Ontario Payroll rates and HR information updatesOntario Payroll rates and HR information updates

Ontario Provincial Payroll Information

This page provides provincial payroll information for the province of Ontario. Click one of the links below to move directly to the corresponding section. To view Federal information, please click here.

Choose a Topic:

Minimum Wage  Hours of work  Worker's Compensation  Leaves  Statutory Holidays  Minimum Age  Pay Statements  Terminations  Vacationable Earnings  Provincial Health 

 

  • TD1 - Basic Personal Amount - Every person employed in Ontario and every pensioner residing in Ontario can claim the personal exemption amount of $10,171 for 2017.
  • Federal Basic Exemption - The Federal Basic Exemption amount is $11,635 for 2017.

Note: This information is meant to serve as a guide only. Readers are encouraged to consult the full legislation of the Ontario Employment Standards Act. Here are some online resources:


Minimum Wage in Ontario

The province of Ontario has various wage rate standards as follows:

Parties Applicable (requirements) Wage Rate (as of October 1, 2016)
General $11.40
Students under 18 and working not more than 28 hours per week or during a school holiday $10.70
Serving liquor on licensed premises $9.90
Homeworkers $12.55
Hunting and fishing guides working less than five consecutive hours in a day $56.95
Hunting and fishing guides working five or more hours in a day whether or not the hours are consecutive $113.95
 
The following maximums apply when rooms, accomodations or meals are calculated in the minimum wage:
Private room $31.70/weekly
Non-private room $15.85/weekly
Non-private (domestic only) $0.00
Meals $2.55/each, $53.55/weekly
Private room and meals $85.25/weekly
Non-private room and meals $69.40/weekly
Non-private room (domestic only) $53.55
Housing for farm workers only (commodities such as electricity etc. are provided by the employer) $99.35/weekly
Housing Accommodation (unserviced housing) $73.30/weekly

Hours of Work in Ontario

The type of employee excluded from this legislature are management, homemakers, teachers, etc.

Period Rate
Maximum 8.00 hours/day or 48.00 hours/week
* ** Exclude statutory hours from overtime calculation and reduce the work week by the statutory hours
Overtime Any hours over 44.00 hours/week
Overtime Rate 1 and 1/2 times the employee's regular rate of pay
Break Period 1/2 hour per consecutive 5 hours worked
Rest Period 11.00 consecutive hours in 24 hr. period and 24.00 consecutive hours each week or 48 hours every two weeks.

Worker's Compensation in Ontario

The Maximum Assessable Earnings amount for 2017 is $88,500. The deadline for submission is the last day of March.

Included
Bonuses Pay in lieu of notice
Commissions Regular salary or wages/overtime
Call in pay Shift premium
Call back pay Sick pay
Car allowances (if taxable) Sick pay on termination
Clothing allowances (if taxable) Standby pay
Gifts (cash) Short-term disability paid by the employer
Gratuities Temporary lay-off with pay
Long-term disability paid by the employer Travel allowances (if taxable)
Maternity with pay Vacation pay/statutory holiday pay
Moving allowances (if taxable)
 
Taxable Benefits such as:
Board & lodging Loans
Company car RRSP/Stock options (if taxable)
Life insurance  
 
Excluded
Directors' fees Severance pay
Pre-retirement with pay (exclude if sick pay) WCB
Retiring allowance WCB-top up

Leaves of Absence in Ontario

Pregnancy Leave
Time with Employer at least 13 weeks before the estimated due date
Required Notice two weeks
Length of Leave 17 weeks with no pay taken no sooner than 17 weeks before the expected birth with a minimum of six weeks after birth.
Benefits Maintained Yes
   
Parental Leave
Time with Employer thirteen consecutive weeks
Required Notice two weeks written notice
Length of Leave 35 weeks beginning immediately after the maternity leave.
Extension of Leave The other parent may take 37 weeks after the maternity leave and the 35 weeks of parental leave have been taken.
Benefits Maintained Yes
   
Voting Leave
Time with Employer N/A
Required Notice N/A
Length of Leave three consecutive hours
Paid Yes
   
Compassionate Care Leave
Time with Employer Employee must notify the employer in writing - and if the leave is sudden, as soon as possible after starting the leave.
Required Notice A physician’s certificate that the patient has a specified, serious medical condition with a significant risk of death occurring within 26 weeks.
Length of Leave 8 weeks
Paid Six weeks of Employment Insurance benefits may be paid to EI eligible employees.

Statutory Holidays in Ontario

Holiday 2017 2016 2015 2014
New Year's Day Sun., Jan. 01 Fri., Jan. 01 Thu., Jan. 01 Wed., Jan. 01
Family Day Mon, Feb. 20 Mon, Feb. 08 Mon, Feb. 09 Mon, Feb. 10
Good Friday Fri., Apr. 14 Fri., Mar. 25 Fri., Apr. 03 Fri., Apr. 18
Victoria Day Mon., May. 22 Mon., May 23 Mon., May 18 Mon., May. 19
Canada Day Sat., July 01 Fri., July 01 Wed., July 01 Tue., July 01
Labour Day Mon., Sep. 04 Mon., Sep. 05 Mon., Sep. 07 Mon., Sep. 01
Thanksgiving Day Mon., Oct. 09 Mon., Oct. 10 Mon., Oct. 12 Mon., Oct. 13
Christmas Day Mon., Dec. 25 Sun., Dec. 25 Fri., Dec. 25 Thu., Dec. 25
Boxing Day Tue., Dec. 26 Mon., Dec. 26 Sat., Dec. 26 Fri., Dec. 26

According to the Canadian Labour Standard Code, whenever New Year's Day, Canada Day, Christmas Day or Boxing Day fall on a Saturday or Sunday, the employer must grant his or her employee a holiday with pay on the next working day immediately preceding or following the holiday, providing that the holiday is a provincial requirement. If a statutory holiday is worked on a regularly scheduled day then the employee must receive either their regular pay plus time and a half or for a business like a gas station which is continuously open the employee must receive their regular pay plus be granted a day off with pay on some later date.

The following holidays fall under the Retail Business Closing Act: New Year's Day, Good Friday, Victoria Day, Canada Day, Labour Day, Thanksgiving Day, Christmas Day, the 26th day of December, Sunday (Easter Sunday and other holidays only) and any other public holiday as proclaimed by the Lieutenant Governor.

Ontario has no legislation regarding Remembrance Day either as a statutory holiday or as a holiday under the Retail Business Holiday Act.

Minimum Age in Ontario

A child of age 14 is permitted to work at any place other than a factory. A child of 15 is allowed to be employed in construction or factory other than logging operations, if excused from school under the education act. A child of 16 is permitted to work at a surface mine (excluding the working face) or mining plant and in construction. A person of age 18 can work at an underground mine or surface mine, doing work off shore for an oil or gas rig.

Pay Statements in Ontario

For Ontario there is no legislation on the frequency at which pay periods should take place. The employee must receive their pay on an established regular basis. By legislation, pay statements must contain the following (though employers may include additional items):

Pay Statement Inclusions
Dates of pay periods Other earning/payments
Itemized deductions Allowances (living)
Gross earnings Vacation Pay
Net pay Statutory holiday / hours
Overtime hours Bonuses, commissions, allowances
Rate of pay and hours worked Overtime wages

Termination Notice in Ontario

Individual Termination
Length of Employment Notice Required
Under 3 months None
Between 3 months and 1 year 1 week
Between 1 year and 3 years 2 weeks
3 years or more For every year after 3 years an additional week is required up to 8 weeks in total

Group Termination
Number of Employees Notice Required
50 to 199 8 weeks
200 to 499 12 weeks
500 or more 16 weeks

Vacationable Earnings in Ontario

The Vacation Entitlement for Ontario employees who have worked at the same job for one year (12 months) is 2 weeks or 4% of their gross pay.

Inclusions and Exclusions
Included
Work related bonuses (cash) Regular salary/wages/retroactive
Call in pay Shift premium
Call back pay Standby pay
Commissions earned at employer's premises Statutory - Company Holidays (floaters)
Commissions earned by a route salesman Statutory - General Holidays
Overtime pay Sick pay - Sick days (if part of regular wages)
Pay in lieu of notice/Termination pay  
 
Taxable Benefits:
Board & lodging
 
Excluded
Allowances (Car, clothing, moving, travel) Previously paid vacation pay
Discretionary bonuses (cash) Profit Sharing (if it is a DPSP)
Commissions earned away from employer's premises Severance/Plant severance
Directors' fees Sick pay - Sick days (if a benefit)
Gifts (cash or in kind) Tips and Gratuities
 
Taxable Benefits:
Company car Loans
Life Insurance Provincial Medical

Provincial Health in Ontario

Employer Health Tax (EHT) is a payroll tax on remuneration paid to employees and former employees. Effective January 1, 2014, the EHT exemption increased to $450,000 from $400,000 of Ontario payroll.

The amount of EHT you, as an employer, pay is calculated by multiplying your Ontario payroll for the year - after deducting any tax exemption - by the applicable tax rate. The tax rate is based on the Ontario payroll of the employer before deducting any tax exemption.

Ontario EHT Contributions
Annual Gross Pay
EHT Rate
$0-$200,000
.98%
$200,001-$230,000
1.101%
$230,001-$260,000
1.223%
$260,001-$290,000
1.344%
$290,001-$320,000
1.465%
$320,001-$350,000
1.586%
$350,001-$380,000
1.708%
$380,001-$450,000
1.829%
Over $450,000
1.95%

 


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