Pay · HR glossary

Pay Equity

Pay equity concerns whether compensation is fair for comparable work without unjustified or unlawful differences. Reviews may examine job demands, experience, performance and other legitimate pay factors.

Example

An employer compares pay for employees doing work of similar value and investigates differences that cannot be explained by its documented pay criteria.

What to keep in mind

Pay equity is distinct from an overall gender pay gap. A valid review needs appropriate comparisons and local legal context; a simple average can hide important differences within or between roles.

Further reading

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