Ontario Set to Implement Major New Laws in October 2025
Ontario is preparing for significant legislative and economic changes that will impact workers, employers, and businesses across the province starting October 2025. From a minimum wage increase to the end of temporary federal supports and a looming business tax repayment deadline, these updates are expected to influence wages, job security, and operational costs across the province.
Here is a detailed breakdown of the three key changes and their implications.
Key Highlights of Ontario’s New Laws Effective October 2025
- Minimum wage increase to $17.60 per hour, offering higher pay for workers but raising concerns about whether the hike keeps up with rising living costs.
- End of temporary Employment Insurance (EI) measures that had provided additional benefits to workers affected by U.S. trade tariffs.
- Repayment deadline for deferred provincial taxes, creating a cash flow challenge for many Ontario businesses.
1. Ontario’s Minimum Wage to Rise to $17.60 per Hour
Starting October 1, 2025, Ontario’s general minimum wage will increase from $17.20 to $17.60 per hour, reflecting a 2.4% adjustment tied to the Ontario Consumer Price Index (CPI).
- Impact on Full-Time Workers: A worker earning 40 hours per week will earn an additional $1,664 annually before taxes, providing a modest buffer against rising costs of rent, groceries, and transportation.
- Comparison to Past Rates: Since 2018, Ontario’s minimum wage has steadily risen from $14, keeping pace with inflation and now placing Ontario second only to British Columbia’s minimum wage of $17.85 (as of June 2025).
- Living Wage Gap: Advocacy groups argue the increase is still below the living wage needed in urban centres such as Toronto and Ottawa, estimated between $20–$25 per hour.
Minimum Wage Categories
| Category | Current Rate | New Rate (Oct 1, 2025) |
|---|---|---|
| General Minimum Wage | $17.20/hour | $17.60/hour |
| Student Minimum Wage (under 18, ≤28 hrs/week) | $16.20/hour | $16.60/hour |
| Hunting/Fishing/Wilderness Guide (less than 5 hours) | $86.40/day | $88.05/day |
| Hunting/Fishing/Wilderness Guide (5+ hours) | $172.80/day | $176.15/day |
Employer Obligations: Employers must update payroll systems to reflect the new wage for all hours worked after October 1. Failing to comply can lead to fines, back-pay claims, and penalties under Ontario’s Employment Standards Act (ESA).
2. End of Temporary EI Measures on October 11, 2025
Temporary federal Employment Insurance (EI) measures introduced to protect workers from U.S. trade tariffs will expire on October 11, 2025. These measures, introduced in March 2025, included:
- Waiver of One-Week Waiting Period: Workers temporarily avoided the usual one-week waiting period before receiving EI benefits. This will end, meaning claimants must again wait a week before payments begin.
- Severance Payment Exemptions: Severance and vacation pay were temporarily excluded from EI benefit calculations, allowing claimants to keep more income. This exemption will end, and severance will again reduce EI payouts.
- Regional Unemployment Adjustments: Eligibility thresholds were temporarily lowered by increasing local unemployment rates by 1%, reducing required qualifying hours and increasing benefits. These adjustments will end, potentially making it harder to qualify for EI benefits.
Impact on Workers:
- Claimants should file EI applications before October 11 to take advantage of the temporary benefits.
- Workers in sectors heavily affected by U.S. tariffs, such as steel, automotive, and manufacturing, will be most impacted.
3. $9 Billion Provincial Tax Deferral Deadline on October 1, 2025
In April 2025, Ontario introduced a $11 billion relief program, including $9 billion in deferred provincial taxes to help businesses manage tariff-related economic pressure.
- Deadline: All deferred provincial taxes must be repaid by October 1, 2025, or penalties and interest charges will apply.
- Taxes Affected: The deferral covered 10 key taxes, including the Employer Health Tax, Gasoline Tax, and Mining Tax.
- Business Impact: Small and medium-sized businesses (SMEs), particularly in manufacturing and export-driven sectors, may face significant cash flow challenges as they repay the deferred amounts.
Recommended Actions for Businesses:
- Conduct a cash flow assessment to ensure readiness for repayment.
- Explore provincial and federal funding options, such as the Protect Ontario Account and WSIB surplus rebates, to help offset the financial burden.
Broader Economic Implications
These October changes are part of a wider economic landscape in Ontario:
- Rising costs of living continue to challenge workers, despite minimum wage hikes.
- Businesses face higher labour costs and must prepare for tighter financial conditions as government supports expire.
- Future legislation, such as Bill 30 (Working for Workers Seven) and the Digital Platform Workers’ Rights Act, will continue to reshape employment and business practices heading into 2026.
Quick Reference Table – Key Dates and Changes
| Change | Effective Date | Key Details | Impact |
|---|---|---|---|
| Minimum Wage Increase | Oct 1, 2025 | General wage rises to $17.60/hour; other categories adjusted | Higher pay for workers, higher payroll costs for employers |
| EI Temporary Measures End | Oct 11, 2025 | End of waived waiting period, severance exemptions, and regional adjustments | Reduced EI benefits and tougher qualification |
| Provincial Tax Repayment | Oct 1, 2025 | Deadline to repay $9B in deferred provincial taxes | Financial pressure on businesses, risk of penalties |
Key Takeaway
Ontario residents, workers, and businesses should prepare now for these upcoming changes. Workers can expect slightly higher wages but must plan for reduced EI benefits, while businesses should ensure they are ready to meet their deferred tax obligations to avoid penalties.
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