Legislation coming into effect on August 30, 2021, is meant to help women receive fair compensation from all federally regulated employers.  It was created to help close the gender wage gap that still exists; and will be phased in over the next 3 years. 

The Act will require employers to pay women equal pay for work of equal value. It is intended to address Statistics Canada’s latest data that shows for every dollar earned by a man, a woman earns 89 cents.   It will not only focus on the wage gap between what men and women earn for the same job, but also look at issues in the woman-dominated sectors. 

Occupations in sectors such as social service and customer service are often filled by women who are generally undervalued and underpaid, the inconsistencies between their compensation and men’s have become even more evident during Covid-19.  Women have been facing inequality in the workplace for decades, the past sixteen months has only highlighted this issue. 

Why is it such a big deal?  Full time working women make 30% less money than their male equivalents.   As a result, a woman would have to work 14 years longer than a man in the same job to reach the same pay grade.  This means that if her male counterpart retired at age 65, she would have to work until age 79 to retire at the same income.  Considering most Defined Benefit Pension plans average the last five years of income to determine retirement benefits; this pay inequity doesn’t stop when we quit working.

In addition, women must face some sobering economic realities when planning their retirement.

Women live on average 3 years longer than men, and those that live to age 65 can anticipate living another 20.8 years.  The average age of widowhood for women is 56, while 83% of one-parent families are headed by women.

Once the act comes into effect, employers with 10 or more staff will have three years to develop and implement proactive pay equity plans.  Fines will be imposed against employers that do not comply. Ottawa plans to work with companies to help them understand the legislation and how it applies to them. 

This legislation has been a long time coming, it was 50 years ago that the Royal Commission on the Status of Women called for equal pay for equal work.  

Have a great weekend,

Go Canada!!

Tracey Marshall

Source: The Canadian Press; By: Tara Deschamps, July 7 2021, 13:43  TM07/23-21

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