Ontario has implemented a separate minimum wage structure specifically for students under 18 years old. This wage rate is designed to ensure that younger workers, often with less experience, are fairly compensated while balancing employer costs. As the student minimum wage evolves in 2024, it’s crucial for students and employers to understand the wage structure, criteria for eligibility, and upcoming wage increases.
In this guide, we’ll cover everything about Ontario’s student minimum wage in 2024, including who qualifies, how it differs from the general minimum wage, and what to expect with future increases.
What is the Student Minimum Wage in Ontario?
The student minimum wage in Ontario is part of the Employment Standards Act (ESA), which defines different wage rates for specific groups of workers. As of October 1, 2023, the student minimum wage stands at $15.60 per hour. This marks a significant increase from the previous rate of $14.60, providing a pay boost for students under 18 years of age.
For comparison, the general minimum wage for adults in Ontario is $16.55 per hour as of April 1, 2024. The $0.95 difference between the student wage and the general wage reflects the lesser experience and part-time nature of many student jobs.
Who Qualifies for the Student Minimum Wage?
Not all young workers are eligible for the student minimum wage. To qualify for this rate, students must meet the following conditions:
- Under 18 Years Old: The wage is specifically for students who have not yet reached their 18th birthday.
- Work 28 Hours or Less per Week: Students must work a maximum of 28 hours per week while school is in session. This limit ensures that work does not interfere with their education.
- Working During School Holidays or Breaks: Students can work during holidays, weekends, and school breaks and still qualify for the student wage.
Once a student turns 18, or if they exceed the 28-hour weekly work limit, they must be paid at least the general minimum wage of $16.55 per hour.
Why Does Ontario Have a Separate Student Minimum Wage?
Ontario’s student minimum wage is designed with both students and employers in mind. There are several reasons behind this separate wage structure:
- Encouraging Youth Employment: The lower wage incentivizes employers to hire younger, less experienced workers, giving students valuable work experience before they graduate.
- Balancing Work and Education: The 28-hour weekly limit encourages students to prioritize their education while still earning money through part-time jobs.
- Fair Wages for Experience: Younger workers are generally new to the job market and may not yet have the skills or experience that older workers possess. The wage difference reflects this while still ensuring students are paid fairly.
However, this wage system isn’t without its critics. Some argue that the lower wage restricts the earning potential of young workers, while others believe it provides necessary job opportunities that wouldn’t otherwise exist for students.
What Happens If Students Work More Than 28 Hours Per Week?
A key component of Ontario’s student minimum wage is the 28-hour work limit. If a student works more than 28 hours in a week during the school year, they must be paid the general minimum wage of $16.55 per hour for that entire week.
For example, if a student works 30 hours in a week while school is in session, they are entitled to be paid the general wage rate, not the student rate, for all 30 hours. This ensures that students are compensated fairly when their workload increases beyond what is typical for part-time, student employees.
Upcoming Increases in Ontario’s Student Minimum Wage
Ontario regularly reviews and adjusts its minimum wage rates to reflect inflation and changes in the economy. This includes the student minimum wage, which has seen steady increases over the years. The next scheduled increases are as follows:
- October 1, 2024: The student minimum wage will increase to $16.20 per hour.
- October 1, 2025: The wage will rise further to $16.50 per hour.
These increases are part of the province’s ongoing efforts to ensure that all workers, including students, are paid wages that keep pace with the cost of living.
Who Doesn’t Qualify for the Student Minimum Wage?
While many younger workers qualify for the student minimum wage, certain groups are excluded and must be paid the general minimum wage or a different rate. Here are some exceptions:
- Students Over 18 Years Old: Once a student turns 18, they no longer qualify for the student wage, regardless of their school status or weekly work hours.
- Workers Exceeding 28 Hours Per Week: Students working more than 28 hours a week during the school year must be paid the general wage rate for that week.
- Homeworkers: Individuals who are paid based on the number of items they produce (often in manufacturing or crafts) are not subject to the same hourly wage rules.
- Liquor Servers: Workers under 18 who serve liquor and earn tips may be paid a different wage, as is the case with adult liquor servers.
Employers must ensure they adhere to these rules and are in compliance with Ontario’s wage laws.
International Students and the Minimum Wage
As of May 2022, international students studying and working in Ontario are also subject to the 28-hour weekly work limit. This means that even if an international student is under 18, they must follow the same rules for student minimum wage and hours worked during the school term.
How the Student Minimum Wage Benefits Employers and Students
The student minimum wage system in Ontario provides several benefits for both employers and students:
For Employers:
- Cost Savings: The lower wage makes it more affordable for businesses to hire young, part-time workers, especially in entry-level positions.
- Flexible Workforce: Students often seek part-time work during evenings, weekends, and school breaks, providing flexibility for employers to fill gaps in their schedules.
For Students:
- Work Experience: Students gain valuable work experience, which can help them in their future careers.
- Income While Studying: Even at the lower wage rate, students can earn money to help cover expenses while still focusing on their education.
How to Ensure You’re Paid Fairly as a Student Worker
If you’re a student working in Ontario, it’s essential to know your rights regarding wages and work hours. Employers are required by law to verify your student status and ensure that you are paid correctly. If you work more than 28 hours in a week, or if you turn 18, your employer must adjust your pay to reflect the general minimum wage.
Here are some tips to ensure you are paid fairly:
- Track Your Hours: Keep a record of how many hours you work each week to ensure you’re paid correctly if you exceed the 28-hour limit.
- Understand Wage Increases: Stay informed about upcoming minimum wage increases and ensure your employer adjusts your pay accordingly.
- Speak Up: If you believe you’re being underpaid, talk to your employer. If the issue isn’t resolved, you can file a complaint with the Ministry of Labour.
Final Thoughts on Ontario’s Student Minimum Wage
Ontario’s student minimum wage provides a pathway for younger workers to gain valuable job experience while balancing their school responsibilities. Although the wage rate is lower than the general minimum wage, it opens the door for more employment opportunities for students under 18.
With the scheduled increases in 2024 and 2025, students can expect fair wages that keep up with inflation, ensuring they are compensated appropriately for their work. Both students and employers must understand the rules to ensure compliance and fairness in the workplace.
Key Takeaways:
- As of October 1, 2023, the student minimum wage is $15.60 per hour.
- Students must work 28 hours or less during the school year to qualify.
- Upcoming wage increases will raise the rate to $16.20 in 2024 and $16.50 in 2025.
- If students work more than 28 hours in a week, they are entitled to the general minimum wage.