Restaurant Labour Costs in Ontario
Ontario’s general minimum wage is $17.60 an hour until 30 September 2026, rising to $17.95 on 1 October. A student minimum of $16.60 applies to students under 18 working 28 hours a week or less during term or during school holidays, and that rises to $16.90 on the same date. Ontario removed its separate liquor server rate some years ago, so there’s no lower tipped wage.
Figures verified July 2026
Statutory rates
| Rate | Per hour | Source |
|---|---|---|
| General minimum wage1 | C$17.60/hr | Government of OntarioUpdated 1 April 2026 |
| Student minimum wage2 | C$16.60/hr | Government of OntarioUpdated 1 April 2026 |
| Homeworker minimum wage3 | C$19.35/hr | Government of OntarioUpdated 1 April 2026 |
1 In force to 30 September 2026. Rises to $17.95 on 1 October 2026.
2 Students under 18 working 28 hours a week or less in term, or during school holidays. Rises to $16.90 on 1 October 2026.
3 Rises to $19.70 on 1 October 2026.
Next scheduled change: 1 October 2026. Ontario’s general rate rises to $17.95 on 1 October 2026, indexed to the Ontario Consumer Price Index.
On role-level pay data
We haven’t published median hospitality pay by role for Ontario, because we haven’t found an official Canadian source publishing it in a form we’d cite. The statutory rates above come from the Ontario Employment Standards Act guide and are straightforward to verify.
From an hourly rate to a labour cost percentage
The rates above are what you may not pay below. What an hour costs you is larger, once the on-costs below are added, and the labour cost percentage calculator will turn the two halves into a figure you can compare. The prime cost calculator then tells you whether that number and your food cost together leave room for rent and profit.
Tips and tip handling
Ontario applies the general minimum wage to servers; the separate lower liquor server rate was eliminated, so there is no tipped wage below the general floor. Rules on tips and gratuities, including what an employer may and may not do with them, sit in their own part of the Employment Standards Act, and it’s worth reading that directly rather than working from practice inherited from a US operation.
If you need to write this down for your team, the tip-out policy generator produces a plain-language policy document, and the tip-out calculator handles the nightly split.
What else drives your labour cost here
The three-hour rule
If someone who normally works more than three hours reports for a shift and works less than three, they must be paid at least three hours at their regular rate. Sending people home early during a quiet service costs more than the hours they actually worked.
Indexation each October
Ontario indexes the minimum wage to the provincial Consumer Price Index, publishes the new rate by 1 April and brings it into effect on 1 October. You get six months’ notice, which is more than most jurisdictions give; use it.
Room and board offsets
Where you provide meals or accommodation, the Employment Standards Act sets specific amounts that count as wages: $2.55 per meal to a weekly maximum of $53.55, and $31.70 a week for a private room. Only counts where the employee actually received them.
Employer contributions
CPP, EI and Employer Health Tax where applicable all sit on top of the hourly rate, and they scale with it, so the October increase costs more than the 35 cent headline suggests.
For what your percentage should be measured against, see the cost benchmarks by type of food business.
Run your own numbers
Frequently asked questions
What is the minimum wage in Ontario in 2026?
$17.60 an hour until 30 September 2026, rising to $17.95 on 1 October 2026. The student rate is $16.60, rising to $16.90.
Is there a lower minimum wage for servers in Ontario?
No. Ontario eliminated its separate liquor server rate, so servers are paid the general minimum wage.
When does Ontario’s minimum wage change?
On 1 October each year. The new rate is indexed to the Ontario Consumer Price Index and published by 1 April, giving six months’ notice.
What is the three-hour rule in Ontario?
An employee who regularly works more than three hours a day, reports for work and then works less than three hours must generally be paid at least three hours at their regular rate.
Who gets the student minimum wage in Ontario?
Students under 18 who work 28 hours a week or less while school is in session, or who work during a school break or summer holidays.
Labour costs elsewhere
- Restaurant Labor Costs in the United StatesFederal floor, the tip credit, BLS median pay by role, and the national benchmarks.
- Hospitality Labour Costs in the UKNational Living Wage from April 2026, the age bands, and what they mean in practice.
- Restaurant Labor Costs in CaliforniaOne of the highest state floors, and no tip credit at all.
Rates on this page are reproduced from the government sources listed below and were last checked on 20 July 2026. They are published for orientation and are not legal advice — before you set pay, confirm the current figure against the primary source for your jurisdiction, including any local ordinance that may exceed it. The headline rate at time of writing was C$17.60 per hour.
Sources
- Government of Ontario — Minimum wage — Your guide to the Employment Standards ActUpdated 1 April 2026 · Government / statistical