Changes to New Zealand's equal pay act are being signalled as a major step forward

The amendments come into effect today, with the aim of giving employees in female dominated occupations a clearer pathway to pay equity.

The new law establishes a clear process for unions and individuals to raise a pay equity claim directly with an employer.

Council of Trade Unions President Richard Wagstaff says the new law will make it simpler to pursue an equal pay claim.

He says it provides more unions with the opportunity to be able to negotiate a settlement between the employee and employer if there is a pay gap.