Workers and employers across Ontario are preparing for major changes to the hiring process as new pay transparency legislation is set to take effect on January 1, 2026.
Under the new rules, Ontario employers with more than 25 employees will be required to include salary or wage ranges in publicly advertised job postings.
Employers will also be required to disclose when artificial intelligence is being used to screen, assess, or select job applicants — a move aimed at increasing transparency and accountability in recruitment practices.
Ontario joins a growing number of jurisdictions across North America introducing pay transparency laws, including British Columbia, Prince Edward Island, and several U.S. states.
Supporters of the changes say the rules will help streamline hiring by giving job seekers clearer expectations before applying, while also pushing employers to examine and formalize their compensation structures.
To prevent abuse of the system, Ontario’s legislation limits how wide salary ranges can be. Job postings must not include a range wider than $50,000 annually, unless the role pays more than $200,000 or the upper end exceeds that amount.
This measure is intended to stop employers from posting overly broad ranges that offer little meaningful information.
Data from a recent Indeed survey suggests strong public support for the changes.
Eighty-three per cent of respondents across Ontario, B.C., and Quebec said they view pay transparency positively, while nearly three-quarters said they would be more likely to apply for a job that includes a posted salary range.
With AI disclosure also becoming mandatory, experts say employers will need to carefully balance technology with the human element of hiring.
As companies rely more on automated systems, maintaining a positive candidate experience and strong employer brand will become increasingly important in attracting top talent.