Pay Equity

A provincially-regulated business that employs ten (10) or more employees in Ontario is required to comply with Ontario’s Pay Equity Act. Pay Equity legislation is designed to “redress systemic gender discrimination in compensation for work performed by employees in female job classes.”  Pay Equity goes above “equal pay for equal work” and requires “equal pay for work of equal value.”   This means evaluating the work of jobs held primarily by females, and those held predominantly by males.  The jobs are to be compared on the basis of:

·         skill,

·       effort

·       responsibility

·       working conditions

There are also guidelines for assessing female-dominated jobs where there are no comparable male-dominated jobs in the company.

If a male-dominated comparator job pays more than a female-dominated job of the same value, a plan must be in place to raise the salaries of those in the female-dominated job to at least the same level.  The Pay Equity Plan must be posted in the workplace.

Generally, the method of comparing jobs is left to the employer.  There are a number of companies that provide job-evaluation methods (Hay, Mercer, and Towers-Watson to name three), and the Ontario government provides a useful Interactive Job Comparison Tool for small business employers.  Doing it oneself is also possible, but would require developing and validating a job analysis tool.

USEFUL LINKS: (provided for information only: I do not endorse any organization)

Pay Equity Commission:

Pay Equity Act:

Ontario Interactive job Comparison Tool:

Hay Job Evaluation:

Mercer International Position Evaluation System:

AON Willlis Towers Watson Global Grading System:

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