3 New Ontario Laws and Rules Set to Take Effect October 2025

Ontario is preparing for three major rule changes starting this October. These updates will affect workers, employers, and families across the province. Here’s a simple guide to what’s changing, who it affects, and why it matters.

Minimum Wage Rises to $17.60

Starting October 1, 2025, Ontario’s general minimum wage will increase from $17.20 to $17.60 an hour. That’s an extra 40 cents for workers in retail, hospitality, manufacturing, and more. Full-time workers could earn around $1,664 more per year before taxes.

This raise follows the inflation rate, based on the Consumer Price Index. The goal is to help workers keep up with the cost of living. But some experts say it’s not enough.

“This hike is a band-aid on a bullet wound,” said economist Dr. Elena Vasquez. She believes workers in cities like Toronto and Ottawa still struggle with rising food and rent prices. Many call for a “living wage” closer to $20 to $25 an hour.

The wage increase also includes:

• Student Wage: Goes from $16.20 to $16.60/hour.
  
• Special Workers: Hunting/fishing guides will now earn $88.05/day for under 5 hours, or $176.15/day for 5+ hours.
  

Employers must follow the new rates, or they face legal trouble. If a shift covers hours before and after October 1, wages must be split accordingly.

EI Changes Coming October 11

While wages are rising, some federal Employment Insurance (EI) supports are ending on October 11, 2025. These were put in place after U.S. tariffs hit Canadian exports like steel and autos.

What’s ending?

• No More Free Week: The one-week waiting period for EI will return. From March to October, laid-off workers didn’t have to wait. That bonus is gone.
  
• Severance Exemptions End: Temporary rules allowed workers to keep full severance without it affecting EI. This benefit ends too.
  
• Regional Rate Boost Ends: EI rules were loosened by raising unemployment rates in every region. This made it easier to qualify for benefits. That’s also going away.
  

Union leaders say this could hurt workers already struggling in industries hit by layoffs.

“It’s like yanking the ladder after the flood,” said Marco Rossi, a union rep for manufacturing workers.

Some supports remain for long-term workers. A $1.6 billion fund will provide extra EI weeks for those employed for over 10 years. But for most people, things return to stricter rules. If you're worried, file your EI claim before October 11.

$9 Billion Tax Deadline for Businesses

Small and medium-sized businesses that took part in Ontario’s tax deferral program must repay what they owe by October 1, 2025. This program began in April to help businesses hit by U.S. tariffs. It allowed companies to delay payments on 10 types of provincial taxes, including fuel and employer health taxes.

Now, the interest-free break ends. If businesses miss the deadline, they face penalties.

Premier Doug Ford said at the time, “We’ll do whatever it takes to protect Ontario workers.” But now, many companies must choose between repaying taxes or risking fines.

To stay afloat, businesses should:

• Check their cash flow now
  
• Use accounting software to plan repayment
  
• Look into grants and rebate programs still available
  

The goal was to protect jobs. Now, it’s a test of whether those same businesses can bounce back.

Looking Ahead: More Changes on the Horizon

October’s changes are just the start. New workplace laws are rolling out across 2025 and into 2026. These include:

• New rights for gig workers
  
• More transparency in job postings
  
• Stronger safety rules under the “Working for Workers” laws
  

Ontario’s economy is shifting fast. Workers and employers need to stay alert and informed to make the most of what’s ahead.