Introduction
Ontario, like many other regions, has established a minimum wage that employers must pay their employees. However, there is a separate minimum wage rate for students who are employed part-time or during the summer months. This rate is known as the “Student Minimum Wage,” and its purpose is to provide students with an opportunity to gain work experience while earning a fair wage.
In this article, we will delve into the details of what is student minimum wage in Ontario is, how it differs from the regular minimum wage, who is eligible to receive it, and the pros and cons of this wage rate. We will also examine the impact of student minimum wage on both students and employers and whether it is considered fair or not.
Overview of Ontario’s Minimum Wage
The minimum wage in Ontario is $15.50 /hour. And now, Ontario’s minimum wage is set to increase from $15.50 per hour to $16.55 per hour on October 1, 2023, which is a 6.8% pay raise for workers earning the minimum wage.
This minimum wage increase will result in a pay increase of nearly $2,200 annually for a worker making the general minimum wage and working 40 hours per week. In 2022, 942,400 workers were earning $16.55 per hour or below, with the majority of them being women.
This increase builds on the government’s work to make Ontario the best place to live, work, and raise a family.
Eligibility Criteria for Student Minimum Wage
To be eligible for the student minimum wage in Ontario, you must be under the age of 18 and work 28 hours a week or less when school is in session or during school breaks or summer holidays.
Additionally, you must be enrolled in school full-time, with a secondary or post-secondary program that results in a diploma, certificate, or degree as your primary focus
To be eligible for the student minimum wage, you must meet the following criteria:
- You must be enrolled in an educational institution and be pursuing a full-time course of study.
- You must not have reached age 18 by December 31 of that year.
What is Student Minimum Wage in Ontario?
According to the Ontario government website, the current student minimum wage in Ontario is $14.60 per hour. 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.
Even though, students are entitled to the general minimum wage if they work more than 28 hours per week while classes are in session.
Differences Between Student Minimum Wage and Regular Minimum Wage
There are some differences between the student minimum wage and the regular minimum wage. In Ontario, there are some key differences between the student minimum wage and the regular minimum wage.
Here are some of the main differences:
- Age: The student minimum wage applies only to students who are under the age of 18. The regular minimum wage applies to all workers who are not in a specific exempt category.
- Hours worked: Students who work 28 hours per week or less during the school year or school break periods are eligible for the student minimum wage. Workers who work more than 28 hours per week are entitled to the general minimum wage.
- Wage rate: As of now, the student minimum wage in Ontario is $14.60 per hour, which is slightly lower than the general minimum wage of $15.50 per hour.
- Eligibility: To be eligible for the student minimum wage, students must be enrolled in a full-time program of study that leads to a diploma, certificate, or degree, and education must be their primary focus. There are no such eligibility requirements for the general minimum wage.
Both students and employers need to be aware of these differences to ensure that workers are paid correctly and fairly according to Ontario’s employment standards.
Pros and Cons of Student Minimum Wage
Here are some potential pros and cons of the student minimum wage:
Pros:
- Reduced labor costs for employers: Since the student minimum wage is lower than the general minimum wage, employers may choose to hire more students, which could reduce labor costs for the business.
- Opportunity for students to gain work experience: The student minimum wage may make it easier for students to find employment, which could help them gain valuable work experience and develop new skills.
- The incentive for students to stay in school: By offering a lower minimum wage for students, it may encourage them to stay in school and focus on their education, rather than dropping out to work full-time at a higher wage.
Cons:
Financial hardship for students: Even though the student minimum wage is lower than the general minimum wage, it may still be difficult for students to make ends meet with the cost of living and tuition fees, especially if they work fewer hours.
- Limited opportunities for non-students: Since the student minimum wage only applies to students, it may limit job opportunities for non-students who are seeking employment.
- Potential for wage discrimination: Some employers may try to take advantage of the lower wage rate and only hire students, which could lead to wage discrimination against non-students.
- Difficulty in balancing work and school: Students who work may find it challenging to balance their work and school responsibilities, which could negatively impact their academic performance.
It’s important to note that the pros and cons of the student minimum wage may vary depending on individual circumstances and perspectives.
Impact of Student Minimum Wage
The student minimum wage in Ontario has recently increased to $14.60 per hour, up from its previous rate of $14.10 per hour. However, students who work more than 28 hours a week while school is in session are eligible for the general minimum wage, which is currently set at $16.65 per hour. This means that students who work fewer than 28 hours a week will receive a lower wage than those who work more hours or those who are not students.
While this increase in the minimum wage may benefit students who are working part-time, it may also result in increased costs for employers and potentially reduced hours or job opportunities for students.
Changes in Student Minimum Wage over Time
The student minimum wage has undergone several changes over time in various regions.
In Ontario, Canada, the student minimum wage was introduced in 1995, and it was set at 80% of the general minimum wage. In 2003, the student minimum wage was increased to 85% of the general minimum wage, and in 2010, it was increased to 90% of the general minimum wage. Then, in 2018, the student minimum wage was increased to $13.15 per hour, which was a 6.4% increase from the previous year. The student minimum wage continued to increase annually until it reached $14.10 per hour in 2020. In 2021, it was increased again to $14.60 per hour, and it is set to increase further to $15.60 per hour in 2023.
In other regions, such as the United States, the student minimum wage is not a separate category, but rather, students are subject to the same minimum wage laws as other workers. However, some states have lower minimum wage rates for workers who receive tips, which may include some student workers.
Overall, the student minimum wage has changed over time in response to economic conditions and political decisions, and it continues to be a topic of debate and discussion.
Conclusion
Student minimum wage is an important issue to consider when setting up your business, especially if you have employees who rely on it. The Canadian Centre for Policy Alternatives has developed a tool that can help you determine the amount of student minimum wage in Ontario today and how it will change going forward.
FAQs on what is student minimum wage in Ontario
1. What is the 3 hour rule in Ontario?
You can still be entitled to compensation for 3 hours of work even if your shift is less than 3 hours. According to the “3-hour rule,” if your employer asks you to labor for less than 3 hours, they must pay you for those 3 hours.
2. What is the wage rate in Ontario for international students?
The typical annual wage for overseas students in Canada is $60,174, or $30.86 per hour. Most experienced workers earn up to $76,996 per year, while entry-level occupations start at $50,603 annually.
3. How many hours can a student work a day in Ontario?
In the usual academic sessions or semesters, a student can work 20 hours a week as the maximum. As long as the student continues to adhere to the terms of the study permit, they are permitted to perform more than one job to make up these hours.
4. Why do students get paid less Ontario?
The government initially implemented the student minimum wage because they thought it would “enable the employment of younger folks.” Employers would be encouraged to recruit students even though they have less work experience than older candidates because of their cheaper salaries.
