Minimum wage has been on an upward trend. Which is great news for the roughly 1.57 million Canadians earning minimum wage (yippee!). The past few years have seen a renewed interest in minimum wage focusing on issues like fairness, reducing earnings inequality, and fighting poverty.
On October 1, 2020 the General Minimum Wage in Ontario will increase from $14.00 to $14.25. Here are some things to look out for on your upcoming pay slip.
1. Know Your Category
This table shows how the various categories of minimum wage will change:
https://www.ontario.ca/document/your-guide-employment-standards-act-0/minimum-wage
While the general minimum wage is increasing to $14.25, you might not fall under this category. Here are two common categories that employees fall under:
Are You A Student?
This rate applies to students under the age of 18 who work 28 hours a week or less when school is in session, or work during a school break or summer holidays.
Are You A Liquor Server?
This hourly rate applies to employees who, as a regular part of their employment, serve liquor directly to customers, guests, members or patrons in licensed premises and who regularly receive tips or other gratuities as a part of their work.
“Licensed premises” are businesses for which a licence or permit has been issued under the Liquor Licence Act.
2. Know Your Pay Cycle
While minimum wage increases on October 1, 2020, when it begins to show up on your pay slip can be different, depending on your employer.
At minimum, you are entitled to the new minimum wage starting at 12:01am on Thursday October 1, 2020. Here are two common ways this works in practice.
(a) Your Pay Period Is Split
This means that your pay slip will record two different wage rates. One including hours worked up until October 1, 2020 at the previous minimum wage. And another for hours worked after October 1, 2020 at the new minimum wage.
(b) Your Pay Period Is NOT Split
In this instance, your employer will credit you at the new minimum wage rate for the entire pay period that includes October 1, 2020 (yay!).
What Is a Pay Cycle?
Your pay cycle (or pay period) is the duration of days that are captured in each pay cheque.
Your pay cycle can have many different legnths. But the most common is two calendar weeks. Which means you get paid 26 times per year (every two weeks).
On your pay slip, look for the “Pay Begin Date” and “Pay End Date” (or something similar) to determine your pay cycle (or the days that are included in your pay cheque). These are almost always different than (and come before) the “Pay Date”.
Have a great week everyone! What you’re going to do with the additional money in your pocket? Comment below to tell us!
