Minimum wage in Canada helps ensure fair baseline compensation for servers and other tipped workers who rely heavily on gratuities to supplement their income.
In Ontario, they are reviewed annually and increased periodically to keep pace with rising living costs. This article examines server minimum wage in Ontario for various server roles in 2026, perspectives on impacts, how restaurants adapt, effects on tipping culture, and what it means for employment in the sector going forward.
What is the Server Minimum Wage in Ontario?
The server minimum wage in Ontario is $17.60 per hour, effective October 1, 2025. This rate applies to all food and beverage servers, including waiters and waitresses working in restaurants, bars, and other hospitality venues.
Previously, there used to be a lower minimum wage for employees who served alcohol, which was less than the general minimum wage in Ontario. However, on January 1, 2022, Ontario removed the separate minimum wage for servers. As a result, all servers are now entitled to the general minimum wage, ensuring they receive the same base hourly pay as workers in most other industries.
Is Server Minimum Wage Different Among Roles?
No, the server minimum wage in Ontario is the same as that of all other minimum wage workers. Moreover, it is separate from tips and gratuities.
Food Servers Minimum Wage
Food servers in Ontario, including those working as waiters, waitresses, hosts, hostesses, bartenders, barbacks, bussers, food runners, and gevneral dining room attendants, are entitled to $17.60 per hour.
Tipped food service employees in these roles are expected to earn additional supplemental income through gratuities provided by customers. However, tips cannot be used to offset the payment of minimum wage to these servers.
Liquor Servers Minimum Wage
In addition, workers serving alcohol in roles such as bartenders, bar staff, cocktail servers, sommeliers, and servers working in pubs, bars, nightclubs, stadiums, and other primarily liquor-focused licensed establishments still qualify for the full $17.60 per hour.
Restaurant Servers Minimum wage
All Ontario restaurant wait staff and servers, including those working in full-service restaurants, quick-service restaurants, cafeterias, diners, and other varied dining establishments, qualify for the $17.60 per hour. This applies to servers in roles such as waiters, waitresses, hosts, bussers, food runners, and bartenders employed directly by the restaurant.
As of October 1, 2025, students under 18 working in the server roles mentioned above who work 28 hours per week or less when school is in session, or who work during a school break or summer holidays, receive the Ontario student minimum wage of $16.60/hour. This rate is $1 lower compared to the adult server minimum wage of $17.60/hour.
Source: Minimum wage rates – ontario.ca
How Tips Work for Servers in Ontario
In Ontario, tipping is a big part of a server’s earnings. That’s why there are rules to make sure tips are handled fairly and paid properly.
Types of Tips
There are 2 types of tips, which are direct and controlled tips that can be added to server wages in Ontario. The Canada Revenue Agency (CRA) considers all tips and gratuities to be taxable income.
Direct tips
Direct tips flow straight from customers to servers without employer involvement.
For direct tips, which are not included on your T4 slip, the CRA requires you to track this income and report it on Line 10400 (Other employment income) on your tax return.
According to the CRA, direct tips are not subject to CPP and EI deductions by your employer. However, if you want to contribute to the Canada Pension Plan (CPP) on this income, you can do so voluntarily by filling out Form CPT20.
So, it is always best to consult the official CRA and Service Canada websites to ensure you are following the correct procedure for your specific situation.
Controlled tips
Controlled tips pass through employer control before reaching employees. Controlled tips are considered part of your employment income.
As such, they are recorded in Box 14 of the T4 slips and must be reported as employment income on Line 10100. Because these tips are considered part of your remuneration, they are subject to CPP contributions and EI premiums. Your employer will automatically deduct CPP and EI, just like with your regular wages.
Under Ontario’s Employment Standards framework, your tips are considered separate from your hourly pay. Your employer must still pay you at least minimum wage for all your hours, and your tips are extra money you earn on top of that.
The Outlook on Tipping Culture
Tips can vary due to many factors, such as restaurant location, pricing, and seasonal changes. Yet, they will still be considered extra income and have specific rules for taxes and employment insurance.
In Ontario, employers can run a tip pool and redistribute tips among some or all employees (including tip-outs). However, employers generally cannot withhold or deduct tips except where required by law/court order or when administering a tip pool.
For tip pooling arrangements to work effectively, they should outline:
- Clear percentages for how tips are shared
- Who is responsible for redistributing the tips
- How often tips will be shared and how long the agreement will last
Also, employers must follow strict rules regarding tips:
- Using tip money to cover costs like broken dishes, cash register shortages, or other workplace losses
- Making unauthorized deductions from employee tips
- Note that in certain cases, managers and supervisors may participate in tip pools when specific criteria are met
These rules apply regardless of payment method or business type.
Source: Tips and Other Gratuities Guideline – Employment Standards
How Ontario Restaurants Are Adapting to Rising Labour Costs
Minimum wage increases present genuine challenges for Ontario’s low-margin restaurant industry. However, well-run establishments can adapt via pricing adjustments, cost control, changing menus, and optimizing operations. Although adaptations are required, Ontario’s restaurant industry will continue providing quality jobs and dining experiences.
Cost-Saving Changes in Restaurant Operations
According to Job Bank, about 30.1% of food service workers in Ontario receive at least one non-wage benefit, as of November 19, 2025. With tight profit margins in the restaurant industry, businesses are using various adaptation strategies to manage rising wage costs:
- It is increasing menu prices strategically to raise revenues. Avoid across-the-board hikes that could dampen demand.
- Reducing portion sizes on high-cost menu items. This provides stealth price increases.
- Changing menus to drop lower-margin items and add cheaper proteins or plant-based options.
- Transitioning to no-tipping models with higher wages to address pay disparities between front and back-of-house.
Legislative improvements directly benefit hospitality workers through enhanced protections and opportunities. The Working for Workers Six Act addresses current workplace issues and promotes economic growth.
According to an Ontario government news release about the minimum wage increase effective October 1, 2025, approximately 36% of workers earning near minimum wage work in retail, and 24% are in accommodation and food services. These statistics underscore the significant impact of wage changes on server communities.
Source: Ontario Raising Minimum Wage to Support Workers – news.ontario.ca
Potential Impacts on Restaurant Employment in Ontario
Some studies show minimal job losses from minimum wage increases. Possible employment impacts include:
- Unprofitable restaurants may close, resulting in job losses, but this could lead to increased demand at other restaurants.
- Reduced hours can lead to fewer staff needed and fewer hours for workers.
- Higher business costs might push restaurants to automate certain tasks, which can reduce some job roles.
At the same time, service and hospitality rely heavily on human workers. While technology can help, it can’t replace servers and customer service staff.
FAQs related to Server minimum wage in Ontario
Is there a different minimum wage for student servers in Ontario?
Yes, there is a lower student minimum wage of $16.60 per hour for servers under 18 years old, provided they work 28 hours per week or less.
How often do server minimum wages increase in Ontario?
Ontario reviews minimum wage annually. Since 2022, increases have generally been tied to Ontario CPI and typically take effect on October 1 (when announced).
Does Ontario have a lower minimum wage for liquor servers?
No, Ontario does not have a separate, lower minimum wage for liquor servers. They now equal the general minimum wage at $17.60.
Are servers in Ontario entitled to tips in addition to minimum wage?
Yes, tips are meant to provide supplementary income for servers on top of their guaranteed minimum wage pay in Ontario. Tips cannot be used to offset payment of minimum wage.
How are restaurants responding to higher minimum wages?
Restaurants are using strategies like raising prices, changing menus, restricting hours, considering no-tipping policies, and increasing automation to adapt to rising labour costs from higher minimum wages.
Will higher minimum wages reduce tipping at restaurants?
Opinions vary on the impact on tipping culture. While some restaurants are eliminating tipping, most industry experts believe reliance on tips will decline gradually as minimum wages rise.
Could higher minimum wages lead to job losses at restaurants?
It's debated, but some job impacts are likely given the low-profit margins in the restaurant industry. There may be closures of unprofitable establishments.
