News Compensation Legislation
Pay equity law helping to close gender wage gap to come into effect Aug. 31

OTTAWA — The federal government says legislation meant to help close the gender wage gap will come into effect on Aug. 31 and be phased in over the next three years.

The Pay Equity Act requires federally regulated employers to ensure workers receive equal pay for work of equal value and is meant to help women get fair compensation for their labour.

Statistics Canada’s latest data shows for every dollar earned by a man, a woman earns 89 cents.

Once the act comes into effect, employers with 10 or more staff will have three years to develop and implement proactive pay equity plans.

The plan must involve studying whether work done primarily by women receives pay equal to work done by men, making adjustments to ensure there is wage equity and posting plans for staff to see by August 2024.

Pay equity commissioner Karen Jensen will be able to levy $30,000 fines for employers with up to 99 staff that don’t comply and $50,000 fines for those with larger workforces.