Canadian workplace gender pay gap may be showing signs of closing

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30

June 2023

A new survey by ADP Canada, conducted with Maru Public Opinion, shows that the gender pay gap in Canada may be slowly closing, but working Canadians who self-identify as women still report, on average, earning 21 percent less than workers who self-identify as men, a 3 percentage points decrease from 2021. The survey collected self-reported gross salaries for 2022 from both part- and full-time employees and revealed the average salary reported by men was $72,743 versus $57,725 reported by women, representing a yearly deficit of over $15,000. Further, Canadian men bear higher compensation across salary levels with 33 percent declaring earnings of over $80,000 in 2022, compared to only 18 percent of women.

When respondents were asked about the impact of pay discrepancies, nearly half (47%) of Canadian workers cite they would consider leaving their current employer if they found out a colleague of equal standing, in terms of seniority and tenure, but different gender, received greater compensation than them. This sentiment was most apparent with women, as half indicated they would likely leave their employer in these circumstances, compared to 44 percent of men Canadian workers. The survey also revealed contrasts across generations, as the next generation of workers may be even more impacted by a ‘gender pay gap turnover.’ Almost two-thirds (63%) of Gen Zs, followed by 53 percent of Millennials pointed they would consider leaving their role in case of salary inequalities across genders, against only 37 percent of Gen X and 32 percent of Boomers. While the pay gap persists, the good news is that nearly three-quarters (71%) of working Canadians believe pay equity is a priority for their organization, including 72 percent of women and 70 percent of men. For further information about the survey, click here.

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