What Is It?
Pay equity is the principle that jobs predominantly done by women should be paid the same as jobs of comparable value done predominantly by men — even if the jobs are very different. This is distinct from equal pay for equal work (same pay for the same job) — pay equity addresses systemic undervaluation of female-dominated work categories.
Canada has both federal and provincial pay equity legislation, and recent reforms have significantly strengthened enforcement.
Federal Pay Equity Act (2021)
The federal Pay Equity Act came into force on August 31, 2021. It applies to federally regulated employers with 10 or more employees, including:
- Federal departments and agencies
- Crown corporations (CBC, Canada Post, Via Rail, etc.)
- Federal Crown-chartered banks (RBC, TD, BMO, etc.)
- Airlines, railways, interprovincial trucking
- Telecommunications companies (Bell, Rogers, Telus)
What employers must do:
- Establish a pay equity committee (for employers of 100+)
- Identify job classes that are predominantly male or female
- Evaluate the value of the work in each class (skill, effort, responsibility, working conditions)
- Calculate and close gaps between comparable male and female job classes
- Post a pay equity plan within 3 years of the Act applying (by 2024 for most)
- Update the plan every 5 years
What employees can do:
- Review the posted pay equity plan when published
- File a complaint with the Pay Equity Commissioner (within the Canadian Human Rights Commission) if the employer has failed to comply, has posted an inadequate plan, or has retaliated against you for exercising pay equity rights
Provincial Pay Equity Laws
Ontario: Pay Equity Act (1987) — applies to private sector employers with 10+ employees and all public sector employers. Ontario has had proactive pay equity obligations for decades.
Quebec: Pay Equity Act (1997) — applies to employers with 10+ employees. Quebec has among the strongest pay equity enforcement in Canada.
New Brunswick, Nova Scotia, PEI, Manitoba: Apply to the broader public sector.
BC, Alberta, Saskatchewan: Rely primarily on equal pay provisions in human rights codes (same pay for substantially similar work in the same establishment), not proactive pay equity obligations.
The Difference From Equal Pay Complaints
Equal pay for equal work (all jurisdictions): If a woman is paid less than a man for doing the same or substantially similar job in the same workplace, she can file a human rights complaint — this is direct wage discrimination.
Pay equity (specific jurisdictions above): Addresses the broader systemic undervaluation of female-dominated job classes — e.g., a healthcare aide (female-dominated) compared to a skilled tradesperson (male-dominated) who are paid differently despite comparable job value.
What Most People Don’t Know
- Federally regulated employers are required to post their pay equity plans publicly. Check your employer’s website or internal HR portal — if they haven’t posted a plan by the required date, this is itself a violation.
- Retaliation for exercising pay equity rights is prohibited. Raising pay equity issues or filing a complaint cannot be used as grounds for discipline or termination.
- The complaint process is free at the Pay Equity Commissioner. You do not need a lawyer to file an initial complaint.
- Pay equity adjustments are not automatic — employees must actively check whether their employer has complied and file complaints for violations.
Frequently Asked Questions
I work for a private company in Ontario with 20 employees. Do pay equity rules apply to me?
Yes — Ontario’s Pay Equity Act applies to private sector employers with 10 or more employees. Your employer must have a pay equity plan, and you can check whether it’s been implemented.
My employer says they don’t have any “predominantly female” job classes. Is that a valid excuse?
Under the Ontario and Quebec acts, job classes are “predominantly female” if 60% or more of employees in the class are women, or if the position is historically associated with female work. If your employer has misclassified job classes to avoid the obligation, this is a compliance failure that can be challenged.
Where do I file a federal pay equity complaint?
File with the Pay Equity Commissioner at the Canadian Human Rights Commission: chrc-ccdp.gc.ca/en/pay-equity.
How long does a pay equity complaint take to resolve?
Federal complaints can take 1–3 years through the full process. The Pay Equity Commissioner has mediation and investigative powers. Provincial processes vary by jurisdiction.