Pay equity
Pay equity means jobs mainly done by women are paid the same as jobs mainly done by men when the work is of equal value, even if the jobs are different.
Also called: equal pay for work of equal value, pay equity plan, gender pay equity, comparable worth
What pay equity means
Pay equity is the principle of equal pay for work of equal value. It asks whether jobs mostly done by women (female job classes) are paid less than different jobs mostly done by men (male job classes) that are worth the same to the employer, measured by things like skill, effort, responsibility and working conditions.
It goes further than equal pay for the same job. Pay equity compares different jobs, such as a receptionist and a warehouse worker, that may be of equal value to the business.
Some jurisdictions have specific pay equity laws that require employers above a certain size to review their jobs and fix any gaps. Others rely on human rights law and, for some, only the public sector is covered.
How it works
Where a pay equity law applies to you, the process usually follows the same steps. List your job classes and work out which are mainly female and which mainly male. Value each job using a gender-neutral method that looks at skill, effort, responsibility and working conditions. Compare pay for female and male job classes of similar value. Where a female job class is paid less, plan and make the adjustments.
Keep records of how you valued each job and why. Pay equity laws often require a written plan, and many require you to keep it up to date as jobs change.
Even if no pay equity law applies to your business, the same thinking is useful when you set pay. Write a clear job description for each role, decide pay ranges based on what the job involves rather than who usually does it, and review pay for similar-value jobs together.
Pay equity is different from pay transparency, which is about sharing pay information, for example by putting the pay range in a job posting. The two often appear together: Newfoundland and Labrador's law is called the Pay Equity and Pay Transparency Act.
Pay equity by province
Whether a pay equity law applies to private employers, and from what size, depends on where you are. We confirmed only the status of one law in this update.
| Where the work is done | The rule |
|---|---|
| Newfoundland and Labrador | The Pay Equity and Pay Transparency Act has passed. Its job posting rule takes effect when proclaimed and was not yet in force as of October 2026. |
We did not confirm which other provinces, or the federal government, have pay equity laws covering private employers, or the size thresholds. Check with your province's pay equity or human rights office.
Example: Comparing two different jobs
Amélie runs a 30-person food distribution company. Her office administrators are mostly women; her warehouse pickers are mostly men. Both jobs need similar skill and responsibility, and the pickers' physical effort is balanced by the administrators' accuracy and customer contact.
When Amélie compares pay, she finds the administrators earn $2.00 an hour less. She writes down how she valued each job, raises the administrators' pay to match, and checks the result with her province's pay equity rules.
Job descriptions in Staffkin
Staffkin's free job description templates help you write down the skills, effort, responsibilities and working conditions of each job, the facts a pay equity comparison starts from.
See the job description templatesFree tools and guides for this
Questions about pay equity
What is the difference between pay equity and equal pay?
Equal pay means paying men and women the same for the same job. Pay equity means paying the same for different jobs of equal value, comparing jobs mainly done by women with jobs mainly done by men.
Does pay equity apply to small businesses?
It depends on where you are and how many employees you have. Some pay equity laws apply only above a set number of employees or only to the public sector. Check your province.
Is pay equity the same as pay transparency?
No. Pay transparency is about sharing pay information, such as pay ranges in postings. Pay equity is about the fairness of pay between different jobs of equal value.
Related terms
Official sources
General information for Canadian employers, not legal advice. Rules differ by province and territory and change over time, so check with your provincial employment standards office (or the federal Labour Program if you are federally regulated) before you rely on it. See employment standards by province.
Checked against official sources on 4 November 2026.