Do NON contract iPhones get upgrades?

I'm getting a non-contract iPhone 5 in a few months. We're going with the non-contract one because even though it's $550, its only $45 a month for unlimited everything except data, and my dad rather spend more money on the phone and less a month, then $100-200 on the phone and like $80 a month because that would add up fast, plus we can't getting a family plan because he and my mom don't want iPhones.
So I was wondering if non-contract phones get upgrades?

This doesn't answer it, but I just got my iphone 5 for 50$ at Rogers (in Canada, i don't know where you live) and its 60$ a month. Pretty good deal Id say.

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