While pay transparency requirements differ across Canada, there are several best practices for employers to ensure equity in the workplace, says Caitlin Hurren, legal counsel at ADP Canada.
Provincial pay transparency legislation is gradually being enacted across the country. On Jan. 1, 2026, Ontario-based employers will be required to include total compensation — including base salary, bonuses and commissions — or a range of expected compensation up to $50,000.
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British Columbia enacted pay transparency legislation in 2023 and, by 2026, all employers with 50 or more employees will be required to post pay transparency reports. And both Newfoundland and Labrador and Prince Edward Island enacted pay transparency legislation in 2023 and 2022, respectively.
Regardless of legislated requirements, employers in any province can promote equity in the workplace by including expected salary ranges in job postings and publishing detailed pay transparency reports, says Hurren.
“Encouraging open dialogue about pay equity and protecting employees from reprisals for discussing their compensation are essential. Employers should base compensation on the value of the work performed, ensuring no pay differences between employees doing comparable work. Documenting these practices and making them accessible fosters transparency and trust.”
Read: How B.C.’s pay transparency legislation could impact employers
Pay transparency measures can also support employers’ attraction and retention strategies by promoting fairness in the hiring process and helping candidates make informed decisions. “Keeping applicants informed throughout the hiring process enhances their experience and strengthens the employer’s brand reputation, attracting stronger talent and aiding in employee retention.”
In addition to supporting employees, pay transparency can also bolster an employer’s reputation among workers and the general public. Conversely, Hurren says companies that are perceived as lacking corporate responsibility and fairness might face challenges with their public image and brand reputation.
“Such reputational concerns may make it more difficult to attract investors and business partners, potentially impacting the company’s financial health. Employers may also face legal risks, including lawsuits and regulatory penalties, which can further impact their reputation. Employers should prioritize compliance with pay transparency requirements to mitigate these risks and help maintain a positive reputation.”
Read: Only 16% of Canadian employers have implemented pay transparency strategy: survey