index (all items) published by Statistics Canada. The Minister of Labour is required to publish the new rate on a Government of Ontario website by April 1 of each year.
Manitoba
The minimum wage increases to $16.40 per hour effective October 1, 2026.
Under section 7(1) of The Employment Standards Code, S.M. 1998, c. 29, Manitoba's minimum wage is adjusted on October 1 of each year using a formula based on the Manitoba Consumer Price Index (all items) published by Statistics Canada. The adjusted wage is rounded up to the nearest $0.05 increment. If the formula would result in a decrease, no adjustment is made. The Minister must publish the new rate on a government website before April 1 of each year.
Saskatchewan
The minimum wage increases to $15.70 per hour effective October 1, 2026.
Under section 9-1 of The Employment Standards Regulations, 2025, R.R.S., c. S-15.1, Reg. 15, Saskatchewan's minimum wage is adjusted annually for the pay period commencing October 1, using a formula that equally weights the percentage change in the average hourly wage for Saskatchewan and the percentage change in the all-items Consumer Price Index for Saskatchewan, both as published by Statistics Canada.
Prince Edward Island
The minimum wage increases to $17.30 per hour effective October 1, 2026.
Under P.E.I. Reg. EC2026-379, this rate applies to employees to whom section 5 of the Employment Standards Act, R.S.P.E.I. 1988, Cap. E-6.2, applies. This order replaces the previous Minimum Wage Order, P.E.I. Reg. EC2025-326. PEI's minimum wage is set by regulation rather than a CPI-indexation formula.
What employers should do
We recommend that employers with employees in these provinces take the following steps in advance of October 1, 2026:
-
Update payroll systems to reflect the new minimum wage rates on or before October 1, 2026.
-
Review employment contracts to ensure that wage rates comply with the updated minimums.
-
Notify managers and HR teams of the changes to ensure consistent application across all affected locations.
-
Check for specialized rates: Ontario, in particular, has updated specialized minimum wage rates for students, hunting/fishing/wilderness guides, and homeworkers that should also be reflected in payroll.
If a pay period spans October 1, employers should apply the previous rate to the portion of the pay period before October 1 and the new rate to the portion on or after that date.
Read the original article on GowlingWLG.com
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
[View Source]