Theory of Change for Achieving Equal Pay for Work of Equal Value

TORONTO, Sept. 18, 2025 /CNW/ – Today marks International Equal Pay Day and the Ontario Pay Equity Office (PEO) is publishing a new report, Theory of Change for Achieving Equal Pay for Work of Equal Value, highlighting global best-practices to closing the gender wage gap. Adding to its rich collection of research, this publication will be shared as a contribution to the Equal Pay International Coalition (EPIC). In a world where the gender pay gap averages 20% globally, the publication is a roadmap for stakeholders at every level, including employers, unions, governments, civil society organizations, international agencies, and academia, to support achieving equal pay for work of equal value.

The gender pay gap refers to differences between men’s and women’s hourly, weekly, monthly or yearly earnings. In Ontario the gender pay gap was last measured at 13%. The global gender pay gap is significant and is one of the clearest displays of gender inequality in the workplace. The International Labour Organization found that, on average, women earn about 20% less than men.

“We published this Theory of Change because we know that through targeted, collaborative, and comprehensive approaches to address the drivers of the gender pay gap, governments and key stakeholders can drive systemic change where equal pay is the norm, not the exception,” explains Kadie Philp, Commissioner and CAO of Ontario’s Pay Equity Office.

Reflecting the publication’s value, the EPIC Secretariat remarked: “The Equal Pay International Coalition Secretariat is delighted to welcome the Theory of Change prepared by the Ontario Pay Equity Office (PEO), Canada, for use by EPIC members and all partners committed to advancing pay equity. We extend our deepest thanks to PEO and to the EPIC members whose contributions shaped this substantive, field ready tool, which will support concrete and measurable progress toward equal pay for work of equal value.”

Closing the gender pay gap and achieving equal pay for work of equal value is crucial to promote fairness, uphold human rights, and nurture economic growth. Economically, gender parity in the workforce could add up to US$7 trillion to the global economy, raise GDP per capita globally by 20%, and increase global GDP by US$2 trillion. Closing the gender pay gap also reduces poverty, boosts women’s workforce participation, and fosters inclusive growth.

The Theory of Change is being launched at the Equal Pay International Coalition Technical Meeting where global leaders will converge to learn from international best-practices in policies and programs to close gender pay gaps.

Download the publication

To learn more about the Pay Equity Office:

• Visit our website: Pay Equity Ontario
• Follow us on social media: LinkedIn, YouTube, X 

Quick Facts:

• The gender pay gap is caused by multiple deep-rooted drivers; the publication focuses on seven such drivers: undervaluing women’s work; lower level of women’s participation in the labour market; educational and occupational segregation; discrimination; caregiving career impact; lack of pay transparency; and inadequate level of unionization and collective bargaining.
• Several innovative solutions-in-action across the globe showcase how change is possible:
  • Gender-neutral job evaluation – Implement fair job classification/evaluation systems to ensure pay reflects job value, skill, effort, responsibility.
  • Boost participation – Expand affordable childcare, offer tax incentives, encourage women’s employment.
  • STEM pipeline – Targeted education and skills programs for girls and women to increase representation in high-paying tech fields.
  • Family-friendly workplace policies – Expand paid parental leave and flexible working arrangements to support women’s career continuity.
  • Transparency & accountability – Mandate pay reporting, pay audits, action plans, and penalties for non-compliance to identify and reduce pay gaps.
  • Union action – Inclusive collective bargaining to standardize pay scales, narrow the gender pay gap, and improve workplace conditions for women.

SOURCE Pay Equity Office