Indigenous women in Canada continue to face structural barriers to workplace retirement plans and benefits programs, driven by employment instability, eligibility rules and traditional benefits design that often don’t reflect Indigenous realities, according to leaders at Aboriginal Community Career Employment Services.
National labour data highlights the disparity. A Statistics Canada report found the employment rate among Indigenous adults is about 61.2 per cent compared to 74.1 per cent for non-Indigenous Canadians, and these gaps can impact access to benefits, notes Lynn White, chief executive officer at Access.
Read: Feds launching web tool to track representation, pay disparity for women, minorities
“Differences show up in job quality and stability. Employment rates for Indigenous women are lower than Indigenous men by about eight per cent — roughly 64 per cent compared to 72.8 per cent.”
Indigenous women are also more likely to work part time due to caregiving responsibilities and are more frequently employed in temporary or shorter-tenure roles, she says, adding these patterns can significantly affect retirement outcomes.
Income instability and interrupted careers can weaken long-term savings because workers may have fewer years of pensionable service and lower lifetime contributions. Some may also experience gaps in Canada Pension Plan contributions or withdraw smaller savings balances early to manage financial emergencies.
Pay disparities can further limit retirement savings. Statistics Canada’s research found Indigenous women face an 18 per cent gender wage gap among full-time workers, reducing their ability to contribute consistently to retirement plans.
Access to employer-sponsored benefits is also closely tied to job type and workplace size, says White, noting Indigenous women are often less likely to receive pensions or extended health and dental coverage because many plans are tied to full-time employment and are less common in smaller organizations.
Traditional benefits design can also create barriers. Eligibility thresholds, waiting periods and narrow definitions of family or caregiving responsibilities may not reflect the realities of Indigenous communities. Standard employee assistance programs can also fall short if they lack culturally safe or trauma-informed supports.
Read: Majority of Indigenous IT workers have experienced workplace discrimination: survey
Wendy Demosten, human resources manager at Access, says the organization provides equal benefits access for employees. “We have equal benefits for both our men and women.”
Participation in the organization’s retirement plan is mandatory, helping ensure employees consistently build savings for the future. Access also works with an Indigenous benefits provider that incorporates culturally informed services, including trauma-informed mental-health supports. White believes employers across Canada can make progress by rethinking how benefits programs are structured.
Culturally-responsive total rewards strategies could include pro-rated benefits for part-time workers, reduced waiting periods and pension contributions that don’t depend entirely on full-time employment. Employers can also strengthen culturally safe wellness supports by offering employee assistance programs with Indigenous practitioners and trauma-informed care.
She adds HR and benefits leaders should focus on measuring access gaps and removing barriers built into plan design. “Measure access gaps, fix exclusion points and add pension pathways. Co-design with Indigenous women in mind.”