Ontario Raising Minimum Wage

Good morning, this week the Liberal government of Ontario announced it was going to raise minimum wage to $15 a hour by January 1st 2019. They seem to be following suit of a bunch of u.s states. While this may be great if you make minimum wage I believe this to be a horrible idea.

Most minimum wage jobs are “starter” jobs and are not meant to be careers. They generally should be for high school kids just dipping their feet into the working life. I know sometimes you see seniors working these jobs as well but I feel they do it for a easy job to supplement their income as well as give them something to do. If you are 30-40 and working a minimum wage job ask yourself why? There are a lot of higher paying jobs out there. Obviously people like servers and bartenders are different as they get cash tips

minimum wage

Unfortunately society these days is becoming weak and always give into the ones who whine/ complain the most. Look what happened at the Mcdonald’s once people demanded 15$ a hour for their job. Seems to be less people working there now and they became more automated. (atms basically can take your order now, eliminating the need for one or 2 staff members)

So how is Ontario implementing this increase? They plan on raising minumim wage by 32 per cent in a little more then a year and a half

  • 11.40 – current min wage
  • 11.60 by October 1, 2017 (part of the previous raises, very minor)
  • 14 – Jan 1, 2018
  • 15 – Jan 1, 2019

I really believe the only one’s who are really going to benefit from this increase is the government. They are not stupid they will take as much as they can. By raising minimum wages this much it will most likely force people into a higher tax bracket therefore increasing their taxes.

Oh but Rob, the people are making more money. They can afford more. Really? Every minimum wage job just increased 32%. or did it?? No it didn’t. Not to a employer we have to pay all the additional stuff based around the employee’s salary

Canada Pension Plan

Employers contribute to your c.p.p as well. If your employee makes between $3,500-$55,300. You pay %4.95 of their income to c.p.p. If they make over 55,300 you only need to pay the 4.95% on 55,300 as that is the cap.

Holiday Pay

Everyone likes free money on their holiday but this is a percentage of your salary as well.

WSIB – Workplace Safety Insurance Board

This is a percentage of the employees salary that you have to pay as well. There are different rates based on the profession.

E.I Premiums

Oh that unemployment you might claim one day. 1.63% of someones salary up to 51,300. For example if you make over 51,300 a year, your employer pays 1,170.76 in E.I premiums


So we can see the true cost to employers is over 32%. Right now we hire people who are looking for a temporary job during their college break for 15$ a hour if they have no experience. Of course by 2019 we cant be paying that, its hard work and there has to be a premium over a minimum wage job so they will most likely get 17$ a hour. Now what is that guy who has worked for us a year or 2 making 18$ a hour gonna say? Hes gonna want a raise too! He deserves to make a premium over the new guy. Obviously this will increase the price of every job.

Some companies with small profit margins probably wont be able to compete with international competition and with our sky high hydro rates as well. They might just pack up and move to another country or province that lets them stay competitive. So industrys might relocate and companies will adapt and basically hire less people. (like Mcdonald’s did with their computer ordering systems) You thought the lack of people at check out till’s at walmart was bad before? haha


As you can see its a never ending cycle, and clearly this gets passed down to the customer. Unfortunately for the people making quite a bit more then minimum wage, you probably wont see a raise in anything but all your expenses from a loaf of bread, a night at the movies all the way up to your nice landscaping job =) Another reason to add another passive income source!

If you voted Liberals last election thanks…………………

10 Responses

  1. Doug says:

    I agree 100 percent. The only thing it benefits is the government more tax dollars. Then they spend it on worthless things. Lots of people will end up worse off than before.
    If a company wants to give raises let them. At 15.00 minimum wage I would have to get a job as I couldn’t afford the increases in prices on stuff

  2. Matthew says:

    I would like to state that I make more than minimum wage but less than $15 so this plan to boost minimum wage will help put more money in my pocket. So as a person who will benefit I support it somewhat. On the flip side I understand what businesses are going to be going through and that isn’t good. The added expenses are going to force some businesses to reduce staff or close all together. It sounds like you are a business owner or a supervisor? I can certainly understand your point of view. I just have to ask where are all these high paying jobs you say are available? Where I live it is extremely hard to find a job that pays more than $14 per hour. I agree that the Gov’t will definitely benefit from this, this is also an election stunt the Liberals are looking for votes. I hope the Liberals get booted from office as well. Thank you for sharing your thoughts on this issue. Take care

    • Hey Matt. Yeah I don’t own it it’s my dad business but have been doing it 18 years and probably will take over. What do you do? Almost every construction job pays over 15 a hr.I’m in the hamilton peel area and just looking on kijii there is tonnes of work out there. Well glad to heAR you will benefit from it but it’s 2 years away you should plan to make more by then. Of course if your super remote then the situation is different. I agree it’s another ploy to get some votes. Altho I got some email from hydro one yesterday that they want to increase the rates so we will see how the Liberals attempt to lower hydro will do.

  3. dividendgeek says:

    I am torn as to what the correct solution is. I totally agree with your view points, but I also want every human to have a recent standard of living (even with a burger flipping job). But, it will have an overall effect of pushing up wages … which might or might not be good for the economy. Social concepts such as minimum wages are deployed with best intentions, but sure there are going to be people who will smooch of the system. Nothing we can do about it. I am a Libertarian.

  4. Leo T. Ly says:

    Based on what I see, this is a tactic that the government is using to buy votes. I am not against people making a living wage, but I think that they need to earn it rather than getting it for free. This may seem harsh, but I don’t believe in giving free ride to people.

  5. Vivianne says:

    I don’t want to the minimum wage to increase, as I think it’s prevent the youth from getting the beginner job that they need.

    On the second hand, I was reading an article that youth unemployment is way high, it’s because their parents didn’t want them to work minimum wage. I think the mentality has shift a lot.

    I started working in the family when I was 8-9 years old.

    On business perspective, I can’t even hire a guy to do a decent job nowadays, as they all expecting $20/hr and still do crappy job, that I had to go behind and clean up or fix up, or finishing up. So, wage increase doesn’t solve my small business problem.

Id love to Hear What You Think

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