Canada introduces new equal wage requirement for federally regulated employers

Canada is expected to implement a new equal pay for equal work requirement for federally regulated employers in 2026. The effective date of the change has yet to be announced. Most employers in Canada are provincially regulated, and this federal legislative change does not apply to provincially regulated workplaces.

Background

The Budget Implementation Act, 2018, No. 2, which received royal assent on 13 December 2018, amended the Canada Labour Code (the “Code”) to introduce equal pay for equal work provisions, which have not yet been proclaimed in force. The federal government has indicated that the equal wage provisions are expected to come into force in 2026, following the finalization of draft implementing regulations (opens a new window), which were published for consultation in early 2025.

The changes apply only to specific industries under the federal government’s oversight (i.e., federally regulated workplaces) who are subject to Part III of the Code. Examples of such federally regulated industries are interprovincial or international transportation by land and sea, airports and airlines, telecommunications and broadcasting, banks, and First Nations band councils.

Key details

The equal pay for equal work provisions of the Code have not yet been proclaimed in force. When in force, they will:

• Prohibit employers from paying different rates of wages based on employment status (e.g., full-time, part-time, permanent, temporary, casual, or seasonal) when employees perform substantially the same kind of work under similar working conditions.

• Allow an employee to request a wage review if they believe their wage rate does not comply with the Code. Employers must conduct the review and provide a written response within 90 days, either confirming a corrective wage adjustment or explaining how the current wage is compliant.

Employer action: PREPARE TO ACT

Employers, especially those using temporary, part‑time, or seasonal labor, should prepare for the equal wage requirements to come into force in 2026 and review their pay structures accordingly.

Written in collaboration with:

Jessica Gobran

National Practice Leader, Disability Management (DM) Consulting

BFL CANADA Benefits (Lockton Global Partner)

jgobran@bflcanada.ca (opens a new window)

Further Information

Canada Labour Code | Department of Justice Canada (opens a new window)

Canada Labour Standards Regulations | Department of Justice Canada (opens a new window)

Budget Implementation Act, 2018, No. 2 | Department of Justice Canada (opens a new window)