2024–2025 Services delivered: BPS — Other — Social Assistance

Component: Broader Public Sector – Other – Social Assistance

Legislation: Ministry of Community and Social Services (MCSS) Act, Pay Equity Act

Service Objectives

To ensure that proxy pay equity Transfer Payment Recipients (TPRs) continue to meet their pay equity obligations under the Pay Equity Act, until such time as they have achieved pay equity.

Service Description

The Pay Equity Act requires employers to make annual adjustments of a minimum of 1% of the previous year’s payroll toward proxy pay equity targets until pay equity has been achieved.

The government reached a mediated Memorandum of Settlement (MOS) with five unions in the spring of 2003 regarding the funding for proxy pay equity.

Although the MOS has ended, existing pay equity base funding under the MOS will continue to be made available to TPRs.

Also, the TPRs are required to continue to meet their pay equity obligations on an ongoing basis after the MOS concluded. Proxy adjustments will be included in the salary and wages portion of the TPR's fiscal/operating plan, where applicable.

People Served

The TPRs under the terms of this Service Contract will provide all eligible employees a proxy pay equity payment in compliance with the Pay Equity Act, as required by the TPRs’ proxy pay equity plan.

Method of Evaluation

Any base funding provided under the MOS that is not required to meet proxy pay equity obligations will be recovered by the Treasurer of Ontario through the Annual Reconciliation Report (ARR) process.

Reporting requirements

The following service data will be reported on at an Interim and Final stage. Please refer to your final agreement for report back due dates and targets.