As of October 1, several provinces, including Ontario, Prince Edward Island, Manitoba, and Saskatchewan, have raised their minimum hourly wage for workers. In most cases, these increases are tied to inflation. For instance, Ontario’s minimum wage has gone up from $16.55 to $17.20 per hour.
The actual income of a minimum wage earner in Ontario depends on the number of hours they work each week. Statistics Canada data from 2023 shows that the average full-time employee in Ontario works 39.3 hours weekly. Based on this, before taxes and deductions, a worker earning minimum wage can expect to gross $675.96 weekly.
Most employers in Ontario pay their employees bi-weekly. For a full-time worker, this would translate to a gross paycheck of approximately $1,351.92 every two weeks. Annually, with 26 pay periods, a full-time minimum wage worker can expect a gross income of about $35,149.92. After taxes, a person in Ontario earning this salary would take home approximately $29,026 (based on Wealthsimple’s income tax calculator).
Is it Enough to Live On?
This is a crucial question for many newcomers, particularly those who arrive in Canada without a job offer and must quickly find work to support themselves. Securing proof of income is also often necessary to find accommodation.
Cost of Living for Newcomers in Ontario
In Toronto, where 46.6% of the population is made up of immigrants (according to 2021 census data), newcomers often rent before saving enough to buy a home. Here’s an estimate of the cost of living for a single person living alone in Toronto, Canada’s largest city. These costs can vary but provide a general picture.
- Rent for a one-bedroom apartment: $2,452 (as of September 2024, TRREB)
- Groceries: $526.50 per month (numbeo.com)
- Utilities (electricity, heating, cooling, water): $160.44 per month (numbeo.com)
- Phone plan: $56.20 per month (numbeo.com)
- Internet: $69.70 per month (numbeo.com)
- Public transport: $3.30 per trip or $143 for a monthly TTC pass (ttc.ca)
Altogether, these essential monthly costs amount to about $3,407.84, or $40,894.08 per year for a single person living in Toronto. This exceeds the annual gross income of a minimum wage worker by over $5,000, and by more than $11,000 when considering their net income.
There are ways to reduce these costs, such as sharing accommodation, buying discounted groceries, opting for the cheapest phone and internet plans, or walking instead of using public transportation.
Newcomers in Minimum-Wage Jobs
Many newcomers, especially those awaiting recognition of their foreign credentials, may find themselves in minimum-wage jobs temporarily. Government data indicates that 20% of jobs in Canada are regulated occupations requiring certification or licensing. Each province manages its own licensing process, meaning there is no consistent national data on how long it takes newcomers to have their credentials recognized.
During this waiting period, many newcomers work in jobs outside their trained professions, often earning minimum wage or slightly above. A recent Statistics Canada report (2001-2021) highlighted that immigrant workers are increasingly taking on low-skilled jobs that were previously filled by Canadian-born workers, alongside temporary foreign workers (TFWs).
Learn More About Canadian Immigration Opportunities
If you’re considering immigrating to Canada or are currently navigating the process, contact us at Skynet Immigration for personalized guidance and professional support.
