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Fiscal Analysis of Federal Pay Equity

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Published on November 4, 2020 PDF

To assist parliamentarians in their role to scrutinize the raising and spending of public monies, this report provides an overview of the spending measures associated with the Government of Canada’s proactive pay equity regime within the federal public and private sectors.


Communications

News Release

{"id":7,"created_at":"2020-10-30T11:37:14-04:00","updated_at":"2021-02-25T15:07:04-05:00","slug":"COM-2021-007--pbo-estimates-ongoing-annual-cost-of-federal-pay-equity-act-coul--le-dpb-estime-que-le-cout-annuel-permanent-de-la-loi-federale-su","title_en":"PBO estimates ongoing annual cost of Federal Pay Equity Act could hit $621 million by 2023-24","title_fr":"Le DPB estime que le co\u00fbt annuel permanent de la loi f\u00e9d\u00e9rale sur l\u2019\u00e9quit\u00e9 salariale pourrait atteindre 621 millions de dollars d\u2019ici 2023 2024","body_en":"The Parliamentary Budget Officer (PBO) today released a new report which provides an analysis of the fiscal impact of increased federal public service employee salaries and benefits resulting from the enactment of the federal Pay Equity Act (the Act).\n\nPay Equity refers to situations where employees perform work of equal value; where the comparable value is based on the comparable level of skill, effort, responsibility, and working conditions. Pay Equity legislation ensures that men and women performing different jobs of comparable value are compensated equally.\n\nIn his report, Fiscal Analysis of Federal Pay Equity, the PBO estimates the financial cost of implementing the Act, which covers approximately 1.3 million employees: some 390,000 in the public sector and 900,000 in the private sector. The federal government has not yet released its own estimate of how much more money is expected to be spent to comply with the legislation.\n\n\u201cOnce the Act is fully in force starting in 2023-24, we estimate the federal government\u0027s ongoing annual cost could increase to $621 million,\u0022 said Yves Giroux, PBO. \u0022This amount includes additional contributions to pension and other employee benefit plans, which is estimated at $144 million\u201d.\n\nThe PBO\u2019s analysis captures approximately 30% of the federally regulated workforce. It does not include Crown Corporations, the Prime Minster\u2019s and ministers\u2019 offices, parliamentary institutions, nor the private sector. Therefore, the impact on all federally regulated workplaces will likely be substantially greater.","body_fr":"Le directeur parlementaire du budget (DPB) a publi\u00e9 aujourd\u2019hui un nouveau rapport pr\u00e9sentant une analyse des r\u00e9percussions financi\u00e8res de l\u2019augmentation de la r\u00e9mun\u00e9ration des employ\u00e9s de la fonction publique f\u00e9d\u00e9rale r\u00e9sultant de la promulgation de la Loi sur l\u2019\u00e9quit\u00e9 salariale (la Loi).\n\nL\u2019\u00e9quit\u00e9 salariale concerne les situations o\u00f9 les employ\u00e9s font un travail de valeur \u00e9gale et o\u00f9 la valeur comparable est bas\u00e9e sur le niveau comparable de comp\u00e9tences, d\u2019efforts, de responsabilit\u00e9s et de conditions de travail. L\u2019\u00e9quit\u00e9 salariale garantit une r\u00e9mun\u00e9ration \u00e9gale aux hommes et aux femmes qui font un travail diff\u00e9rent, mais de valeur comparable.\n\nDans son rapport intitul\u00e9 Analyse financi\u00e8re du r\u00e9gime f\u00e9d\u00e9ral d\u2019\u00e9quit\u00e9 salariale, le DPB fait une estimation du co\u00fbt financier de mise en \u0153uvre de la Loi, qui couvre environ 1,3 million d\u2019employ\u00e9s : autour de 390 000 dans le secteur public et de 900 000 dans le secteur priv\u00e9. Le gouvernement f\u00e9d\u00e9ral n\u2019a pas encore publi\u00e9 sa propre estimation des d\u00e9penses suppl\u00e9mentaires \u00e0 pr\u00e9voir pour se conformer \u00e0 la Loi.\n\n\u00ab Nous estimons que lorsque la Loi sera pleinement en vigueur, \u00e0 compter de 2023 2024, le co\u00fbt annuel permanent que devra assumer le gouvernement f\u00e9d\u00e9ral pourrait atteindre 621 millions de dollars \u00bb, a d\u00e9clar\u00e9 Yves Giroux, DPB. \u00ab Ce montant comprend les cotisations suppl\u00e9mentaires aux r\u00e9gimes de retraite et aux autres r\u00e9gimes d\u2019avantages sociaux des employ\u00e9s, qui sont estim\u00e9es \u00e0 144 millions de dollars. \u00bb\n\nL\u2019analyse du DPB porte sur environ 30 % de la main-d\u2019\u0153uvre sous r\u00e9glementation f\u00e9d\u00e9rale. Elle exclut les soci\u00e9t\u00e9s d\u2019\u00c9tat, les cabinets du premier ministre et des ministres, les institutions parlementaires et le secteur priv\u00e9. De ce fait, l\u2019incidence sur l\u2019ensemble des milieux de travail sous r\u00e9glementation f\u00e9d\u00e9rale sera probablement beaucoup plus importante.","release_date":"2020-11-04T09:00:00-05:00","is_published":"2021-02-25T15:07:04-05:00","internal_id":"COM-2021-007","permalinks":{"en":{"website":"https:\/\/www.pbo-dpb.ca\/en\/blog\/news-releases--communiques-de-presse\/COM-2021-007--pbo-estimates-ongoing-annual-cost-of-federal-pay-equity-act-coul--le-dpb-estime-que-le-cout-annuel-permanent-de-la-loi-federale-su"},"fr":{"website":"https:\/\/www.pbo-dpb.ca\/fr\/blog\/news-releases--communiques-de-presse\/COM-2021-007--pbo-estimates-ongoing-annual-cost-of-federal-pay-equity-act-coul--le-dpb-estime-que-le-cout-annuel-permanent-de-la-loi-federale-su"}},"pivot":{"publication_id":52,"news_release_id":7}}