Glossary Term: Pay Equity


Pay equity is equal pay for work of equal or comparable value. If two different jobs contribute equal value to the employer’s operations, then the employees in those positions should receive equal pay. This requires comparing jobs historically done by women with different jobs historically done by men.

What is the difference between pay equity and equal pay?

Pay equity compares the value and pay of different jobs, such as nurse and electrician. ​Equal pay compares the pay of similar jobs.

What is the goal of pay equity?

Pay equity aims to close the part of the wage gap that exists due to systemic gender discrimination in employer pay practices.

Is pay equity a problem?

Beyond the legal ramifications of pay discrimination, pay equity issues also make it more difficult to recruit and retain employees. Consumers are increasingly making buying decisions with companies that align with their values, and organizations with pay equity problems can lose valued customers.

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