Ontario increases its minimum wage for newcomers. Ontario, along with three other provinces, i.e., Prince Edward Island, Manitoba, and Saskatchewan, increased the legal minimum hourly wage paid to workers as of October 1.
Most increases are incremental and tied to the rate of inflation. For example, in Ontario, the minimum wage has increased from $16.55 an hour to $17.20.
In addition, the average income of an individual making minimum wage usually depends upon the number of hours they work every week. Statistics Canada data from last year shows that the average actual hours per week worked by a full-time employee in Ontario is 39.3. Assuming these are all paid hours, this means that before tax and other deductions, employees making minimum wage can expect to gross around $675.96 every week.
Most employers in Ontario pay their employees every two weeks; thus, on average, a full-time wage worker will gross over $1,351.92 per paycheck. On the other hand, a part-time employee can expect much less.
If that is expanded to 26 pay periods a year, minimum wage employees can expect an average gross income of approximately $25,149.92 a year.
However, according to Weathsimple’s income tax calculator, an employee in Ontario with that average annual salary will net $29,026.
Can you survive on a full-time minimum-wage job in Ontario? This question is relevant to many newcomers and immigrants, specifically those who immigrate without a job offer and need to find work quickly to support themselves. In some instances, they require proof of income to help them seek accommodation.
Cost Of Living For Newcomers In Ontario
Ontario increases its minimum wage for newcomers. Census data from 2021 found that 46.6% of Toronto’s population is made of immigrants and newcomers, making it the city in Canada with the most newcomers. Newcomers are also more likely to rent when they first come to Canada while they save to purchase a home.
Pulling information from a few different sources, below is some data regarding the cost of living in Canada’s largest city for a single person living alone. Other locations in Ontario and Canada might be less expensive.
Note: This is an approximation and cost could 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)
This demonstrates that the average cost of essentials is over $3,407.84 every month for a single individual living alone in Toronto, or $40,894.08 per year. This is $5,000 more than the gross average annual income of an individual making minimum wage or over $11,000 more than their net yearly average pay.
There are ways to reduce this cost, such as sharing accommodation, shopping grocery sales, selecting the least expensive phone or internet plans, or choosing to walk instead of using public transit or ride-shared.
Newcomers In Minimum Wage Roles
Ontario increases its minimum wage for newcomers. Well, it is often a reality for newcomers who are waiting to have their foreign credentials recognized to find themselves in minimum-wage positions for a time. Government data states that 20% of all professions in Canada are professions that require a license/ certificate to work in Canada.
Every province has their own licensing authorities for these professions, which implies that there is no national data for how long it will take newcomers to have their credentials recognized when they arrive in Canada. In the meantime, these newcomers will often need to work in jobs that fall outside the scope of their trained professions, many of which are paid minimum wage or slightly above.
In fact, another Statistics Canada report earlier this year found that between 2001 and 2021, the role of immigrant workers in low-skilled professions has increased. Together with temporary foreign workers, they filled some of the low-skilled jobs that previously would have been taken by Canadian-born workers.
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