B.C. pay transparency law narrows wage gap: report

British Columbia’s pay transparency law is beginning to deliver measurable results, with the province reporting a notable reduction in the gender pay gap since the legislation came into force in 2023.

According to the B.C. government’s Pay Transparency Annual Report, the gap narrowed from 18.4% in 2022 to 14.5% in 2025.

“Pay transparency in B.C. is starting to make a measurable difference,” the report states, pointing to improved awareness among employers and workers. 

The B.C. government says transparency requirements are also changing hiring practices, with more job postings including salary ranges and greater openness in workplace conversations about pay. 

At the same time, officials caution that progress remains uneven and that the province still ranks among those with the widest gender pay gaps in Canada. 

Nearly three-quarters (73%) of Canadian workers say they would be more likely to apply for a job that includes the pay range in the posting, according to a previous Indeed report.

Significant inequities remain across groups, sectors

Despite overall improvement, the report highlights persistent disparities affecting multiple groups in the workforce.

In 2025, women earned “85 cents on average for every dollar men earned,” underscoring that a substantial gap remains.

Inequities are more pronounced for certain populations. Racialized women earned 26% less than non-racialized men, while recent newcomer women earned 31% less than Canadian-born men. Indigenous women faced a 17% gap compared to non-Indigenous men. 

The B.C. government emphasizes that the issue is not limited to education or qualifications. “Even when women and gender-diverse people have higher levels of education or enter higher-paying fields, pay disparities often endure,” the report says.

It adds that pay inequity carries broader consequences: “When women and gender-diverse people are paid less… the province forgoes potential tax revenue and economic output.” 

Performance varies widely across key industries, particularly those expected to drive economic growth in the decade ahead.

In professional, scientific and technical services, the gender pay gap stood at 18% in 2025, with women still underrepresented in this high-paying sector. 

Retail trade recorded a smaller gap of 9%, but disparities persist in management roles, where women—especially racialized women—are underrepresented and face larger wage differences. 

In construction, the gap improved to 10%, yet women accounted for only 16% of the workforce, reflecting ongoing barriers to entry and advancement.

The B.C. government says progress in these sectors will be critical, noting they employ a large share of workers and are expected to generate significant job growth.

Women in Canadian tech leadership are earning substantially less than men, a disparity that experts say puts pressure on HR leaders to re‑examine how senior talent is paid, promoted and rewarded.

Compliance expands as reporting requirements grow

The reach of the Pay Transparency Act is set to expand sharply, placing more employers under regulatory requirements. As of November 2025, about 700 employers were required to file pay transparency reports, with 64% meeting the requirement, according to the B.C. government.

By late 2026, that obligation will extend to approximately 8,500 employers with 50 or more employees.

Meanwhile, pay disclosure is becoming standard practice in recruitment. The province reports that 81% of job postings in B.C. included pay information in March 2026, compared to 56% nationally.

The B.C. government says the shift reflects both regulatory pressure and growing expectations from job seekers for upfront compensation transparency.

Employers urged to take further action

The province is calling on employers to move beyond compliance and take a more active role in addressing pay inequities.

The report states that closing the pay gap will require “continued collective action from employers, workers, and government.”

Among its recommendations, the B.C. government encourages employers to monitor pay by gender, improve data collection, and review compensation structures such as overtime and bonus pay.

It also positions pay transparency as a long-term economic strategy, stating that fair compensation practices help employers attract talent and improve productivity. 

“Pay transparency is a long-term investment in B.C.’s economic well-being,” the report concludes.

Why is narrowing the gender pay gap important for employers?

Narrowing the gender pay gap isn't only an equity question for Canadian employers — it carries real business consequences. Below are five reasons: