Pay equity: Federally regulated employers owe female workers average of $2.37 per hour

Federally regulated employers that have filed their first pay equity reports owe female employees an average of $2.37 more an hour — with gaps above 30% in parts of banking — the Canadian Human Rights Commission (CHRC) says, turning pay equity into a back-pay liability HR teams must now budget for.

The figures come from the Pay Equity Commissioner's 2025-2026 Annual Report, released by the CHRC, which administers the federal Pay Equity Act. Of 643 annual statements filed so far — about 12% of covered employers — 129, or nearly 20%, reported owing increases to female-predominant job classes.

Small employers reported the highest average adjustments, at $2.69 an hour, while medium and large organisations mostly reported below-average increases of $1.99 to $2.42.

Widest gaps reported in banking and trucking

The steepest gaps were concentrated in two sectors. In banking, medium and large non-unionised employers reported adjustment gaps above 30%, while small non-unionised road transportation employers reported gaps of about 25%.

For HR teams, those percentages are dollars owed and budgets to plan. Filing compliance varied by sector, led by road transportation at 37.8% and air transportation at 18%.

Non-unionised employers reported far higher compliance than unionised ones — in air transportation, 29.6% compared with 7.2% — suggesting HR teams in unionised workplaces should allow longer timelines for committee processes.

Commissioner highlights legal obligation

In her opening message, Pay Equity Commissioner Lori Straznicky cast equitable pay as a binding duty:

"Equal pay for work of equal value is a fundamental human right and closing the wage gap benefits everyone. When workplaces are diverse and inclusive, they foster broader perspectives, stronger decision-making, and greater economic growth. Across Canada, women's participation in the workforce is strong, and it continues to grow. This progress presents an important opportunity to ensure women are recognized and compensated fairly for the value of their work."

She tied that to the legislation, writing that "wage equality is not optional, it is an obligation grounded in human rights and economic fairness" — framing pay equity for HR as a compliance requirement, not a voluntary initiative.

The Commissioner called the effort unfinished, writing that "systemic inequities require systemic solutions." Statistics Canada data cited in the report show the gender wage gap still ranges from 5.9% for workers aged 15 to 24 to 16.6% for those 55 and older.

Disputes fall as WestJet decision heads to appeal

Workplace parties filed 34 disputes during the year; 12 were closed, two through formal decisions and 10 withdrawn. The key ruling, Unifor et al. v WestJet (2025 PEC 08), clarified employer obligations on confidentiality during implementation.

That decision is under appeal at the Canadian Human Rights Tribunal, an outcome HR should track because it will shape how much information employers must share with committees and bargaining agents.

Demand for procedural relief eased: authorization requests, 94% of them extension bids, fell to 172 from 465 a year earlier, while requests for information dropped to 490 from 679.

Enforcement focus sharpens

The CHRC acknowledged early friction while signalling a shift from education to enforcement:

"Over the past year, we listened carefully to employers, workers and stakeholders. We heard concerns about lengthy processing times and the complexity of new obligations. We also heard a need for more practical guidance and further clarity in our decision-making process."

It is sharpening compliance work using employer self-reporting, focusing on larger organisations, and building out the administrative monetary penalties system in force since June 2024, which lets it levy fines and make violations public — raising the reputational stakes for HR.

The Act covers about 5,000 federally regulated employers and 1.4 million employees. Maintenance reviews, due within five years of an employer's first plan, came due for most this year, making pay equity a recurring obligation.

Employer responsibilities

Here are the employer responsibilities under the federal Pay Equity Act, drawn from the CHRC's own guidance and the Act itself: