Employers in Ontario are not required to give employees an annual pay raise. There is no law that guarantees a yearly salary increase simply because you have worked for the company for another year.
However, your employer may have to increase your pay if Ontario’s minimum wage rises above your current rate, your employment agreement guarantees an increase, or the way you are being paid violates employment standards, pay equity or human rights protections.
Samfiru Tumarkin LLP helps non-unionized employees across Ontario understand their compensation rights, respond to improper pay changes and determine whether a major reduction in compensation could amount to constructive dismissal.
⚠️ Offered a raise in exchange for signing a new employment contract?
Do not assume the document only changes your salary. A new contract can also add termination clauses, restrictive covenants or other terms that affect your rights if you lose your job. Have it reviewed before signing.
On This Page:
- 1. Are Pay Raises Required?
- 2. Minimum Wage Increases
- 3. How Often Should You Get a Raise?
- 4. Promised Raises
- 5. Coworkers Getting Raises
- 6. Promotion Without a Raise
- 7. Pay Cuts & Constructive Dismissal
- 8. Fired After Asking for a Raise
- 9. Common Questions
Does Your Employer Have to Give You a Pay Raise in Ontario?
No. Ontario employment law does not require an employer to give every employee an annual raise, cost-of-living increase or salary adjustment.
An employer can decide whether to give discretionary increases based on factors such as performance, seniority, responsibilities, market conditions or company compensation practices.
But there are important exceptions. Your pay may have to change where:
- Ontario’s minimum wage rises above your current rate
- Your employment contract guarantees a specific salary increase
- A compensation policy forms part of your employment terms and creates an enforceable entitlement
- Your rate of pay violates Ontario’s equal-pay or pay-equity requirements
- A decision about your compensation is discriminatory or retaliatory for exercising a protected legal right
💡 Important: Being a strong employee, receiving a positive performance review or going a long time without a raise does not, by itself, create a legal entitlement to a salary increase.
Does Your Employer Have to Give You a Raise When Minimum Wage Goes Up?
If your wage would otherwise fall below Ontario’s new minimum wage, your employer must increase it to at least the applicable minimum.
As of October 1, 2026, Ontario’s general minimum wage is $17.95 per hour.
If you already earn more than minimum wage, however, your employer does not have to increase your wage by the same dollar amount or percentage.
| Situation | Does your employer have to raise your pay? |
|---|---|
| You earn less than the new minimum wage | Yes. Your rate must be brought up to at least the applicable minimum wage. |
| You already earn above minimum wage | No. There is no automatic right to receive the same increase. |
| Your contract guarantees an increase | Potentially yes. The wording of the agreement needs to be reviewed. |
For the current rates and rules, read our guide to minimum wage in Ontario.
If minimum wage increases, should everyone else get a raise?
Not automatically. An employee earning $25 per hour does not have a legal right to an increase simply because the minimum wage rises.
Some employers voluntarily adjust other wages to preserve the difference between entry-level and more experienced positions. That is a compensation decision unless another legal or contractual obligation applies.
How Often Should You Get a Raise in Ontario?
There is no Ontario law requiring a raise after 6 months, one year or any other specific period.
Many employers review salaries annually, but an annual performance review does not necessarily mean an employee is entitled to a raise.
Your employer might review compensation:
- during an annual performance review
- after a promotion
- when your responsibilities substantially increase
- as part of a company-wide salary review
- to respond to changes in the labour market
Should you get a raise every year?
Not as a matter of law. Even if your employer has historically provided annual increases, whether that creates a legal entitlement depends on your contract, the employer’s policies, the consistency of the practice and what was communicated to employees.
What is a reasonable pay raise in Ontario?
There is no legally required percentage for a discretionary raise. What is considered competitive varies considerably by position, industry, experience, performance and labour-market conditions.
A raise that feels too small is not normally an employment-law violation simply because another employer might pay more for the same type of work.
What If Your Employer Promised You a Pay Raise?
A clear contractual promise is different from a manager saying that your salary will be “reviewed” or that a raise is “likely.”
If your written employment agreement states that your salary will increase by a specific amount on a specific date, your employer may be required to honour that term.
The wording matters. Compare these examples:
| Wording | What it may mean |
|---|---|
| “Your salary will increase to $80,000 on January 1.” | This is much more likely to create a clear contractual obligation. |
| “Your salary will be reviewed annually.” | A review does not necessarily guarantee an increase. |
| “You may be eligible for a merit increase.” | The employer may have discretion, depending on the complete wording. |
Keep copies of your employment contract, offer letter, compensation plan and written communications about the promised increase.
⚠️ Don’t sign a replacement contract just to receive a raise without reviewing the whole document.
The employer may be offering more money while also trying to limit your future severance rights in Ontario.
Can Your Employer Give Other Employees a Raise but Not You?
Yes, in many situations. Ontario employers are not required to give every employee the same raise.
Differences can legitimately arise because of factors such as:
- Performance
- Seniority
- Different responsibilities
- Experience or qualifications
- Production or commission results
- Market adjustments for particular positions
But an employer’s discretion is not unlimited. Compensation decisions can raise legal concerns where the difference is connected to discrimination, violates Ontario equal-pay requirements or breaches applicable pay-equity obligations.
What if you believe you are being paid less because of your sex, disability, race, age or another protected characteristic?
That can raise a different issue from simply being denied a discretionary raise. Ontario employees have protections against discrimination in compensation and other terms of employment.
Read our guide to workplace human rights in Ontario.
💡 Equal pay does not mean every employee must earn exactly the same amount.
Ontario’s rules permit certain legitimate differences in compensation. Whether a pay difference is lawful depends on why the difference exists and which legislation applies.
Can You Be Promoted Without a Pay Raise in Ontario?
Yes. A promotion does not automatically create a statutory right to higher pay. An employer and employee can agree to a new title or responsibilities without changing salary, provided applicable employment standards continue to be met.
But you should carefully review a significant change in duties before accepting it.
For example, moving into a substantially more demanding role without an agreed compensation adjustment may be something you want to negotiate before the change becomes permanent.
If your employer is changing your role without your agreement, see our guide to changes to your job description in Ontario.
Can your employer increase your responsibilities without increasing your pay?
Potentially. Employers can make reasonable changes to duties. The issue becomes more serious when the change is substantial and alters an essential term of the employment relationship.
A major unilateral change to your position can potentially raise constructive dismissal concerns, depending on the circumstances.
Can Your Employer Cut Your Pay Instead of Giving You a Raise?
A denied raise and a pay cut are not the same thing.
Your employer has much more freedom to keep your existing salary unchanged than it does to impose a major reduction in compensation you are already receiving.
A significant unilateral reduction to your salary, hourly wage, commission, bonus or other important compensation can potentially amount to constructive dismissal.
If that happens, you may be able to treat the employment relationship as terminated and pursue a full severance package.
⚠️ Your employer cut your pay?
Do not resign or simply accept the change before getting advice. Continuing to work under the new arrangement without objecting can affect your options.
Read our complete guide: Can My Employer Reduce My Wages in Ontario?
Can You Be Fired for Asking for a Raise in Ontario?
Simply asking for a discretionary raise does not normally give you special protection from termination. An employer can terminate a non-unionized employee without cause if it provides the employee with the notice or compensation legally required and the termination is not otherwise unlawful.
However, the situation is different if you are punished for asserting a protected legal right.
For example, Ontario’s Employment Standards Act prohibits reprisals against employees for certain actions such as asking an employer to comply with the Act, asking questions about ESA rights or trying to exercise those rights.
Human rights and workplace safety legislation also contain protections against reprisals in circumstances covered by those laws.
What if you are fired shortly after asking for a raise?
The timing alone does not automatically make the dismissal illegal. But you should have your termination package reviewed, particularly if your request involved unpaid wages, minimum wage, equal pay, discrimination or another legal entitlement.
If you have been let go, use our Severance Pay Calculator to estimate how much compensation you may be owed.
Pay Raises in Ontario: FAQs
Are annual raises mandatory in Ontario?
No. There is no general law requiring Ontario employers to increase every employee’s wages each year.
Do you legally get a raise after one year?
No. Completing one year of employment does not automatically trigger a salary increase unless your contract or another enforceable employment term provides for one.
Does your employer have to give you a cost-of-living raise?
No. Ontario employers are not normally required to increase an employee’s existing salary simply because inflation or the cost of living rises.
Can you ask your employer for a raise?
Yes. You can ask to discuss your compensation. Consider explaining how your responsibilities, performance, experience or market value have changed rather than assuming that length of service alone guarantees an increase.
Does an annual performance review guarantee a raise?
No. A requirement to review your salary is not necessarily a requirement to increase it. The exact wording of your employment agreement or compensation policy matters.
Can your employer take back a raise after announcing it?
It depends on whether the increase had actually become part of your agreed compensation and what was communicated. An employer changing a future discretionary proposal is different from reducing compensation that you are already contractually entitled to receive.
If the change is significant, get advice before agreeing to it.
Can your employer freeze your salary?
Yes, provided your existing rate continues to meet employment standards and the freeze does not breach your contract, discriminate against you or violate another legal obligation.
Does working harder or taking on more responsibilities legally entitle you to a raise?
Not automatically. But substantial changes to your duties can affect your employment rights, particularly if the employer fundamentally changes your position without your agreement.
What if you are unionized?
Pay increases for unionized employees are governed by the collective agreement. Contact your union about wage rates, salary grids, negotiated increases and grievances. Samfiru Tumarkin LLP’s employment law team does not assist with unionized workplace disputes.
Concerned About Your Pay or a Change to Your Compensation?
Not receiving a raise is usually different from having your existing compensation reduced or being denied money that you are legally owed.
If your employer has cut your salary, broken a compensation agreement, asked you to sign a new contract for a raise, discriminated against you or fired you after you raised a workplace-rights issue, get advice before deciding what to do next.
The employment lawyers at Samfiru Tumarkin LLP help non-unionized employees across Ontario understand their rights and pursue the compensation they are legally owed.
Before you sign, always check first.
➡️ Contact an Ontario Employment Lawyer or call 1-855-821-5900.