Let’s talk about equal pay

Pay equity regulations across the federal sector and multiple provinces urges employers to proactively examine their compensation practices, to ensure they're providing equal pay to workers of all genders doing work of equal value.

Why is equal pay so important?

According to a report published by Statista in 2024, women in Canada earned on average, 0.73 dollars for every dollar earned by men,meaning we still have a long way to go before true equality…

Young Canadians aged 16-24 (0.82) and those over 65 (0.79) saw the smallest pay gaps between men and women. However, women aged 35-44 and 55-64 earned, on average, just two-thirds of what men in the same age groups earned.

It'll take 169 years to close the gender pay gap worldwide.

Reporting and understanding equal pay is crucial for employers to help promote workplace equality, ensure fair pay practices, and remain on the right side of the law.

While the gender pay gap often receives the most attention, it’s important to recognize that pay disparities can also affect young people, people from different ethnic backgrounds, and individuals with disabilities too.

What does the law say about equal pay

The Pay Equity Act and pay transparency legislation as well as Human Rights Law protect employees against wage discrimination, but it’s not just pay that the law applies to.

You also can't discriminate against employees based on gender; employees must receive equal contractual terms and conditions, like vacation entitlements, benefits, and performance-based bonuses.

How can my business remain on the right side of the law?

As a business owner, it can be difficult to know what protections you need to put in place to make sure your staff are paid and treated fairly.

To reduce your legal risks, it’s best practice to:

• Have an equal pay policy in place to protect your staff and your business
• Make sure your job descriptions are up-to-date and accurate
• Check that your job titles are the same, no matter the gender of your employee
• Provide better training for hiring staff to reduce pay discrimination
• Establish fair pay scales or pay grades for each of your roles based on the position, level of responsibility, and experience.
• Use a salary calculator tool to keep your pay offering equal and at market rate.
• Promote pay transparency to build trust and help close the gender pay gap.

Failing to follow the law on equal pay could result in your employees taking legal action against you. In this scenario, it’s best to seek expert advice.

But equal pay isn’t just important for legal reasons—paying staff fairly in your business keeps your reputation squeaky clean, motivates staff, and forms a key pillar of your social responsibility and culture. All of these are essentials for most job seekers, helping you attract and retain top talent.

Need more support from BrightHR?

Keeping on top of evolving rules about equal pay can be difficult, but there is an easier way! Speak to one of our friendly experts to see how BrightHR can support you with ready-made templates, guides, documents, and 24/7 advice.

Book a free demo today, or call 1 888 220 4924.

Or, for instant answers on over 10,000 HR and health & safety questions, feel free to ask our superfast AI tool Bright Brainbox: ‘Do employers have an obligation to guarantee equal pay?’