(Reuters) - Ontario's ruling Progressive Conservative government said on Tuesday it plans to raise the hourly minimum wage by 50 Canadian cents beginning in October, in what would be the second hike in an election year for the most populous Canadian province.
The proposed pay raise, if passed by the provincial legislature, would take the general minimum wage to C$15.50 ($12.41) per hour starting on Oct. 1, nearly four months after the province's June 2 election, according to a statement from the Ontario government. That would translate to an annual pay increase of C$1,768 for minimum-wage workers working 40 hours a week.
"For many Ontarians, wages haven't kept up with the increasing cost of living, making it harder than ever to make ends meet," Ontario Premier Doug Ford said in the statement.
On Jan. 1, the hourly minimum wage in the province rose to $C15 from C$14.35.
Inflation in Canada is at a 30-year high, and a Bank of Canada survey showed on Monday that businesses now expect inflation to stay above the central bank's target range of 1% to 3% over the next two years.
Ford's government, which is favored to be re-elected, has announced a host of measures it says are aimed at reducing living costs for Ontario residents.
On Monday, the government introduced legislation to reduce taxes on gas and fuel that, if approved by the legislature, would take effect after the June election.
Ontario has removed tolls on some highways and eliminated vehicle license plate renewal fees in recent weeks. Ford has also announced an increase in the real estate speculation tax for foreign buyers to 20% from 15%.
($1 = 1.2490 Canadian dollars)