'We still sit at 52 out of 146 countries in regards to wage equality'
While some jurisdictions in Canada are better than others when it comes to mandating equal pay, there are some often subtle differences that must be accounted for by HR professionals who wish to pay employees fairly, and legally.
Recently, two experts discussed the current situation around equal pay along with employers’ legal obligations and best practices to ensure pay fairness.
According to Statistics Canada, the national average gender pay gap in 2022 was 89%, meaning that women make $0.89 for every dollar that men make. And when full compensation including salaries and commissions were accounted for, the figure was even less for women.
Pay equity may have improved in recent years, but there is a ways to go for pay equality.
Olivia Cicchini and Kiljon Shukullari of Peninsula Canada sat down with Canadian HR Reporter’s Jeffrey Smith to talk about the importance of equal pay in the workplace.
Some sobering statistics indicated just how far the country needs to go before true equality is achieved.
“According to the World Economic Forum, Canada ranks 21 out of 146 countries for women’s labour force participation. However, the country’s wage equality ranking sits at 52. So this shows us that despite our country ranking in the top roughly 14% regarding women’s participation in work, we still sit at 52 out of 146 countries in regards to wage equality,” says Cicchini.
A survey done by ADP, revealed that women are noticing the pay gap and are more likely to leave the organization when this happens.
Which provinces are banning unequal pay?
While these types of numbers show the fight for equality continues, there are some governments attempting to do the right thing, according to Shukullari.
“A lot of the Canadian jurisdictions have implemented pay equity laws, for example, private sector employers in Ontario with more than 10 employees, and those very regulated employers must abide by the applicable pay equity legislation. Now that’s Ontario; now in Manitoba, Nova Scotia, New Brunswick and P.E.I. they have pay equity legislation in place but only for public sector employers,” says Shukullari.
However, there are some specific times where unequal pay can be implemented legally, says Cicchini.
“It’s perfectly reasonable and perfectly legal for employers to consider the following factors when determining compensation for their staff. So things like education, work experience, responsibilities in the position, the longevity or tenure within the company, and of course, your company’s overall financial stability.”
“So for example, if one accountant has a decade more experienced than the other accountant working at the same firm the employer would definitely be within their rights to offer the more experienced professional a higher wage since that employee would presumably be able to take on more responsibility, delegate work, have less supervision and so on. However, unequal pay becomes illegal and more of an issue when you eliminate these factors and you still see those pay discrepancies that can only be described or based on race, gender or some other protected ground,” says Cicchini.
