Pay Equity Information Guide

This guide provides information on the steps to achieving pay equity, explaining the four factors used to assess the value of work (skill, effort, responsibility, and working conditions). The Canadian Federal Government has provided resources to assist federallyregulated employers to comply with the current pay equity legislative requirements found in section 11 of the  Canadian Human Rights Act (CHRA), the Equal Wages Guidelines, 1986, (Guidelines) and sections 182 and 249 of the Canada Labour Code , Part III. Private sector employers and employees seeking to advance pay equity or narrow the wage gap within their workplace can access these resources.

These four factors include: the concept of establishment; a scale to evaluate gender predominance; and reasonable factors that may justify different wages for work of equal value.

For non-unionized companies, the guide recommends a four-step plan to implement pay equity:

Step 1: Project Initiation

• Consultation to establish ground rules
• Assemble a job evaluation committee or hire external consultant
• Clear communication with employees about the goals of the program and their work status throughout

Step 2: Job Analysis, Documentation, and Evaluation

• Determine the establishment (employees vs. contractors)
• Analyze the employee population (identify occupation groupings and gender predominance)
• Choose a job evaluation plan that addresses criteria of skill, effort, responsibility, and working conditions
• Document and analyze the jobs (collect qualitative and quantitative information about jobs)
• Evaluate the jobs, not the people working those jobs
• Determine if wage gaps exist (direct and indirect)
• Determine the wage rate
• Plot and compare pay lines
• Determine whether any part of the wage gap is due to systemic gender discrimination
• Review pay administration practices (e.g. time required to reach wage rate given a satisfactory performance; different performance rating criteria for different occupational groups; different entry level wages for men and women; and different salary range structures for jobs of equal value)

Step 3: Implementation

• Calculate the total amount required to eliminate the inequities (if found)
• Establish a schedule and methodology for implementing pay equity

 Step 4: Maintenance and Review

• Establish a system of periodic pay equity reviews