Businesses across Ontario will soon be paying their minimum wage workers a bit more.
The provincial government announced on Tuesday the hourly wage will rise by 40 cents to $17.60 starting on October 1, 2025.
It's been set at $17.20 since Oct. 1, 2024, having increased by over three dollars per hour since 2020.
Rory Ring, president and CEO of the Chatham-Kent Chamber of Commerce, is worried about the timing as Canada and the U.S. are currently in a trade dispute. He said the only positive from a business perspective is the fact the province is waiting six months to do this.
"At least it's a known that is coming up in the fall and businesses are able to plan for that increase," Ring added.
Ring explained this is another hurdle businesses will have to overcome. Depending on the tariff situation in six months time, he wouldn't be surprised if some businesses are forced to make tough decisions.
"Businesses may start to shed employees just because of the constraints they're maybe faced with," he said.
One thing expected to help offset this increase is the cut of the consumer carbon tax which officially happened on Tuesday. Ring believes most people will start to see cheaper prices, specifically for gas, sooner rather than later.
Meanwhile, Ring understands the reasoning behind the increase. He believes it will have a positive impact on those making minimum wage.
"It will give more people a little bit more disposable income in some really tough times," he added.
Ring said he hasn't heard from any businesses against the increase. Most talks he's had have focused around all the challenges happening at the same time.