Labour groups and the provincial New Democrats are putting pressure on the Ontario government to boost the minimum wage, but the finance minister says the economy could not support it.

A private member's bill tabled by NDP MPP Cheri DiNovo calls for Ontario's minimum wage to be set at $10 an hour and then linked to the rate of inflation.

Supporters say it is about trying to end poverty, particularly for children.

"If we look at the latest Stats Canada data here in Ontario, we find that one in every six children are living below the poverty line," Jackie Mond of Campaign 2000 said Wednesday.

"Thirty-eight per cent of those poor children are in families where the parents are working full-time, full-year, but are not able to earn enough to lift their family above the poverty line. So clearly, low wages and poor working conditions are part of the reason behind our child poverty problem here in Ontario."

Ontario's minimum wage is set to rise by 25 cents on Feb. 1 to $8 an hour. It will be the fourth increase since the Liberals took office in 2003. At that time the rate was $6.85 an hour. It was raised by 30 cents on Feb. 1, 2004, then again by the same amount in 2005 and 2006.

But a further $2 increase could not be supported by the economy, according to Finance Minister Greg Sorbara. He added that the $10 minimum wage could put up to 66,000 jobs at risk.

Sorbara believes that most employers would simply keep their total payroll the same and cut hours for minimum wage workers.

He admitted that the government has been facing pressure during pre-budget consultations to address poverty and Sorbara hinted that there may be action in the spring budget.

Meanwhile, DiNovo's bill has passed second reading in the legislature. It will be up to the Liberal government to decide if the bill goes on to third and final reading.

February's minimum wage increase will also include the following changes:

  • Students under 18, who are employed for no more than 28 hours a week during the school year or holidays, will earn $7.50 per hour;
  • Liquor servers will get a 20 cent per hour raise, bringing their minimum wage up to $6.95; and
  • Hunting and fishing guides currently paid a minimum of $38.75 for less than five consecutive hours of work and $77.50 for five or more hours, will receive a boost to $40 and $80 respectively.

With files from The Canadian Press