441-01887 (Social affairs and equality)

The Government of Canada is committed to addressing the persistent wage gap that exists for Canadian women, a gap that is even more pronounced for underrepresented women, including Indigenous and racialized women. Many factors can impede women’s earning ability and contribute to the gender wage gap, including discrimination, working hours, and parenthood. Lack of affordable childcare, for example, can result in women taking on a greater share of caregiving responsibilities and having less time for paid work. Access to childcare also promotes greater gender equality by allowing more parents, particularly mothers, to participate in the workforce and achieve greater economic security. It also improves and grows the female-dominated early childhood educator workforce. This is why the Government of Canada invested $30 billion over five years in Budget 2021 to build a Canada-wide Early Learning and Childcare System. As of July 2023, the Childcare System has supported a record 85.7 per cent labor force participation rate for women in their prime working years. The $10 a day childcare program not only is saving families money, but it is increasing women’s participation in the workforce.

And while having affordable childcare helps allows women to remain in the workforce, more women still need more opportunities to thrive in leadership positions. Which is why in September 2023, Women and Gender Equality Canada launched the Women’s Economic and Leadership Opportunities Fund Call for Proposals to support projects working to change systems to improve women's economic security and prosperity, as well as women’s representation in leadership.

Women and Gender Equality Canada can receive project ideas on an ongoing basis when funds are available as a tool to address gaps in the economy as they arise.

We know that equal and full participation of women in the workplace matters to our economy, but it is also important to ensure women have independent financial security. Yet, women still remain underrepresented in certain high paying industries and occupations, such as in the construction sector and in leadership positions. Our government recognized this gap, so in Budget 2021, the Government of Canada invested $146.9 million over four years to expand the Women Entrepreneurship Strategy by providing greater access to financing, mentorship, and training for women to support women owned businesses. In Budget 2022, $84.2 million over four years was invested in the Union Training and Innovation Program to help apprentices from underrepresented groups begin and succeed in skilled trades careers.

Achieving pay equity is a key factor in addressing the gender wage gap. In 2018, Proactive Pay Equity legislation was passed, with regulations coming into force in August 2021, to ensure that women and men working in federally regulated workplaces receive equal pay for work of equal value. The work on this issue is ongoing but there is growing momentum across government departments with many employers working to advance the pay equity process. You can read more about the progress of pay equity in Canada by reading the Pay Equity Commissioner’s annual 2022 report here.

Our government will continue to build reflect on our progress to advance gender equality in Canada and reaffirm our commitment to building a more equal and inclusive country where everyone can reach their full potential.

The Government strongly believes in the principle of equal pay for work of equal value and the fair treatment of all workers, regardless of gender.

That is why we introduced An Act to Establish Proactive Pay Equity in the Federal Public and Private Sectors (the Pay Equity Act) in the House of Commons on October 29, 2018. The Pay Equity Act and associated regulations received Royal Assent on December 13, 2018, and came into force on August 31, 2021. The Pay Equity Act establishes a proactive pay equity regime to protect the right to equal pay for work of equal value in federally regulated workplaces, including the federal private and public sectors, parliamentary workplaces, and the Prime Minister's and ministers' offices.

The pay equity regime requires federally regulated employers with ten or more employees to take proactive steps to correct gender wage gaps within their organizations. Among other obligations, employers are required to establish a pay equity plan within three years of becoming subject to the Pay Equity Act and ensure plans are updated at least every five years. The objective of the plan is to identify and eliminate wage gaps for jobs that are commonly held by women and receiving less pay than their male counterparts.

The Pay Equity Act is administered and enforced by the Pay Equity Commissioner, who is a member of the Canadian Human Rights Commission (CHRC). The current Commissioner was officially appointed to serve a five-year term on November 1, 2023. To support the Commissioner's ability to address non-compliance, a system for administrative monetary penalties (AMPs) has been developed and posted in the Canada Gazette, Part I for public consultation. The final regulations are expected to become operational in 2024. The objective of the regulations is to enable the Commissioner to levy penalties for prescribed violations of the Pay Equity Act and Pay Equity Regulations in a manner that is non-punitive.

While this legislation is an important step towards closing the gender wage gap, proactive pay equity alone cannot close the gap. It needs to be part of a broader array of policy tools to address the gender wage gap and advance gender equality in the workplace. In addition to pay equity, the Government has taken action on a variety of legislative and non-legislative measures to address the issues facing women in the workplace, including pay transparency through pay gap reporting.

In 2021 amendments were made to the Employment Equity Act and Regulations that require federally regulated employers with 100 or more employees to report on aggregated pay gaps experienced by women, Indigenous peoples, persons with disabilities and members of visible minorities. 

A new online tool is being developed that will provide Canadians with user-friendly, online information on these employer pay gaps. This will shed light on the wage gaps that exist for women, visible minorities, Indigenous peoples, and persons with disabilities. In addition, it will keep employers accountable for their compensation practices while highlighting and encouraging those that are leading in equitable practices.