Quick Answer: What Is An Equal Pay Audit?

What do you mean by equal pay for equal work?

Equal pay for equal work is the concept of labour rights that individuals in the same workplace be given equal pay.

It is most commonly used in the context of sexual discrimination, in relation to the gender pay gap..

Can I be paid less for doing the same job?

Key facts. People doing the same job or work of equal value should get the same or equal pay; but in many cases they don’t, even though though the law says they should. … You are entitled to the same pay as anyone doing the same or broadly similar job, or a job of equal value, regardless of gender.

Is there a pay gap between genders?

The gender pay gap in the United States is the ratio of female-to-male median or average (depending on the source) yearly earnings among full-time, year-round workers. The average woman’s unadjusted annual salary has been cited as 81% to 82% of that of the average man’s.

How do you conduct a pay audit?

Here is a seven-step plan for conducting a successful pay audit.Plan Ahead: Set Goals, Get Buy-in and Put the Right Team in Place. … Examine Your Pay Practices and Policies. … Collect the Relevant Data. … Determine Which Employees Perform “Comparable” Work. … Analyze the Data. … Assess Whether Differences are Justified Under the Law.More items…•

How is equal pay calculated?

It’s calculated by adding up the wages of all male and female employees and dividing it by the number of employees. The pay gap is the difference between the mean figures for men and women, which is reported as a percentage.

How do you implement equal pay for work of equal value?

How to implement equal payProduce an equal pay policy.Create clear and transparent job descriptions and titles.Follow a job evaluation scheme.Look at your grading structures.Consider more action for a fair pay system.

Why is it important to correct pay equity gaps?

Why should pay equity matter to employers? “By ensuring employees are paid equitably, employers can increase efficiency, creativity and productivity by helping to attract the best employees, reduce turnover and increase commitment to the organization,” says Cheryl Pinarchick, an attorney with Fisher Phillips in Boston.

Is equal pay for equal work a fundamental right?

Our Constitution does not explicitly states the right to receive equal pay for equal work as a fundamental or constitutional right of the workers or the employees of any organization.

What is work of equal value?

In 1943, in response to rising pressure from women’s organisations ,the government established a Women’s Employment Board securing women war workers around 75 percent of the male wage. … This introduced ‘equal pay for work of equal value’. The ruling officially set the female wage at 85% of the male wage.

Who is covered under the Equal Pay Act?

By law, men and women must get equal pay for doing ‘equal work’ (work that equal pay law classes as the same, similar, equivalent or of equal value). This means someone must not get less pay compared to someone who is both: the opposite sex. doing equal work for the same employer.

What is a pay equity audit?

A pay equity audit, done right, allows employers to minimize risk by identifying and remediating pay deficiencies, providing greater standing to defend against and win claims of pay discrimination. A pay equity audit identifies pay differences between employees that cannot be explained due to job-related factors.

What is the difference between equal pay and pay equity?

Key Differences Pay equity compares the value and pay of different jobs, such as nurse and electrician. Equal pay compares the pay of similar jobs. ​Only people (both men and women) in jobs done traditionally by women can complain that their work is undervalued.

How far back can an equal pay claim go?

six yearsIf a worker successfully brings an Equal Pay claim they can recover: Back pay, i.e. the difference between what the worker received and what their comparator received. The maximum period for which back pay can be awarded is six years, but in some cases awards of back pay can go back further.

What is the median pay gap?

The median pay gap is the difference between the midpoints in the ranges of hourly earnings of men and women. It takes all salaries in the sample, lines them up in order from lowest to highest, and picks the middle salary. … The mean gender pay gap is the difference between the average hourly earnings of men and women.

How can a company’s HRM process take steps to close the pay gap?

Whether deliberate or unconscious, bias is holding women back in the workplace….Conduct a pay audit. … Ensure that hiring and promotions are fair. … Make sure women have equal opportunities for advancement. … Make it a norm for women to negotiate.

How is pay equity calculated?

To successfully perform a pay audit or pay equity analysis within your organization, follow these seven steps:Plan early and plan well. … Research your pay policies. … Gather the data. … Compare the work of employees with similar positions. … Analyze the data. … Assess whether pay differences are legally justified.More items…

Why is there a pay gap?

Differences in pay are caused by occupational segregation (with more men in higher paid industries and women in lower paid industries), vertical segregation (fewer women in senior, and hence better paying positions), ineffective equal pay legislation, women’s overall paid working hours, and barriers to entry into the …

How do you conduct a pay review?

There are a number of broad steps to conducting a pay review in a small business as follows:Decide on a budget and on objectives. … Get the information you need. … Involve line managers. … Moderation and approval. … Implementation. … Review.