Raises from pay equity law to land three years after rules take effect, watchdog says


OTTAWA — Canada’s pay equity commissioner says the first raises under soon-to-be-enacted legislation should happen by 2024.

Commissioner Karen Jensen also says that it may take several more years before the full impact of closing the gender pay gap is felt in federally regulated workplaces.

The Liberals passed pay equity legislation in 2018 and wrapped consultations on draft regulations last month that would require companies such as banks and airlines to put plans in place to meet the new rules.

Companies would have three years to craft those plans along with their unions.

The Liberals say the rules should be in place later this year and Jensen says that means pay increases for those who have been underpaid would start in 2024.

Increases can be phased in over three years for large employers, or spread out longer to five years for small- and medium-sized businesses.