Ontario’s minimum wage rose from $16.55 to $17.60 an hour this October, a modest boost for thousands of workers. But in many parts of the province, that wage still falls far short of what is needed to cover the essentials. In the Greater Toronto Area, the Ontario Living Wage Network (OLWN) calculates a full-time worker needs $27.20 an hour to make ends meet (1).
“There is simply no place in the province where you can work full-time at a minimum wage job even after the increase,” Craig Pickthorne, communications director for OLWN, told CBC News (2).
Don’t Miss
- Want to retire with an extra $1.3M? See how Dave Ramsey’s viral 7-step plan helps millions kill debt and build wealth — and how you can too
- A new nationwide survey of financial leaders warns Canada may face a recession in six months — protect your wallet with these 6 smart money moves ASAP
- Boomers are out of luck: Robert Kiyosaki warns that the ‘biggest crash in history is coming’ — here’s his strategy to get rich before things get worse
The gap between legal minimums and the cost of living translates into real financial stress for families, young adults delaying independence and workers juggling multiple jobs.
Rent is the biggest pressure
According to OLWN, housing costs remain the main driver of living wage increases. “Thirty to 40% of the living wage rate is because of rent. When that goes up, it really has a big influence,” Pickthorne told CTV News (3).
Two of Canada’s most reliable housing data sources show just how sharply rental prices can differ depending on what’s measured. According to the Canada Mortgage and Housing Corporation (CMHC), the average rent for a one-bedroom apartment in the Toronto Census Metropolitan Area (CMA) was $1,715 per month in October 2024 (4). The CMA includes the City of Toronto and surrounding municipalities such as Mississauga, Vaughan and Markham, where rents are typically lower.
By contrast, the Toronto Regional Real Estate Board (TRREB) — which tracks newer and currently listed units, often including condominium rentals in the City of Toronto — reported an average of $2,424 per month for a one-bedroom apartment in Q4 2024 (5).
Experts generally advise households to spend no more than about 30% of income on housing. Using that benchmark, someone renting a one-bedroom at CMHC’s average would need to earn roughly $35 per hour, or about $64,300 a year. Using TRREB’s higher figure, the required income jumps to roughly $51 per hour, or about $104,000 a year — far above Ontario’s minimum wage.
Even outside Toronto, costs are rising. The Bruce–Grey–Huron–Perth–Simcoe region, which stretches from Stratford to Barrie, saw its living wage climb 6.7% to $24.60 an hour (7), partly due to an influx of people leaving the GTA in search of more affordable housing.
These differences matter because CMHC and TRREB are looking at different slices of the rental market, and the numbers they report can change how we see affordability — and what solutions might actually work.
Read more: Here are 5 expenses that Canadians (almost) always overpay for — and very quickly regret. How many are hurting you?
Who is most affected
Living wage data also show significant disparities in earnings. Research by OLWN and the Canadian Centre for Policy Alternatives found 17.3% of Toronto workers earn less than a living wage. Among racialized workers, that rises to 20.1%, compared to 12.1% for non-racialized workers (8).
Women also face a bigger gap, with 20.4% earning below a living wage, versus 14.4% of men. The most vulnerable group is racialized women, of whom 23.4% earn less than a living wage (9).
Practical steps for workers
If you are earning minimum wage, there are ways to manage your finances and improve your situation:
- Know your numbers: Check the OLWN’s living wage calculator (10) to see what is considered a living wage in your region
- Budget strategically: Track your rent, utilities, groceries and transportation, and identify areas to cut costs
- Explore opportunities: Ask employers if they are living wage certified or consider workplaces that pay higher rates
How employers can help
For businesses, paying a living wage can improve morale, reduce turnover and attract talent. The OLWN maintains a list of certified living wage employers across Ontario. Employers that commit to these standards demonstrate they value employee well-being and financial security.
The bigger picture
Ontario’s minimum wage increase is a small step towards helping workers make ends meet, but the numbers show a persistent gap between what people earn and what they need to cover basic expenses. Rent remains the largest pressure, and disparities in wages affect women and racialized workers most acutely.
Understanding the real cost of living — from housing to everyday essentials — is crucial for workers planning their finances. For employers, offering fair, living wages is not just a legal or ethical decision; it directly supports employee stability, retention and well-being. Closing the gap between minimum and living wages is a challenge, but it is central to building a more secure and equitable workforce across Ontario.
What To Read Next
- Ray Dalio just raised a red flag for Americans who ‘care’ about their money — here’s why Canadians should limit their exposure to U.S. investments
- The ultra-rich are pulling back on volatile stocks right now, warns investing legend — here are the 4 assets they’re using to help shield their millions
- I’m almost 50 and don’t have enough retirement savings. What should I do? Don’t panic. Here are 6 solid ways you can catch up
- Here are the top 7 habits of ‘quietly wealthy’ Canadians. How many do you follow?
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
OLWN (1, 10); CBC News (2); CTV News (3, 6, 7); CMHC (4); TRREB (5); CPPA (8), (9)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.