Ontario’s new pay transparency rules will shake up hiring

Workers and employers in Ontario are gearing up for significant changes in the hiring process as new pay transparency requirements are set to come into effect next year. The province is the latest to enact such rules, which will compel employers to disclose salary information on job postings. Experts say it will help streamline the hiring process, as it gives job seekers more details about the role before they apply, but it also means some firms will have to update their compensation policy. 

Pay transparency laws are gaining traction across North America, with similar rules already in place in other provinces like B.C. and Prince Edward Island, as well as parts of the U.S.   

Pay transparency can help level the hiring field

Some of the key changes coming to Ontario on Jan. 1, 2026, include requirements that employers with more than 25 employees post compensation ranges in publicly advertised job postings and disclose the use of AI in screening, assessing, or selecting applicants.

“It just overall puts employees and workers in a better position to have that information coming in and to know what a position pays before they decide to apply for it,” said Nora Jenkins Townson, the founder of HR consultancy Bright + Early. “From an employee perspective, I think having a solid understanding of how compensation works at the organization, how those decisions are made, what the ranges are … it’s just a lot fairer, it takes us away from that ‘squeaky wheel gets the grease’ scenario.”

She said pay transparency can help level the playing field by aligning compensation to a specific job and level of output, creating a more objective system compared with subjective aspects like an employee’s relationship to their manager. She added that companies that have not done the foundational work to develop compensation strategies are “scrambling to catch up.”

“You can’t really just add a number to a job posting. You need accurate, researched market data. You need a philosophy as to where you pay within that data and why,” Jenkins Townson said. However, she said in other markets where pay transparency rules are already in place, some employers try to sidestep the rules by making pay ranges on job postings very wide.

New rules limit pay-range gaps

Ontario’s upcoming rules stipulate that the annual salary range on a posting must not exceed a gap of $50,000, unless the job pays more than $200,000, or where the top end of the range is more than $200,000.

Deb Bottineau, managing director at Robert Half Canada, said the new pay transparency rules are a “pretty significant step forward.”

“It’s going to equalize the playing field,” she said. “That impact will be not only for those applying to positions, but it also creates a greater landscape of accountability and awareness for internal employees as it relates to pay rate ranges and compensation.” It may also help narrow gender or racial pay gaps that exist.

The changes may also push business leaders to take stock of what other firms pay for similar positions or risk having trouble attracting and retaining talent, Bottineau said.

Most job seekers welcome pay transparency

Data released in November from Indeed found 83% of respondents across B.C., Ontario, and Quebec view the changes positively. The survey was conducted online between Sept. 29 and Oct. 3 and polled 900 individuals. Seventy-three per cent said they would be more likely to apply for a job that included a pay range.

With employers having to disclose in job postings where AI is being used, Bottineau said the human element in the hiring process will also become more important for companies to maintain their “brand impression” and ability to attract talent.

“When candidates are applying to jobs, and it’s taking multiple steps before they’re engaging with a human in that process, that gap can be felt both for the employee and the employer,” she said. “I think we’re going to continue to hear a lot of conversation as we head into the new year about the role of AI in recruitment practices. How do we create the right balance so the employer brand (and) the candidate experience are all kept top of mind?”

Read more about jobs:

• How to use AI to find a job—without annoying the employers
• How to negotiate a job offer to get better benefits
• What to do if your employer is in financial trouble
• New grads aren’t getting the mentorship they need at work—here’s how to find it

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