Milestone 3: Increase employee compensation

How are the increases in compensation determined and how are they paid out? 

The third milestone of the pay equity process is to provide the required increases in compensation. 

If employees are entitled to increases as a result of the analysis performed for the pay equity plan, employers must post a notice of the increases and the date on which those increases are payable before making them.  

Increases in compensation are payable in full the day after the final version of the pay equity plan is posted.  

If the total amount of the increases in compensation that are owed to all employees is greater than 1 percent of the employer’s annual payroll an employer may phase in the increases over a number of years.  

Each annual increase that an employer pays must be equal to, or greater than, 1 percent of the employer’s total payroll.