Pay Transparency Is Coming to Ontario

Pay Transparency Is Coming to Ontario — And It’s a Chance to Strengthen How You Hire

Across Ontario, leaders are feeling the hiring landscape shift again.
Starting January 1, 2026, new pay transparency rules will change how job postings are shared and how employers communicate with candidates.

Who Needs to Prepare?

These changes apply to employers in Ontario with 25 or more employees.

If your organization is smaller, the rules might not apply — but many small businesses are choosing to adopt the spirit of transparency anyway because it strengthens their hiring brand.

Here’s a clear, consultative look at what’s coming — and why it’s worth paying attention.

1. Clearer Pay Information in Every Job Posting

Historically, many companies hesitated to share salary information upfront. Now, transparency won’t be optional for publicly advertised roles — and that’s not a bad thing.

Beginning January 1, 2026, job postings will need to include:

A defined salary or hourly wage range

This can be a single number or a range, but the range needs to be reasonable and intentional. For most companies, this will mean taking a fresh look at compensation bands and ensuring they align with today’s market.

All components of compensation

Base salary is only one piece. Bonuses, commissions, and other guaranteed or structured pay should be reflected within the overall compensation message.

Additional hiring context candidates care about

• Whether AI tools play a role in screening
• Whether the job is an active vacancy
• And importantly — no more requests for “Canadian experience” in job postings or applications

This shift encourages companies to be more intentional about how they communicate the role and the opportunity.

2. A More Respectful Candidate Experience

One of the most meaningful parts of the new rules is the expectation that employers follow up with every interviewed candidate.

Not everyone gets hired — but everyone deserves closure.

Organizations will now be expected to:

• Provide an outcome update within 45 days of a candidate’s final interview
• Deliver that message in writing or in person
• Keep a record of that communication

This is not about adding administration. It’s about building trust.
And quite frankly — candidates remember this. Responsiveness strengthens your reputation far beyond compliance.

3. A Gentle Reminder About Record-Keeping

To stay aligned with the new expectations, companies will need to hold onto:

• A copy of the job posting
• Any application forms used
• Notes or copies of follow-up messages to interviewed candidates

These records must be kept for three years.
If your hiring processes are currently decentralized, this is a natural moment to tidy up and align your systems.

How Leaders Can Prepare Now

Hiring leaders who stay ahead of these changes tend to approach them with a simple mindset:

Let’s use this as an opportunity to tighten, clarify, and elevate how we hire:

Here’s what that looks like:

1. Review your compensation structure

Make sure your ranges are realistic, competitive, and intentional.

2. Refresh your job posting templates

A little structure now means consistency later.

3. Clarify your interview process

Who follows up? How soon? How will updates be documented?
Small decisions made today prevent bottlenecks later.

Leaders and HR teams can also take a proactive internal approach by considering the following steps:

1. Audit and standardize compensation structures

Review salary bands, job levels, and pay practices to ensure they’re consistent and defensible. Identify any internal pay gaps and create a remediation plan. Being able to clearly explain how compensation is determined is essential before transparency becomes mandatory.

2. Train leaders and managers

Equip managers with talking points and FAQs so they feel confident handling compensation conversations. Training should include:

• How compensation ranges are built

• How to discuss performance vs. pay

• How to address difficult or emotional reactions

• How to redirect questions they can’t answer yet

3. Create clear internal communication materials

Develop messaging that explains why transparency matters and how it benefits employees, along with what will change and what will stay the same. Consider preparing:

• An internal communication timeline

• Guides for employees about reading salary ranges

• A glossary of compensation terms

4. Engage employees early

Host information sessions or feedback discussions before policy rollout. Inviting questions early reduces anxiety and builds trust. Employees should feel involved rather than surprised.

5. Align compensation decisions with performance and career pathways

Ensure employees see a direct connection between skill development, growth opportunities, and compensation. Define:

• Requirements for progression between levels

• Expectations for performance

• How raises, promotions, and adjustments are determined

Final Thought

Change always feels bigger when it’s on the horizon. But once the dust settles, these updates are really about supporting better communication, fairer hiring practices, and a more respectful candidate journey.

If you’re unsure how to adapt your postings, compensation ranges, or communication workflows, TerraHR Consulting is here to help — thoughtfully, practically, and with the same hands-on support we bring to every client partnership. Please contact us at info@terrahrconsulting.com.