The complete guide to pay equity in Québec in 2027
Initial exercise, maintenance evaluation, DEMES, postings and CNESST audits: everything you need to understand about Québec's Pay Equity Act, explained simply.
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In Québec, pay equity is not optional. Since 1996, the Pay Equity Act has required employers with 10 or more employees[1][2] to make sure that jobs held mainly by women are paid at their fair value, compared with jobs held mainly by men. Nearly thirty years later, the process is still poorly understood. According to the CNESST, as of December 31, 2025, only 65.3% of the 25,310 employers that were due to have completed a second maintenance evaluation reported having done so[3].
This guide covers the whole topic: the definition of pay equity, its history and legal framework, the companies covered, the initial exercise, job evaluation, the five-year maintenance evaluation, the DEMES, CNESST audits and the mistakes to avoid. It is for information purposes only. It is neither legal advice nor professional advice, and it does not replace reading the Act or the support of specialists.
In this guide
- What is pay equity?
- Pay equity, equal pay and internal equity
- History and legal framework
- Which companies are covered?
- The initial pay equity exercise
- Job classes and predominance
- Job evaluation
- Compensation, gaps and adjustments
- Postings and transparency
- The pay equity committee
- The five-year maintenance evaluation
- The DEMES
- Audits, complaints and penalties
- Québec or federal: two regimes
- The benefits for the organization
- Common mistakes and misconceptions
- Working with a partner
- Our support
- Learn more: our articles
- Frequently asked questions
- Sources and references
What is pay equity?
Pay equity is the principle that a job held mainly by women must be paid as much as a job held mainly by men when both have equivalent value for the organization, even if their tasks are completely different. It is often described as "equal pay for work of equal value".
In Québec, this principle does not rely on goodwill alone. The purpose of the Pay Equity Act is to redress differences in compensation due to systemic gender discrimination suffered by persons who occupy positions in predominantly female job classes[1]. The key word is "systemic": the Act does not try to prove that a manager intended to underpay anyone. It starts from the observation that traditionally female jobs have historically been undervalued, often without anyone noticing, because some skills associated with these jobs were seen as "natural" rather than professional.
Think of attention to detail, listening, handling several requests at once or caring for others. For a long time, these requirements were barely recognized in pay structures, while physical strength, exposure to noise or handling heavy equipment, more often associated with male jobs, were recognized more. Pay equity compares these realities using a common, neutral grid, to check that pay truly reflects the value of the work.
A proactive law
What sets the Québec law apart is that it is proactive. Employees do not need to file a complaint for the process to happen: the employer has the obligation to check, in a structured way, whether gaps exist in its company and to correct them if needed[1][4]. This obligation applies whether or not the organization believes it is already fair. A company may well find, at the end of its work, that no adjustment is required. It must nevertheless have completed the process, documented it and posted the results.
This proactive approach works in two stages. First, the initial exercise, which establishes pay equity for the first time. Then, the maintenance evaluation, which periodically checks that the equity achieved has not been eroded by changes in the organization.
What pay equity is not
Related terms
Pay equity, equal pay and internal equity
These three terms are often used as synonyms, which creates a lot of confusion in organizations. Yet they refer to different concepts, governed by different rules.
Equal pay
Equal pay means that a woman and a man who hold the same job, or an equivalent job, must receive the same pay. This principle comes from the Charter of Human Rights and Freedoms, section 19 of which provides that every employer must, without discrimination, grant equal salary or wages to the members of its personnel who perform equivalent work at the same place[6]. Here, individuals are compared. A female technician paid less than her male colleague for the same work, without valid justification, raises an equal pay issue.
Pay equity
Pay equity goes further. It compares different jobs. The question is no longer "do we pay two people doing the same thing equally?", but rather "do we pay a mostly female job class fairly compared with a mostly male job class of equivalent value?". An administrative assistant and a warehouse clerk may, depending on the evaluation, have jobs of the same value. If the assistant position is paid less than the warehouse clerk position, the Act may require an adjustment.
Internal equity
Internal equity, sometimes called pay relativity, consists in establishing a consistent hierarchy of all jobs in the organization, regardless of gender. It is a good compensation management practice, but it is not what the Pay Equity Act is about. A company may have a very logical pay structure in terms of internal equity and still show gender-related gaps, and the reverse is also possible.
Equal pay
- Compares people
- Same job or equivalent work
- Comes from the Charter of Human Rights and Freedoms
- Usually checked case by case
It protects each individual against an unjustified pay difference.
Pay equity
- Compares job classes
- Different jobs of equivalent value
- Comes from the Pay Equity Act
- Proactive and periodic process
It corrects systemic gaps between female and male jobs.
In practice, a well-managed organization cares about all three. But only pay equity involves a formal process, mandatory postings and a statement to the CNESST.
The history of pay equity in Québec
The Pay Equity Act did not appear overnight. It is the result of a long mobilization by women's groups, unions and social actors, at a time when the pay gap between women and men remained significant despite the prohibition of discrimination in the Charter. In 1996, the National Assembly adopted it unanimously[2].
1996: the Act is adopted
The Pay Equity Act is adopted unanimously. It requires employers with 10 or more employees to follow a proactive process to correct gender-related gaps[2].
2009: maintenance becomes mandatory
A major revision adds the obligation to periodically evaluate pay equity maintenance, every five years, and clarifies companies' obligations[2][7].
2016: integration into the CNESST
On January 1, 2016, the Commission de l'équité salariale is merged with other bodies into the CNESST, which now administers the Act through its pay equity vice-presidency[8].
The 2018 Supreme Court ruling
In May 2018, the Supreme Court of Canada found that certain provisions of the Act on the maintenance evaluation were unconstitutional. Under the regime at the time, when a gap appeared between two maintenance evaluations, adjustments were only owed from the posting date, not from the moment the gap appeared. Employees could therefore experience several years of inequity without compensation. The legislature was given one year to fix the situation[7].
The 2019 reform
The Act to amend the Pay Equity Act mainly to improve the evaluation of pay equity maintenance was assented to on April 10, 2019[9]. Its main effects include:
For organizations, the most concrete consequence is financial: an undetected gap can now mean several years of retroactive adjustments, to which interest may be added[10].
Who administers the Act?
The CNESST, the Commission des normes, de l'équité, de la santé et de la sécurité du travail, is responsible for applying the Act. It informs and supports employers and employees, receives the employers' statement, conducts audits, handles complaints and can render decisions[1][10].
Note: this guide is for information purposes only. It is neither legal advice nor professional advice. Exact thresholds, deadlines and obligations depend on each organization's situation and may change. For your specific obligations, rely on the Act, the CNESST and your legal advisors.
Which companies are covered by the Pay Equity Act?
The Act applies to provincially regulated employers whose company has, on average, 10 or more employees[1][5]. The private, public and parapublic sectors are all covered. Federally regulated companies, such as banks, telecommunications companies or interprovincial transportation companies, fall instead under a separate federal regime, presented later in this guide.
How is company size determined?
Size does not mean the number of people present on a given day. The Act provides for an average: the number of employees on the payroll over a 12-month reference period is used[11]. A company that hires many seasonal or part-time workers may therefore reach the threshold sooner than it thinks, since everyone on the payroll counts, regardless of status.
Another often overlooked point: as long as a company has fewer than 10 employees, the check is repeated every year. But as soon as the threshold of 10 is reached, the size is set permanently for the purposes of the Act. A company that later drops below that threshold remains covered[4][11]. To learn more about this calculation, see our article on obligations by company size.
Obligations that vary by size
10 to 49 employees
The employer must complete the initial exercise and determine whether adjustments are required. The Act gives it more flexibility on how to proceed: the formal four-step program and the committee are optional[5].
50 to 99 employees
The employer must establish a pay equity program following the steps set out in the Act. Forming a pay equity committee remains optional in this bracket[5].
100 employees or more
The employer must establish a pay equity program, and this program must be carried out by a pay equity committee whose composition is governed by the Act[5].
The deadline for the initial exercise
The Act sets a deadline for completing the initial exercise. For a company that reaches the threshold of 10 employees, this deadline is generally four years[11]. That may seem comfortable, but it goes by quickly in a growing company, where operational priorities often take over. A company that has passed this deadline without finishing its work is in default, and the delay does not make the obligation go away.
Situations that deserve special attention
Note: this guide is for information purposes only. It is neither legal advice nor professional advice. Exact thresholds, deadlines and obligations depend on each organization's situation and may change. For your specific obligations, rely on the Act, the CNESST and your legal advisors.
The initial pay equity exercise
The initial exercise is the first process through which a company achieves pay equity. It determines whether predominantly female job classes are paid less than predominantly male job classes of equivalent value and, if so, calculates the required pay adjustments.
For companies that must establish a program, the Act describes its main components. It is not a recipe to be applied mechanically, but a framework that requires answering four main questions, in order.
What are our job classes?
Group similar jobs according to the criteria of the Act, then determine whether each class is predominantly female, predominantly male or neutral.
How do we evaluate jobs?
Choose an evaluation method and tools that measure the value of each class neutrally, without favouring the characteristics of one gender.
What are our job classes worth?
Evaluate the predominantly female and male job classes, establish their relative value and compare them on a common basis.
Are there gaps?
Estimate pay gaps, calculate the adjustments owed and set out how they will be paid, in accordance with the Act.
Behind these four questions lie many technical choices: how to define the job classes, how to handle a job held by only one person, which sub-factors to use, how to weight them, which gap estimation method to apply, how to account for flexible pay or benefits. Each of these choices can change the results significantly. That is why the Act requires the process to be free of discrimination and its foundations to be documented.
A process that must be documented
The initial exercise is not just a spreadsheet. The data used, the decisions made, the evaluation tools and the results must be demonstrable, notably during a CNESST audit or in the event of a complaint. The Act provides that this information be kept for at least six years[10][12]. An organization that cannot explain how it reached its conclusions may have to redo all or part of its work.
Why the initial exercise is more complex than it looks
On paper, the process can look simple. In reality, it often raises delicate questions. Jobs with the same title can cover very different realities. Job descriptions may be missing or outdated. The predominance of some job classes can be hard to establish. The evaluation tool may, unintentionally, give more weight to physical requirements than to interpersonal ones. Finally, calculating gaps requires a command of recognized statistical methods and a good understanding of the pay structure.
These issues explain why many companies entrust this process, in whole or in part, to compensation specialists. The goal is not only to comply: it is to get results that are defensible, understood by employees and sustainable for the organization.
Note: this guide is for information purposes only. It is neither legal advice nor professional advice. Exact thresholds, deadlines and obligations depend on each organization's situation and may change. For your specific obligations, rely on the Act, the CNESST and your legal advisors.
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Job classes and female or male predominance
The whole pay equity process rests on the concept of the job class. The comparison is not made between people, or even between job titles, but between classes that group jobs with common characteristics.
What is a job class?
Under the Act, jobs belong to the same class when they have similar duties or responsibilities, require similar qualifications and are subject to the same pay rate or pay scale[1][13]. A class can group several job titles, or include only one person. How the classes are defined is one of the most decisive choices in the whole process: a class that is too broad can hide a gap, while classes that are too narrow can needlessly complicate comparisons.
What is predominance?
Once the classes are set, each one must be identified as predominantly female, predominantly male or without predominance. The Act provides several criteria to consider[1][13], which go beyond simply counting the people in the job at the time of the process.
Predominance is therefore not just a mathematical calculation. It requires informed judgment about the organization's history and the nature of the jobs. A wrongly classified job class can skew all comparisons, for example by removing from the analysis a female class that would have been entitled to an adjustment.
Only female job classes can receive adjustments
The Act aims to correct the discrimination experienced by predominantly female job classes. Any adjustments are therefore paid to the people in those classes, including the men who belong to them. Male job classes serve as the point of comparison. Classes without predominance are generally not part of the comparison.
Related terms
Job evaluation: the four factors set out in the Act
To compare jobs as different as a billing clerk and a forklift operator, you need a common grid. That is the role of the job evaluation method. The Act does not prescribe a specific tool, but it requires the method to take four factors into account[1][13].
Qualifications
The training, experience and knowledge required to do the job, whether acquired at school, at work or otherwise.
Responsibilities
The scope of responsibilities toward people, financial, material or information resources, and the consequences of decisions.
Effort
The effort required, intellectual and mental as well as physical, including concentration, sustained attention and handling several tasks at once.
Working conditions
The context in which the work is done: physical environment, risks, psychological pressure, contact with difficult clients.
The challenge: an evaluation free of discrimination
The central requirement of the Act is that the method must evaluate jobs without gender-based discrimination. In practice, many traditional evaluation tools were designed around male, industrial or technical jobs. They value physical effort or responsibility for equipment well, but much less responsibility for the well-being of others, emotional load, precision or frequent interruptions. A tool that ignores these dimensions risks reproducing exactly the undervaluation the Act seeks to correct.
Neutrality also depends on how the tool is applied. Two evaluators may rate the same job differently based on their own perceptions. That is why gathering information on the jobs, training the people who evaluate and keeping ratings consistent are as important as choosing the tool itself.
Sources of information on jobs
To evaluate a job, you first need to know it well. Job descriptions are a starting point, but they are often incomplete or outdated. Many organizations add questionnaires, interviews with job holders and their managers, or workplace observation. The quality of this information gathering directly affects the accuracy of the results and the credibility of the process with the teams.
Note: the Act allows latitude in the choice of method, but not in its result: it must allow an evaluation free of discrimination. This guide is neither legal advice nor professional advice on choosing a tool.
Compensation, pay gaps and adjustments
Once the value of the job classes is established, the Act provides for comparing their compensation. This comparison determines whether a predominantly female job class is paid less than a predominantly male job class of equivalent value or, depending on the method, less than the trend of male job classes would predict.
A broad notion of compensation
The most common mistake is to compare base salary only. For the Act, compensation is a broader notion. It includes salary, but also flexible pay and benefits with monetary value, such as certain bonuses, pension plans, group insurance, paid leave or other benefits offered differently across job classes. A gap can exist even when pay scales look equivalent, if for example a male job class receives bonuses or benefits that a female job class of the same value does not.
Gap estimation methods
The Act recognizes different methods for estimating gaps[1]. Some compare a female job class with a specific male job class. Others compare each female job class with a curve based on all male job classes. The choice of method depends notably on the number of job classes and the structure of the organization. It has direct consequences on the amount of the adjustments, which is why it is regulated.
Pay adjustments
When a gap is found, the employer must pay adjustments to the people in the job classes concerned. The Act governs when these adjustments are owed and how they are paid. It also provides that an employer may not reduce employees' compensation to achieve pay equity. The gap is corrected upward, never by lowering the pay of the comparison job classes[1].
Note: this guide is for information purposes only. It is neither legal advice nor professional advice. Exact thresholds, deadlines and obligations depend on each organization's situation and may change. For your specific obligations, rely on the Act, the CNESST and your legal advisors.
Postings: informing employees
Transparency is an essential part of the Act. Employees have the right to know how the process was carried out and what the results are. This transparency takes the form of mandatory postings, both for the initial exercise and for each maintenance evaluation.
Two successive postings
The Act first provides for a posting of the results, in visible places that employees can easily access. During the period set by the Act, they can ask for additional information or submit their observations. Then, within 30 days after the 60th day of that posting, the employer must make a new posting, showing the changes made following the observations received or stating that no change was necessary[1][14].
Regulated content
The content of postings is not left to the employer's discretion. Depending on whether it is an initial exercise or a maintenance evaluation, the Act sets out what must be communicated, for example a summary of the process, the list of job classes, the results of the comparison, the job classes entitled to adjustments and how they will be paid. For a maintenance evaluation, the posting must also present the events that led to adjustments and their dates, or state that no adjustment is required[14]. The posting must also inform employees of their rights and of the deadlines for taking action.
Why postings matter so much
Postings have legal weight. Their date starts several deadlines, notably for complaints and for the next maintenance evaluation[14][15]. An incomplete, missing or poorly understood posting can prolong uncertainty, fuel mistrust and open the door to complaints. Conversely, a clear posting, together with careful communication, helps teams understand the process and greatly reduces the risk of challenges.
With hybrid or remote work, the question of a "visible and accessible" place also deserves thought: a document dropped in a shared folder that no one opens informs no one.
Note: this guide is for information purposes only. It is neither legal advice nor professional advice. Exact thresholds, deadlines and obligations depend on each organization's situation and may change. For your specific obligations, rely on the Act, the CNESST and your legal advisors.
The pay equity committee and employee participation
The Act gives an important place to employee participation. This participation takes different forms depending on company size, the presence of a union and the type of work being done.
The pay equity committee
In companies with 100 or more employees, the pay equity program must be carried out by a committee[5]. In smaller companies, the employer may choose to form one. The Act governs its composition:
The Act also sets rules allowing the members who represent employees to take part in the work and receive the necessary training, as well as confidentiality rules for the information consulted. Running a committee therefore requires real planning: schedule, training, decision-making, handling disagreements and documentation.
The participation process during maintenance
Since 2019, when the employer carries out the maintenance evaluation alone while employees are represented by a certified association, or when a committee had been formed for the program, the Act provides for a participation process. This process includes informing and consulting employees. It must be completed no later than 60 days before the results are posted, and the posting must report on it[9][16]. Forgetting this process when it is required is one of the most common mistakes we see.
Unionized workplaces
In unionized workplaces, the certified association plays an important role: it may designate committee members, take part in the work as provided and must be involved in the participation process when it applies. However, pay equity is not negotiated like a collective agreement clause. Adjustments resulting from the Act are owed, and a collective agreement cannot stand in their way. In addition, renewing a collective agreement that changes pay scales or bonuses may be an event to analyze during the maintenance evaluation.
Note: this guide is for information purposes only. It is neither legal advice nor professional advice. Exact thresholds, deadlines and obligations depend on each organization's situation and may change. For your specific obligations, rely on the Act, the CNESST and your legal advisors.
The pay equity maintenance evaluation
Achieving pay equity once is not enough. An organization changes: positions are created or abolished, tasks change, roles are merged, bonuses are introduced, collective agreements are renewed. Each of these changes can create a new gap. That is why the Act provides that the employer evaluate pay equity maintenance every five years[1][16].
A deadline specific to each company
The maintenance evaluation deadline is not a fixed date for all of Québec. It is specific to each company and is calculated from the posting date of the last work, whether the initial exercise or the previous maintenance evaluation[14]. In many organizations, this date is forgotten, especially when the person who led the previous work has left the company.
The events to analyze
The maintenance evaluation essentially consists in determining whether events that occurred since the last work created gaps. These events can be very varied:
Retroactive adjustments
Since the 2019 reform, adjustments resulting from a maintenance evaluation are owed from the date of the event that created the gap, not from the posting date[9][14]. In practice, an event that occurred three years before the evaluation can lead to three years of retroactive adjustments[14]. That is why it is so important to date each event correctly and not to treat the maintenance evaluation as a mere administrative formality.
Who carries out the maintenance evaluation?
The maintenance evaluation can be carried out by the employer alone, by a pay equity committee or jointly with the certified association[16], depending on the situation and the organization's choices. When the employer does it alone in certain contexts, the participation process described above applies. In all cases, the evaluation must be posted as provided by the Act, and it is only complete once the DEMES has been filed with the CNESST[14].
Note: this guide is for information purposes only. It is neither legal advice nor professional advice. Exact thresholds, deadlines and obligations depend on each organization's situation and may change. For your specific obligations, rely on the Act, the CNESST and your legal advisors.
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The DEMES: the employer pay equity statement
The DEMES, the employer pay equity statement (Déclaration de l'employeur en matière d'équité salariale), is an obligation separate from the initial exercise and the maintenance evaluation. It does not replace that work: it informs the CNESST of its progress. The information reported is used notably to target its support and audit activities[12].
Who must file it?
Generally, it covers employers registered with the Registraire des entreprises that reported a certain number of employees there the previous year, employers that have already declared themselves subject to the Act, and registered public bodies. A company with several Québec enterprise numbers (NEQ) files one DEMES per NEQ[12].
When must it be filed?
For private companies, the DEMES must generally be filed within six months after the end of the fiscal year, the same deadline as the annual updating declaration with the Registraire des entreprises. It is filed every year until the employer confirms it has completed its initial exercise, then with each maintenance evaluation. Public bodies have their own schedule[12].
What the DEMES reports
The DEMES describes the actual status of the work, not the employer's intentions. It includes notably the identification of the company, the number of employees and, where applicable, the posting dates of the results of the initial exercise and of the maintenance evaluations[12][15]. Reporting work as completed when it is not, or being unable to demonstrate it, exposes the employer to consequences during an audit.
The consequences of not filing
Failing to file the DEMES is an offence under the Pay Equity Act. The employer faces a fine of $1,000 to $45,000 and may be listed on the list of non-compliant employers published by the CNESST[12][5].
Note: this guide is for information purposes only. It is neither legal advice nor professional advice. Exact thresholds, deadlines and obligations depend on each organization's situation and may change. For your specific obligations, rely on the Act, the CNESST and your legal advisors.
CNESST audits, complaints and penalties
The CNESST has several ways to make sure the Act is respected. Companies that believe there is no oversight of pay equity may be in for a surprise.
Audits
The CNESST runs an audit program. According to its own communications, any company can be selected, regardless of size or sector[10]. It can act on its own initiative, in an approach meant to be non-adversarial, or following a complaint. The audit covers notably the completion of the initial exercise or of the maintenance evaluation, their compliance with the Act, the filing of the DEMES and the accuracy of the information reported.
When corrections are needed, the employer is notified and given time to comply. If it does not take the required measures, the file may be referred to the pay equity vice-presidency, which can render a decision. The CNESST then makes sure the measures are applied[10][5].
Complaints
Employees, a certified association or, in some cases, a group of employees can file a complaint with the CNESST, notably about the initial exercise, the maintenance evaluation or a breach of the Act. Complaints are subject to deadlines and formalities set by the Act, including the use of a prescribed form[9]. The Act also protects employees against reprisals for exercising a right under the Act.
Penalties
Beyond the amounts, an audit or a complaint takes up management time, can weaken teams' trust and hurt the employer brand. In a job market where pay transparency is gaining ground, these issues are far from minor.
Note: this guide is for information purposes only. It is neither legal advice nor professional advice. Exact thresholds, deadlines and obligations depend on each organization's situation and may change. For your specific obligations, rely on the Act, the CNESST and your legal advisors.
Québec or federal pay equity: two separate regimes
Canada has several pay equity regimes. In Québec, most companies fall under the Québec Pay Equity Act. But some companies based in Québec fall instead under federal jurisdiction.
Federally regulated employers, for example in banking, telecommunications, air transportation or interprovincial transportation, are covered by the federal Pay Equity Act, which came into force on August 31, 2021 and is administered by the Pay Equity Commissioner, who is part of the Canadian Human Rights Commission[17]. This regime rests on similar principles, notably developing a pay equity plan and reviewing it periodically, but its rules, deadlines and formalities differ.
A company with activities under both jurisdictions, or with subsidiaries in several provinces, must therefore determine which regime applies to each of its entities. Other provinces also have their own rules, such as Ontario, which has its own pay equity law[18].
Note: determining whether a company is provincially or federally regulated can raise legal questions. This guide is neither legal advice nor professional advice.
The benefits of pay equity for the organization
Pay equity is often seen as an administrative burden. Done well, however, it brings concrete benefits to the organization and its teams.
For the employer
For employees
A lever for compensation management
For many organizations, the pay equity exercise becomes the starting point for a broader reflection on compensation: reviewing pay scales, salary policy, market positioning, managing bonuses. The data collected and the job evaluation are a valuable basis for better decisions, provided they are kept up to date.
Common mistakes and misconceptions about pay equity
Over the course of our mandates, some mistakes come up often. They generally do not stem from bad faith, but from misconceptions or from underestimating how complex the process is.
"Everyone here is paid the same."
Paying two people in the same position equally is a matter of equal pay. Pay equity compares different jobs, and gaps can exist even in an organization that believes it is fair.
"We have no union, so no obligation."
The Act applies to all provincially regulated companies with 10 or more employees, unionized or not.
"We did it years ago, it is settled."
The initial exercise must be followed by a maintenance evaluation every five years. A forgotten maintenance evaluation can lead to significant retroactive adjustments.
"Only base salary counts."
Compensation also includes bonuses, flexible pay and benefits with monetary value, which can create gaps.
The most common technical mistakes
Working with a pay equity partner
Nothing in the Act requires a company to use an outside firm. Many organizations nevertheless choose to do so, in whole or in part, because the process requires specialized expertise in job evaluation and compensation, time and a neutrality that internal teams do not always have.
When support makes a difference
Criteria for choosing a partner
Compensation expertise
The process rests on job evaluation and compensation analysis. A team that masters both makes all the difference.
Knowledge of the Act and the CNESST
The partner must know the requirements of the Act, the CNESST's expectations and recent changes to the legal framework.
The ability to communicate
Accurate results must also be understood. The quality of postings and of communication to teams counts as much as the calculations.
Full service
A partner that can handle the process from start to finish, up to the DEMES, makes managers' lives much easier.
Costs and the factors that drive them
The cost of a pay equity process varies considerably from one organization to another. It depends notably on the number of employees and job classes, the quality of the information available on the jobs, whether there is a committee or a union, the nature of the work (initial exercise or maintenance evaluation), the number of events to analyze and the level of support wanted. An organization whose job descriptions are up to date and whose payroll data is well structured significantly reduces the effort required.
It is useful to compare this cost with the risk of a process done poorly or not at all: retroactive adjustments, interest, fines, management time spent on an audit or a complaint, and effects on the work climate.
Note: this guide is neither legal advice nor professional advice. Support from a human resources firm does not replace the advice of your legal advisors on interpreting the Act.
Pay equity support at Leduc HR
At Leduc HR, we take full charge of your pay equity work, so you can focus on your operations. Our compensation specialists know the Act, the CNESST's expectations and the realities of small and mid-sized businesses as well as large Québec organizations.
Initial exercise
Full support for the initial exercise, from identifying job classes to the postings, for results that are defensible and well understood.
Maintenance evaluation
Listing events, analyzing gaps, calculating retroactive adjustments and, when required, the participation process.
DEMES and follow-up
Support for filing the DEMES and keeping complete documentation, ready in case of an audit.
Audit or complaint
Support to analyze your situation, gather the documentation and put in place the corrections requested by the CNESST.
Our approach rests on three principles: technical rigour, because your results must hold up; clarity, because your teams must understand the process; and simplicity for you, because pay equity should not become a second job. Discover our pay equity service or talk with a specialist about your situation.
Your other HR needs
Pay equity is often part of a broader reflection on compensation and work organization. Our teams also support organizations with HR consulting and interim HR, outplacement and career transition.
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Learn more: our articles on pay equity
Our specialists regularly publish articles to help employers understand their obligations and avoid the most common pitfalls.
Frequently asked questions about pay equity
Clear answers to the questions executives, managers and HR teams often ask about pay equity in Québec.
What is pay equity?
It is the principle that a predominantly female job class must be paid as much as a predominantly male job class of equivalent value, even if the tasks are different. In Québec, the Pay Equity Act requires employers to check for and correct these gaps proactively.
What is the difference between pay equity and equal pay?
Equal pay compares people who do the same or equivalent work. Pay equity compares different job classes of equivalent value, to correct systemic discrimination against predominantly female jobs.
Is my company covered by the Pay Equity Act?
The Act covers provincially regulated employers whose company has an average of 10 or more employees, calculated over a 12-month reference period. Once the threshold of 10 is reached, the size is set permanently.
Do part-time and seasonal employees count?
Yes. The size calculation takes into account the employees on the payroll, regardless of status. Part-time, casual or seasonal staff can therefore push a company over the threshold sooner than expected.
What are the obligations by company size?
With 10 to 49 employees, the employer must complete the initial exercise, with some flexibility on the method. With 50 to 99, it must establish a program following the steps set out in the Act. With 100 or more, this program must be carried out by a pay equity committee.
How long do we have to complete the initial exercise?
For a company that reaches the threshold of 10 employees, the Act generally provides four years to complete the initial exercise. Missing this deadline does not make the obligation go away.
What is a predominantly female job class?
It is a job class considered female under the criteria of the Act, notably when at least 60% of the people in it are women, based on the history of the class or on the occupational stereotype associated with the job.
Which factors are used to evaluate jobs?
The evaluation method must take four factors into account: the qualifications required, the responsibilities assumed, the effort required and the conditions under which the work is performed. It must allow an evaluation free of gender-based discrimination.
Do we only compare base salary?
No. Compensation also includes flexible pay and benefits with monetary value, such as certain bonuses, pension plans or insurance. These items can create a gap even when pay scales look equivalent.
Can we lower the pay of a job class to achieve pay equity?
No. The Act prohibits reducing employees' compensation to achieve or maintain pay equity. Gaps are corrected through adjustments paid to predominantly female job classes.
What is the pay equity maintenance evaluation?
It is the process the employer must carry out every five years to check that events since the last work, such as changes in tasks, job classes or compensation, have not created new gaps.
Are maintenance adjustments retroactive?
Since the 2019 reform, adjustments resulting from a maintenance evaluation are owed from the date of the event that created the gap, not from the posting date. Interest may also be added if they are paid late.
What is the participation process?
It is a process to inform and consult employees that the Act provides in certain cases when the employer carries out the maintenance evaluation alone, notably when there is a certified association. It must be completed no later than 60 days before the results are posted.
How long do postings last?
After the first posting, employees have the period set by the Act to ask questions or submit observations. Within 30 days after the 60th day of posting, the employer must make a new posting showing the changes made, or stating that none were necessary.
What is the DEMES?
The DEMES is the employer pay equity statement. It informs the CNESST of the progress of the work. For private companies, it is generally filed within six months after the end of the fiscal year, every year until the initial exercise is completed, then with each maintenance evaluation.
What does a company risk if it does not comply with the Act?
It faces notably an audit or a complaint, retroactive adjustments and interest, fines, for example $1,000 to $45,000 for failing to file the DEMES, and being listed on the CNESST's list of non-compliant employers.
Is a federally regulated company covered by the Québec law?
No. Federally regulated companies, such as banks or telecommunications companies, fall under the federal Pay Equity Act, in force since 2021, which has its own rules and deadlines.
Does this guide replace legal advice?
No. This guide is for information purposes only and is neither legal advice nor professional advice. For your specific obligations, rely on the Act, the CNESST and your legal advisors. A specialized firm can work with them to carry out the work.
Sources and references
The figures, dates and rules cited in this guide come from the following sources. The numbers in brackets in the text refer to this list. Several official sources are available in French only. Official texts may change: in case of discrepancy, the Act and the CNESST's publications prevail.
- Pay Equity Act, CQLR, c. E-12.001, LégisQuébec
- La Loi sur l'équité salariale : un apport indéniable pour contrer la discrimination salariale, 2019 report of the Minister (in French), Ministère du Travail, de l'Emploi et de la Solidarité sociale
- L'équité salariale en chiffres, data as of December 31, 2025 (in French), CNESST
- Droits et obligations des employeurs en équité salariale (in French), CNESST
- Aide-mémoire des obligations de l'employeur selon le nombre de travailleuses et travailleurs (in French), CNESST
- Charter of Human Rights and Freedoms, CQLR, c. C-12, s. 19, LégisQuébec
- Quebec (Attorney General) v. Alliance du personnel professionnel et technique de la santé et des services sociaux, 2018 SCC 17 (case in brief), Supreme Court of Canada
- Regroupement de la CNT, de la CES et de la CSST (January 5, 2016) (in French), CNESST, press release
- Act to amend the Pay Equity Act mainly to improve the evaluation of pay equity maintenance (2019, c. 4) (in French), Gazette officielle du Québec, May 1, 2019
- CNESST pay equity audit: what to expect, Leduc HR, based on the CNESST
- Pay equity obligations by company size, Leduc HR, based on the Act and the CNESST
- The DEMES: Quebec's employer pay equity statement, Leduc HR, based on the CNESST
- Programme d'équité salariale du secteur parapublic (criteria of section 55 of the Act) (in French), Secrétariat du Conseil du trésor du Québec
- Pay equity maintenance: common mistakes, Leduc HR, based on the Act and the CNESST
- Frequently asked questions (in French), CNESST
- Évaluer le maintien de l'équité salariale (in French), CNESST
- Overview of the Pay Equity Act (federal), Government of Canada
- Pay Equity Act, R.S.O. 1990, c. P.7, Government of Ontario
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