Ontario Laws Change at Start of 2018
Several key laws took effect in Ontario at the start of 2018, impacting wages, housing, and employee rights. Changes include minimum wage hikes and new mortgage stress test rules.
Several Ontario laws came into effect at the beginning of 2018, introducing significant changes for the province's workers and housing market. The legislative updates cover increases to the minimum wage, new mortgage qualification rules, expanded vacation entitlements, and changes to personal emergency leave.
The general minimum wage increased to $14 per hour, with a rate of $12.20 for liquor servers. New mortgage rules mandate that all home purchasers must qualify under a stress test where the interest rate is assessed as 2 percentage points higher than the contract rate. This measure reduces the amount borrowers can access, thereby impacting their purchasing power.
Additionally, OHIP+ was introduced, a pharmacare program providing free access to over 4,000 medications for Ontario children, teens, and young adults under 25. Employees with five years of service at the same employer are now entitled to three weeks of paid vacation, an increase from two. All employees are now eligible for 10 days of personal emergency leave per year, with the first two days paid if employed for at least one week.
The corporate income tax rate for small businesses was reduced from 4.5% to 3.5%. Cost of borrowing for payday loans was capped at $15 per $100 borrowed, with further regulations on loan amounts and advertising taking effect mid-year.