What Is Pay Equity?


The Ontario Pay Equity Act has been in place for more than twenty-five years. This legislation applies to most private and public sector employers with 10 or more employees.

The purpose of the law is to address pay practices which result in female employees being paid less than male employees in comparable jobs. This applies to both unionized and non-union employers.

It is not unusual that employers are unknowingly in violation of the Pay Equity Act. Some may have created a Pay Equity Plan years ago and have not fulfilled the obligation to periodically maintain it.

Many smaller employers are unaware that they must achieve a Pay Equity Plan if they have had 10 or more employees at any time since 1987.

Today, these businesses still have legal compliance obligations under the Pay Equity Act and there is no defense for non-compliance.

  • Determination of job classes and their gender status
  • Development of complete and accurate job descriptions
  • Job Evaluation using a gender neutral comparison system
  • Pay Equity analysis of the valuation of all female and male job classes
  • Determination of any required adjustments and applying them
  • Posting of a Pay Equity Plan
  • Reviewing new jobs as they are created to ensure appropriate wage rates
  • Periodically review any jobs for changed circumstances and reevaluate them
  • Revise your Pay Equity Plan and publish a Pay Equity Maintenance Plan on a regular basis.