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Human Resource Management – Pay Equity Act

Pay Equity Act

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Pay equity legislation exists federally and in several provincial jurisdictions, and it attempts to address the wage gap between female and male dominated jobs to ensure that jobs of equal value within the organization to receive similar rates of pay. Organizations use job evaluation to establish the worth of an organization’s jobs in terms of such criteria as their difficulty and their importance to the organization. The employer then compares the evaluation points awarded to each job with the pay for each job. If jobs have the same number of evaluation points, they should be paid equally. If they are not, pay of the lower paid job is raised to meet the comparable worth of the male- dominated job.

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