Pay Equity
Ensuring employees are paid fairly regardless of gender, ethnicity, or protected characteristics.
Also: equal pay · pay fairness
Definition
Pay equity refers to the principle and practice of ensuring that employees are compensated fairly and without discrimination based on gender, ethnicity, age, disability, or other protected characteristics. A pay equity audit involves statistically analyzing compensation data—controlling for legitimate factors like role, level, and experience—to identify any unexplained gaps attributable to protected characteristics. Closing pay equity gaps is both a legal compliance requirement and an important element of an inclusive culture.
Example
“The annual pay equity audit revealed a statistically significant gap of 4.2% in base salary between men and women at the senior manager level, which was corrected in the next salary review cycle.”
Synonyms
- equal pay
- pay fairness
- compensation equity
- wage equity
Antonyms / Opposites
- pay discrimination
- pay disparity