New Pay Transparency Rules Poised to Shake up Ontario’s Labour Market, Experts Say
Employers with over 25 employees must share salary ranges capped at a $50,000 gap and disclose AI use in hiring to improve pay fairness and transparency.
- On Jan. 1, 2026, the Government of Ontario will require employers with more than 25 employees to post compensation ranges and disclose use of AI in hiring.
- Supporters describe the rules as a step to boost accountability and give workers pay information before they apply, helping internal employees understand compensation.
- Under the new rules, postings must cap the annual salary range at $50,000 unless the job pays more than $200,000 or the top end exceeds $200,000, and employers that have not developed compensation strategies are scrambling to adapt.
- Employers face practical effects: surveys show 73 per cent of job applicants would apply to jobs with pay ranges, and Indeed found 83 per cent view the changes positively.
- With pay-transparency spreading, similar rules in B.C., Prince Edward Island and parts of the U.S. situate Ontario within a wider trend as workers and employers prepare next year, with an online poll that polled 900 individuals capturing public sentiment.
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New pay transparency rules poised to shake up Ontario's labour market, experts say
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