By TAP Network
On January 1, 2026, Ontario will usher in a new era of employer transparency. Under the Working for Workers Four Act (Bill 149), employers with 25 or more employees must include expected compensation or a salary range in all publicly advertised job postings, among other obligations.
But for forward-thinking organizations, this isn’t just a legal checkbox. It’s a strategic inflection point — an opportunity to strengthen trust, clarify how you reward people, and stay ahead in talent competition.
On October 3rd, TAP Network partnered with Mercer to host a special session, Decoding Tech Compensation: 2025 Data Reveal and Pay Transparency Roadmap. The discussion brought together People & Culture leaders from across Canada’s tech sector to explore the latest compensation trends from TAP Network’s 2025 Tech Sector Salary and Total Rewards Survey and prepare for Ontario’s new pay transparency legislation, coming into effect January 1, 2026.
Presenters from Mercer shared global insights, national data, and practical strategies to help employers navigate this fast-evolving landscape.
Why Pay Transparency is Rising to the Top of HR Agendas
Mercer’s experts emphasized that pay transparency and pay equity, while related, are not the same.
- Pay equity ensures fair compensation for similar work, regardless of gender or race.
- Pay transparency focuses on communicating what, why, and how employees are compensated.
Both are increasingly critical as legislation and employee expectations evolve. Over the past two years, five Canadian provinces have adopted or proposed salary disclosure requirements — and Ontario’s upcoming rules will accelerate the shift toward open pay practices nationwide.
Globally, Mercer noted, countries are at different stages of this journey: the U.S. and EU now require communication of pay ranges, while others focus on pay gap reporting. The direction, however, is unmistakable — transparency is becoming a business norm.
What Ontario’s New Legislation Requires
Beginning January 1, 2026, Ontario employers will need to include the expected salary or salary range in all publicly advertised job postings.
Some key details include:
- Ranges may not exceed $50,000 in width.
- Employers are exempt if the job’s total compensation exceeds $200,000 per year.
- Employers cannot penalize employees for discussing their pay.
These changes, while straightforward on paper, raise practical questions for employers — especially around how to determine, standardize, and communicate salary ranges effectively.
How Organizations Are Responding
Data from Mercer’s 2025 Canada Compensation Planning Survey shows that most employers are still refining their approach:
- A growing share of companies are preparing to share ranges nationally, not just in provinces where required.
- Employers are testing different methods to define posting ranges — from using current salary bands to developing new range frameworks within the $50K limit.
- Many HR teams are also re-evaluating their compensation philosophies, job architectures, and internal communications to ensure consistency before public disclosure begins.
Mercer projects that by January 2026, more than half of Canadian employers will be either complying or voluntarily expanding their pay transparency practices beyond minimum requirements.
Mercer’s Framework: From Compliance to Leadership
Mercer shared a helpful model describing three organizational stages of pay transparency readiness:
| Stage | Focus | Approach |
| Comply | Legal minimums | Posting required ranges, minimizing risk |
| Transform | Beyond compliance | Building internal structures, training managers, and communicating purpose |
| Lead | Cultural differentiator | Embedding transparency into strategy, publishing philosophies, and setting industry benchmarks |
For most employers, Mercer recommends focusing on the “Transform” stage first — establishing the foundations that enable confident, credible communication.
Preparing for the Future: Mercer’s Expert Guidance
Mercer’s consultants outlined several key actions for organizations preparing for 2026:
1. Clarify your compensation philosophy.
Define how you make pay decisions — and make sure that rationale is clearly communicated internally before it goes public.
2. Audit pay equity and job architecture.
Ensure your internal data and structures support fairness and consistency before disclosure.
3. Equip your managers.
Managers will be at the front lines of employee questions once ranges become public. Invest in training and talking points now.
4. Build a communication and change strategy.
Transparency requires trust. Mercer advises creating clear messaging that connects pay practices to your employee value proposition.
5. Engage and listen.
Transparency is a journey, not an event. Mercer emphasized the importance of ongoing employee feedback and engagement.
The Takeaway: Move Early, Move Intentionally
Ontario’s legislation will make pay transparency a legal requirement — but Mercer’s guidance reminds us that the real opportunity lies in using it as a strategic advantage.
Companies that treat this as a strategic shift rather than a compliance chore can deepen trust, reduce ambiguity, and differentiate themselves in a tight talent market.
As the deadline looms, the essential question isn’t “Will we comply?” but “How intentional and credible will our transparency be?”
Looking Ahead
As Ontario’s 2026 Pay Transparency Mandate approaches, TAP Network will continue partnering with Mercer to help tech employers prepare with confidence.
If your organization needs comprehensive Canadian salary and total compensation data, consider TAP Network’s Tech Sector Salary and Total Rewards Survey Report as a primary or secondary data source to drive confident pay decisions. If your organization would benefit from expert guidance or a readiness assessment, connect with Mercer’s team to evaluate your programs and define next steps.
Together, we can turn compliance into an opportunity to strengthen trust, equity, and transparency across Canada’s tech sector.
