Pay equity in Canada has evolved over decades, rooted in the principle of eliminating gender-based wage discrimination. The journey began in the mid-20th century, with the introduction of equal pay for equal work laws in the 1950s and 1960s. These laws mandated that men and women performing the same job receive equal compensation.
However, this concept was limited, as it did not address the systemic undervaluation of work typically performed by women. In response, a broader principle—equal pay for work of equal value—emerged in the 1970s. This approach recognizes that jobs predominantly held by women, although different from those held by men, may require similar levels of skill, effort, responsibility, and working conditions, and therefore should be compensated equally.
What is pay equity?
Pay equity, often referred to as equal pay for work of equal value, is a principle aimed at ensuring that jobs predominantly held by women are compensated equally to those predominantly held by men when both job types are of similar value. This is not about comparing the same jobs (like a male and female truck mechanic earning the same wage), but rather comparing different jobs of equal value (such as a truck mechanic and an account technician).
The Government of Canada has emphasized gender equality and has enacted the Pay Equity Act, effective since August 2021, which requires employers to proactively establish pay equity plans within three years. This Act is designed to address and correct gender-based wage disparities in the federal sector.
The purpose of the pay equity is outlined in section 2 of the Pay Equity Act:
2 The purpose of this Act is to achieve pay equity through proactive means by redressing the systemic gender-based discrimination in the compensation practices and systems of employers that is experienced by employees who occupy positions in predominantly female job classes so that they receive equal compensation for work of equal value, while taking into account the diverse needs of employers, and then to maintain pay equity through proactive means.
Why is pay equity important?
Pay equity is crucial because it tackles the systemic undervaluation of work traditionally done by women, a key factor contributing to the gender wage gap. Recent statistics on the gender pay gap in Canada from Statistics Canada indicate that the gap persists despite some improvements over time. As of 2022, the gender wage gap for full-time workers aged 20 to 54 was approximately 12%, down from 16% in 2007. By ensuring pay equity, we aim to close this gap and promote fair compensation practices.
What pay equity is not
It is important to distinguish pay equity from equal pay for equal work, which involves paying individuals equally for doing the same job. Pay equity, on the other hand, focuses on ensuring that different jobs with comparable value receive equal pay.
Equal pay for equal work: This principle mandates that men and women who perform the same job, with the same duties and responsibilities, should receive the same pay. It addresses wage gaps where men and women are paid differently for identical roles.
Equal pay for work of equal value (pay equity): This concept goes further, recognizing that different jobs can be of equal value in terms of skills, effort, responsibility, and working conditions, even if they are not identical. It aims to address gendered occupational segregation, where jobs traditionally held by women (e.g., caregiving roles) are undervalued compared to jobs traditionally held by men, despite being of equal complexity or importance.
Was pay equity a concept only developed recently in federal jurisdiction?
No, pay equity is not a recent concept in Canada's federal jurisdiction, but it has undergone significant development over time. The principle of equal pay for equal work was first introduced at the federal level in the mid-20th century, and the broader concept of equal pay for work of equal value has been recognized for several decades.
Key developments in federal pay equity:
1977: The Canadian Human Rights Act was a major milestone, introducing the principle of equal pay for work of equal value in federally regulated industries. This Act made it illegal for employers to discriminate between men and women in wages for work of equal value. However, enforcement was complaint-based, meaning that employees had to bring forward claims of inequity themselves.
2018: The federal Pay Equity Act was passed, marking a significant shift from the earlier complaint-based approach to a proactive model. This Act, which came into effect in 2021, requires federally-regulated employers to proactively develop and implement pay equity plans. It aims to eliminate gender-based pay discrimination more comprehensively by ensuring fair compensation across gendered roles in different sectors.
The concept of pay equity has therefore been recognized in federal legislation for decades, but its approach has evolved from reactive to proactive measures. While the federal Pay Equity Act introduced a more structured framework to ensure compliance, the fundamental idea of pay equity has been present in Canada's legal framework since the late 1970s.
What is employment equity?
Employment equity, distinct from pay equity, aims to create a diverse and inclusive workplace by removing barriers to employment for four designated groups: women, Indigenous peoples, persons with disabilities, and members of visible minorities. This involves proactive measures to promote equal opportunity and treatment in hiring, training, and promotions, ensuring that these groups are adequately represented at all levels of the organization.
The purpose of the employment equity is outlined in section 2 of the Employment Equity Act:
2 The purpose of this Act is to achieve equality in the workplace so that no person shall be denied employment opportunities or benefits for reasons unrelated to ability and, in the fulfilment of that goal, to correct the conditions of disadvantage in employment experienced by women, Aboriginal peoples, persons with disabilities and members of visible minorities by giving effect to the principle that employment equity means more than treating persons in the same way but also requires special measures and the accommodation of differences
Differences between pay equity and employment equity
While both pay equity and employment equity seek to promote fairness and equality in the workplace, they address different issues, pay equity focuses on ensuring equal pay for work of equal value, addressing gender-based wage disparities, while employment equity aims to achieve a representative workforce by removing employment barriers for women, Indigenous peoples, persons with disabilities, and visible minorities.
CAPE's commitment
CAPE is dedicated to advocating for fair pay practices and promoting an equitable work environment. We support the implementation of effective pay equity plans and are actively involved in ongoing employment equity projects to ensure all public sector employees are valued and respected.
