First published on Wednesday, September 16, 2026
Last updated on Wednesday, September 16, 2026
This year, International Equal Pay Day lands on September 18. And for many, it's a reminder that “equal pay for equal work” is still an aspiration in most workplaces globally.
For Canadian employers, equal pay is more than a workplace best practice, it's also a compliance deadline many business owners may accidentally overlook. Pay equity legislation across the federal sector and multiple provinces now requires employers to proactively review compensation practices, not just react when someone complains.
Just how big is the pay gap?
The numbers haven't moved as much as anyone would like in recent years.
On a broad scale, the World Economic Forum estimates it will take 123 years to close the gender pay gap worldwide at the current pace.
Recent figures from Statistics Canada show that women over 15 years old earn an average of 88 cents for every $1 earned by men. And women in their prime earning years (25 to 54 years) earn 89 cents to the dollar.
And that gap isn’t the same across the board for all women. Racialized women earned just 78 cents for every dollar earned by non-Indigenous, non-racialized men. Indigenous women earned 79 cents.
It’s important to note that the pay gap is not only an issue relating to women. Pay gaps show up in other demographics like age, ethnicity, disability and immigration status. Whenever there’s a discrepancy in pay for equal work done, the law treats it all as discrimination. Canada currently has the second-highest gender pay gap in the G7, and the seventh highest among OECD countries.
What the law needs you to do
The Pay Equity Act (federal) and provincial pay transparency laws, along with human rights legislation, protects employees against wage discrimination. But as an employer, you’re obligated to remove any pay gaps before someone files a complaint.
A few noteworthy deadlines and compliance requirements to know include:
Most established federally regulated public and private sector employers had to post their final pay equity plans by September 3, 2024.
As of January 1, 2026, Ontario employers with 25 or more employees must include salary ranges (capped at a $50,000 spread) on job postings for roles paying $200,000 or less and disclose if AI is used in candidate screening.
Quebec requires a pay equity audit every five years, with fines of up to $45,000 for non-compliance.
Federal penalties for Pay Equity Act violations can reach $50,000 per violation, on top of retroactive wage corrections.
British Columbia’s Pay Transparency Act requires all employers with 50 or more employees to officially publish their annual gender pay gap reports by November 1, 2026.
Legislation around pay equity involves more than just your employee’s salary. The law also covers equal contractual terms, including vacation entitlements, benefits, and performance bonuses.
How you can stay compliant with equal pay laws in Canada
You don't need to completely overhaul your current payroll to stay in line with the law. Here are a few quick steps you can take starting today:
Put an equal pay policy in place. Make your commitment explicit, not implied.
Audit job descriptions and titles. The same role should carry the same title, regardless of who's in it.
Build pay bands for every role, based on responsibility level and experience, not on what someone was willing to accept.
Benchmark against market rate so your offers stay competitive and consistent.
Train hiring managers to recognize where bias creeps into compensation decisions.
Publish your pay ranges. Transparency builds trust and cuts off legal risk before it starts.
Fair pay is good business, not just good compliance
Equal pay shouldn’t only be about staying on the right side of the law. Employers who pay fairly protect their reputation, retain their best people, and send a clear signal to every job applicant that they value equal pay for equal work.
Need help closing the gap in your business?
BrightHR gives Canadian employers ready-made templates, pay equity guidance, and 24/7 expert advice, so you're not building your compliance plan from scratch. Book a free demo to see how it works.
