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Module 13: Adjusting Compensation



Welcome to the e-learning program of Ontario's Pay Equity Commission.

This module: Adjusting Compensation

In this module, you will learn about how compensation is compared and adjusted for the purpose of pay equity.

After you have found comparable job classes, you must look at how they are compensated in terms of salary and benefits.

If a male comparator job class is paid more than a female job class of equal or comparable value, pay adjustments must be made to the female job class.

Click the Adjustment button to see the adjustment required here.

The difference in the job rate between the female job class and its male comparator is the amount of pay equity adjustment.

In this example, the female job class will receive an adjustment of $0.85 per hour. This will bring the female job rate up to the level of the male job rate.

If you have several employees who are earning at different pay levels within a job class, each employee would receive the same pay equity adjustment.

The rate you must use when comparing the compensation of two job classes is the job rate.

Where pay scales or ranges are used, the highest rate is the job rate.

If you don't have a formal pay system, the job rate is the highest pay of an employee in the job class.

The following two slides contain examples of pay equity adjustments.

In this example of a seniority system, the job rate for the female job class is $13.75 an hour. This is the maximum rate in the range.

The male job rate is $15.00 an hour, also the maximum of the range.

The pay equity adjustment is the difference in the two job rates - $1.25 an hour.

If the benefits available to employees in comparable job classes are different, then the value of this difference will have to be calculated and job rates adjusted accordingly.

For more information, click on the link to access the section on pay equity adjustments in the Guide to Interpreting the Pay Equity Act.

Now that you've determined which female job classes need a pay equity adjustment, you must begin paying female job classes equally.

You will need to determine if pay equity adjustments are owed retroactively. Pay equity adjustments are owed from the date your organization should have achieved pay equity. Refer back to Line 3 of your worksheet for this date which was determined in Module 2 – Introduction to Pay Equity.

In the next module, you will learn about ways of communicating pay equity results to your employees.

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