The Ontario government plans to cut small business taxes by $540 million over the next seven years to help offset the increase in the minimum wage.

The province intends to increase the minimum wage by 75 cents a year over three years beginning March 31, 2008. It will rise to $10.25 an hour, up from the current $8.00 an hour.

In a statement released today, the Human Resources Professionals Association of Ontario(HRPAO)said employers will have to consider how the increase in minimum wage will impact the compensation of their other employees.

It was also pleased that the changes will be phased in, which will give employers time to prepare and do the appropriate business planning

To read Ontario employers to pay minimum wage workers more from January 2007, click here.

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