Pay Equity

On this page

• Why we are developing pay equity plans
• Implementing pay equity
• Roles and responsibilities
• Key milestones
• Related links

The Pay Equity Act was passed by Parliament and received royal assent on December 13, 2018. The act came into force on August 31, 2021.

The purpose of the act is to achieve pay equity for employees in jobs that are commonly held by women by addressing gender-based discrimination in the pay practices and systems of employers.

The Government of Canada is committed to creating an inclusive public service where women receive equal pay for work of equal value.

Why we are developing pay equity plans

Historically, work predominantly done by women has been under-compensated in Canada.

The purpose of a pay equity plan is to identify gaps between the compensation of jobs held mostly by women and those held mostly by men that involve work of equal value.

Developing pay equity plans will close pay gaps by increasing compensation for employees who occupy positions in predominantly female job classes.

The act affects approximately 4,600 employers and 1.3 million employees across Canada.

As the employer, the Treasury Board of Canada Secretariat (TBS), in conjunction with bargaining agents and non-unionized representatives, is developing 2 pay equity plans:

1. a plan that encompasses employees in the core public administration (CPA)
2. a plan that covers members of the Royal Canadian Mounted Police (RCMP)

Separate agencies and federal sector employers must develop their own pay equity plans.

Implementing pay equity

The Pay Equity Act defines a process to develop pay equity plans that all employers must follow. Plans must be developed within 3 years of the coming into force of the act on August 31, 2021. However, employers can apply to the Pay Equity Commissioner for an extension if they believe they need more time.

The process to develop a pay equity plan includes a series of steps that must be agreed on at a pay equity committee with representatives from the employer, the bargaining agents and non-unionized employees. These steps include:

• identifying the job classes of positions in the workplace
• determining whether the job classes are predominantly female or male
• determining the value of the work performed in each predominantly female and male job class
• comparing the compensation of each predominantly female job classes with predominantly male job classes that involve work of equal or comparable value
• identifying the wage gaps to ensure that female predominant job classes receive equal pay for work of equal or comparable value

Given the diverse and complex roles of female and male predominant jobs in the core public administration that must be assessed, the pay equity committees will need to work collaboratively in the spirit of the act to uphold the right to equal pay for work of equal value.

With a population of over 250,000 federal public servants, TBS is the largest employer subject to the act, as well as the largest employer in the country. Given the size and scope of the CPA, this brings a high level of complexity to this important exercise.

Roles and responsibilities

Key milestones

TBS, along with the 17 bargaining agents that represent employees within the CPA and representatives of non-unionized employees, continues to move forward steadily on the important work of establishing a pay equity plan for the CPA. The RCMP, with their 5 bargaining agents and TBS, also continues to work toward a pay equity plan for members of the RCMP.

Related links

• Pay Equity Act
• Compensation of women and men in the federal public service
• Evolution of pay equity
• Canadian Human Rights Commission – Pay Equity