Ontario minimum wage from 1 October 2026: 17.95 dollars, no lower rate for servers and what to recalculate

Ontario raises its minimum wage every year on 1 October, linked to inflation. For a restaurant, where labour is a large share of every dollar of sales, the rise matters. This guide covers the 2026 rates, what they mean for servers and students, and how to plan. Check the Ontario government's minimum wage page for the exact rates, since some published lists still show the earlier figures.

What is the Ontario minimum wage now?

The general minimum wage is 17.95 dollars an hour from 1 October 2026, up from 17.60 dollars. The student rate, for students under 18 who work 28 hours a week or less during the school year, or who work during a school break or summer, is 16.90 dollars from 1 October 2026. A student who is 18 or older gets the general rate. Check eligibility for the student rate on the government's page, since the conditions are specific.

Is there a lower rate for servers?

No. Ontario used to set a lower rate for liquor servers, assuming tips made up the difference. That lower rate was eliminated in 2022, and servers and bartenders are now paid the general rate, with tips on top. Tips cannot be used to make up the difference between a lower wage and the minimum.

What does the increase cost you?

A rough method:

1. Take your total paid hours at minimum wage in a normal week.
2. Multiply by the difference between the old and new rate.
3. Add employer costs that rise with wages, such as vacation pay, Canada Pension Plan and Employment Insurance contributions and Employer Health Tax if it applies.
4. Multiply by the number of weeks in your year for a yearly figure.

Many owners find the real figure is higher than the first result, because the people above the minimum expect their pay to move up as well. Run the sum in a spreadsheet with your own hours, and keep it to compare with next year.

How do you manage the pay ladder?

If everyone just above the minimum stays a few cents above it, a minimum wage rise squeezes the ladder flat. A cook with two years' experience will not be happy to earn what a new dishwasher earns. Review pay for experienced staff each autumn, tie increases to responsibility and certification, and communicate clearly. A pay structure that people can see and understand reduces turnover.

What about prices?

Consider a small, regular price rise instead of waiting for a crisis. Work out what share of your costs is wages, then price the rise accordingly. Raise the prices of high-margin items first, and communicate changes calmly. Customers accept modest rises more readily than a surprise jump.

What other rules affect pay in a restaurant?

• Short shifts. Ontario has a minimum-pay rule for an employee who reports for work and is sent home after a short shift, known as the three-hour rule. Check ontario.ca for how it applies and for the exceptions.
• Overtime. The Act sets an overtime threshold in hours per week and a premium rate. Check the current threshold and rate on ontario.ca before you build a schedule.
• Public holidays. Staff may be entitled to public holiday pay, and there are rules for working on one.
• Eating periods. An employee generally cannot work more than five consecutive hours without a 30-minute eating period free from work. It can be split into two shorter periods if you and the employee agree.
• Sick leave. Employees have job-protected sick leave under the Act. Check the current number of days and the rules on evidence.
• Records. Employers must keep time and pay records for the period the law sets, and give pay statements.

These come from the Employment Standards Act. Read the Ministry of Labour's guidance on each before you finalize a schedule.

How can you control hours without hurting service?

• Compare sales by hour with hours worked by hour.
• Schedule the most staff for the peak and the fewest for the slack.
• Cross-train so one person covers two stations.
• Use prep in quiet hours, so the line is faster in busy ones.
• Review it each month.

How do you talk to staff about a wage change?

Tell people early and in plain words. A short note before 1 October that says the new rate, who it affects and what it does to their pay stops rumours. Explain that experienced staff will still be paid above the minimum, and say how you decide raises. If you change schedules or tip arrangements at the same time, explain each separately. Staff who understand the reasons tend to stay, and a restaurant that loses a good cook over a misunderstanding pays far more than the wage rise itself.

What should you do before next October?

1. Watch for the Ontario government's announcement of the next rate.
2. Update payroll and scheduling tools.
3. Recalculate your menu costs.
4. Tell staff in writing about changes.
5. Review the pay of experienced staff.

More guides for your business:

• AODA website rules for Ontario restaurants: who must meet WCAG 2.0 AA and what to fix first
• Ontario's tip law for restaurants: what you can and cannot do with tips under the Employment Standards Act
• Running a restaurant in Niagara, Prince Edward County or Muskoka: planning for peak weekends and the shoulder seasons

More in the Canadian guides for food businesses.