Canadian Pay Transparency Is Going Mainstream in 2026: What It Means for Recruiting and Your Business

By George Waggott, founder and Roberto Fonseca-Velazquez, law student

George Waggott Law

As we enter 2026, pay transparency is no longer a fringe idea, and is now becoming a concept embedded in Canadian workplace norms and employment law. This trend is acting to reshape how organizations recruit talent and how candidates evaluate opportunities. Across the country, regulators, job seekers and employers are all adapting to a new era where compensation is no longer kept a secret until late in the hiring process and is instead a part of the conversation from the start.

Canada’s New Legal Landscape for Pay Transparency

British Columbia led the way with the Pay Transparency Act, enacted in 2023 and now fully rolling out over several years. This legislation requires all public job postings to include pay information and bans employers from asking candidates about their salary history. This purports to be an important step toward reducing systemic pay inequities, though that is not something which is easy to prove. During 2026, the scope of B.C. legislated reporting requirements is expanding: by Nov. 1, 2026, employers with 50 or more employees must prepare and publish annual pay transparency reports that reveal internal pay gaps by gender and other demographics.

Not to be left behind, Ontario’s new pay transparency and hiring disclosure laws took effect on January 1, 2026. As a result of changes enacted in Ontario’s Employment Standards Act, employers with 25 or more employees must include the expected compensation (either a specific salary or a salary range) in all publicly advertised job postings. The salary range itself cannot exceed $50,000 unless the role pays more than $200,000 annually. The result is expected to be that employers will move toward more precise and meaningful disclosures. Beyond pay, Ontario’s rules also require organizations to disclose if artificial intelligence is used in hiring and eliminate so-called “Canadian experience” requirements. There are also additional administrative requirements, with employers now needing to communicate application outcomes to candidates within 45 days of their final interview.

Recruiting in a Transparent Market

The shift toward salary visibility is having a measurable effect on candidate behaviour. A recent survey from Human Resources Director found that about three-quarters of Canadian job seekers are more likely to apply for roles that include a pay range. With this increased interest in pay disclosure comes a change to how the recruiting cycle is likely to function - more than half of the respondents indicated that they have abandoned applications when the listed pay did not match their expectations. It is unclear whether this ultimately means that recruiting processes will become more efficient, with fewer “rejected offers” being generated as a result of transparency earlier in the process. One related point of interest, which may change as pay transparency becomes more prevalent is worker knowledge of these rules: many workers in Ontario reportedly remain unaware that these new disclosure laws have taken effect, highlighting a communication gap that employers and Human Resources teams must address.

For recruiters and Human Resources leaders, transparency changes the calculus of attraction and retention. Employers that proactively communicate compensation can reduce early-stage candidate drop-off, attract a broader and more diverse applicant pool, and build credibility in a competitive market. But transparency also exposes internal pay gaps and can create pressure to revisit legacy compensation structures. These developments mean that there will be business and human resources issues across the organization: the questions to contend with will not just be for new hires, and will extend across existing teams.

Beyond Compliance: A Strategic Advantage

Pay transparency is often framed as a compliance challenge. Many forward-thinking organizations see things differently, and are leveraging greater openness and disclosure as a differentiator. Including clear salary guidance signals respect for candidates’ time and priorities. It also streamlines hiring by reducing back-and-forth negotiation and aligning expectations early in the recruitment process.

At the same time, employers must prepare for growing scrutiny from candidates and regulators alike. As enforcement ramps up and reporting becomes standard practice across a broader range of jurisdictions, organizations that have already sharpened their pay frameworks and recruitment processes will be better positioned to win talent and sustain trust, particularly among existing employees.

Summary

In 2026, pay transparency is no longer just a legal mandate in some parts of Canada . Instead, these legislated rules are created changes to how businesses operate and recruit, with disclosure  fast becoming something seem by many as a competitive advantage in recruitment. Employers that embrace clarity around compensation and adopt transparent hiring practices arguably not just complying with the law. Instead, this shift reflects a move towards building more inclusive, efficient and attractive workplaces for the future.

For more information about George Waggott Law, please see: www.georgewaggott.com, or contact: george@georgewaggott.com