AIS Logo

Your Source for Small Business Solutions

 

Aurora International Services

657 Sandcherry Drive 

Burlington, Ontario L7T 4L8

Phone: 905.525.5385

Fax: 905.525.6451 

 

 

 

 

Home 

Top Nav Bar

 

 

Ontario Minimum Wage is Going Up

Qualifying for Minimum Wage

What is minimum wage?

Minimum wage is the lowest rate an employer can pay an employee. Most employees are eligible for minimum wage, whether they are full-time, part-time, casual employees, or are paid an hourly rate, commission, piece rate, flat rate or salary.

Who is entitled to minimum wage?

Most employees are entitled to at least minimum wage.

There are exceptions to the ESA 's usual rules for certain industries and job categories. Please refer to the chart in the "How Are You Covered by the ESA?" fact sheet for details about industry-specific and job-specific exemptions, and special rules regarding minimum wage.

Does everyone get the same amount of minimum wage per hour?

No. There is a general minimum wage that applies to most employees. But there are other minimum wages that apply to:

  • employees who regularly serve liquor directly to customers or guests in licensed premises
  • students under 18 years of age who work during school breaks or summer holidays, or who work 28 hours a week or less when school is in session
  • homeworkers
  • hunting and fishing guides.

Rights and Responsibilities

What are the current minimum wages for different jobs?

General minimum wage

This rate applies to most employees.

Student wage

This rate applies to students under 18 years of age who work 28 hours a week or less when school is in session, or students employed during a school break or summer holidays.

Liquor servers wage

This hourly rate applies to employees who serve liquor directly to customers or guests in licensed premises as a regular part of their work. Licensed premises are businesses for which a license or permit has been issued under the Liquor License Act.

Hunting and fishing guides wage

The minimum wage for hunting and fishing guides is not an hourly rate. They get a minimum amount for working less than five consecutive hours in a day, and a different amount for working five hours or more in a day--whether or not the hours are consecutive.

Homeworkers wage

Homeworkers are employees who do paid work in their own homes. For example, they may sew clothes for a clothing manufacturer, answer telephone calls for a call centre, or write software for a high-tech company. Note that students of any age (including students under the age of 18 years) who are employed as homeworkers must be paid the homeworker's minimum wage.

The minimum wage rates in each of the above categories and scheduled annual increases are set out below:

Minimum Wage Rate January 1995 February 1, 2004 February 1, 2005 February 1, 2006 February 1, 2007
General Minimum Wage $6.85 per hour $7.15
per hour
$7.45
per hour
$7.75
per hour
$8.00
per hour
Student Minimum Wage $6.40 per hour $6.70
per hour
$6.95
per hour
$7.25
per hour
$7.50
per hour
Liquor Servers Minimum Wage $5.95 per hour $6.20
per hour
$6.50 per hour $6.75
per hour
$6.95
per hour
Hunting and Fishing Guides Minimum Wage $34.25: rate for working less than five consecutive hours in a day;
$68.50: rate for working five or more hours in a day whether or not the hours are consecutive
$35.75

 

$71.50
 

$37.25

 

$74.50

$38.75

 

$77.50

$40 .00

 

$80.00

Homeworkers Wage $7.54 per hour

(110 per cent of the general minimum wage)

$7.87 per hour

(110 per cent of the general minimum wage)

$8.20 per hour

(110 per cent of the general minimum wage)

$8.53 per hour

(110 per cent of the general minimum wage)

$8.80 per hour

(110 per cent of the general minimum wage)

How is minimum wage calculated for employees who earn commission?

If an employee's pay is based completely or partly on commission, it must amount to at least the minimum wage for each hour the employee has worked.

To ensure an employee is receiving the minimum wage, the total amount the employee earned in regular wages over a work week is divided by the number of hours the employee worked in that week. Here's an example. (Note: where overtime hours are worked, the calculation is more complicated.)

A typical case: calculating pay

Janice earned $150, working 25 hours during her work week in March 2006:

  • $150 ÷25 = $6

The minimum wage is $7.75 an hour, then 25 hours at $7.75 is $193.75. Therefore, Janice is owed the difference between her commission pay ($150) and what her employer would have paid for the same number of hours at the minimum wage ($193.75):

  • $193.75 - $150 = $43.75

Janice's employer owes her $43.75

Industry-specific and job-specific exemptions and special rules may apply to some salespeople who earn commission. Please see the chart in the " How Are You Covered by the ESA ? " fact sheet for details.

 

 
Top Nav Bar

Privacy Policy

Send mail to info@aurorainternational.net with questions or comments about this web site.
Copyright © 2001-2008 Aurora International Services