Small Business Owners Say Wage Hikes Save Them Money
Ontario’s scheduled minimum wage increase goes into effect on 1st October – small businesses and workers both benefit long-term.
FOR IMMEDIATE RELEASE
ONTARIO | September 16, 2025 – At a time of high business costs and heightened economic uncertainty – some small business owners are already ahead of one cost increase: the upcoming minimum wage hike on October 1st.
In Ontario, the minimum wage is scheduled to rise by 40 cents per hour – from $17.20 to $17.60 per hour.
Despite popular belief that higher minimum wages will cause small business closures or layoffs, business owners in the Better Way Alliance (BWA) network find that planned minimum wage increases help them invest in stability for both their employees and enterprises.
“Raising wages isn’t a cost – it’s a savings strategy. I’d rather keep good people than constantly spend thousands training new staff. I plan ahead for scheduled increases and make them part of my overall pay strategy, which along with benefits and culture, has played a major role in my business’s growth.” – Laura Sultan, Founder & CEO, Designs by Nature Gems, Toronto
The divide between minimum wage and living wage is high – a difference of $8.80 per hour in Ontario’s most expensive city – indicating Ontario minimum-wage workers are still underpaid, as a recent CBC news article explained. The upcoming increase in minimum wage narrows that divide by only a few cents, leaving workers still unable to cover basic needs.
When a full-time job doesn’t pay enough to live, workers will often leave for better opportunities elsewhere.
Members of the Better Way Alliance – a network of business owners across the country in several sectors – proactively invest in higher staff pay, paid sick days, and stable scheduling. This helps their enterprises reduce churn rates and foster more loyal employees who deliver better customer service and increased productivity.
Staff turnover costs businesses thousands per employee, but fair wages create the stability that benefits everyone. When workers can afford to live in the communities where they work, they become invested team members who deliver better customer service and drive business growth.
“Providing minimum wage employees with a boost not only helps them keep up with rising costs, but it invests more money in business growth – ultimately creating stronger and more stable Canadian businesses during global uncertainty,” says Liliana Locke, Knowledge Director at the Better Way Alliance.
While businesses prepare for the October 1st wage increase, CFIB’s August Business Barometer data reveals that both insurance and rent cost pressures are increasing concerns for Canadian businesses. In response the BWA will release a comprehensive 5-year comparative analysis of business costs in the Toronto market. To receive an advance copy before the official September 25th release date, email aaron@betterwayalliance.ca.
Small business owners are available to comment on the upcoming minimum wage increase.
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About the Better Way Alliance: The Better Way Alliance is a network of employers offering Good Jobs to local workers across Canada, advocating for policies that support inclusive community growth and economic resilience for Canada’s locally owned businesses.
Media Contact: Aaron Binder | Communications Director | Better Way Alliance
aaron@betterwayalliance.ca | 416-677-5088
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