Budget 2018: historic pay equity legislation will help close gender wage gap

March 2, 2018              London, Ontario                      Employment and Social Development Canada

A strong middle class depends on a job market where both women and men have a real and fair chance at success. When Canadian women can count on equal pay for work of equal value, our economy grows stronger, families prosper, and communities thrive.

That’s why, in Budget 2018, the Government of Canada announced that this year it will introduce proactive pay equity for workers in federally regulated sectors. It is estimated that through this legislation alone, the gender wage gap can be moved from 88.1 cents to 90.7 cents in the federal private sector alone. This is part of the Government’s commitment to breaking down barriers to gender equality in education, employment and entrepreneurship, so that women and girls can contribute to—and benefit from—Canada’s success and prosperity.

Today, the Honourable Patty Hajdu, Minister of Employment, Workforce Development and Labour, was in London to highlight Budget 2018 and to discuss how proactive pay equity can help close the gender wage gap.

The Government will continue its ongoing consultations with employers, workers and other stakeholders in the coming months to ensure pay equity will be applied fairly and effectively.

While proactive pay equity legislation is an important tool to close the gender wage gap, it needs to be part of a broader array of policy tools, such as the Government’s investments in early learning and child care, better training and learning financing, enhanced parental leave flexibility, pay transparency, and the continued appointment of skilled, talented women into leadership positions.