Compensation · Glossary

Pay Equity

Fair pay for substantially similar work, controlled for legitimate factors.

Pay equity analysis compares pay across protected groups, controlling for role, level, location, and tenure. It's increasingly mandated — the EU Pay Transparency Directive (effective 2026) requires reporting and remediation for gaps above 5%.

The right cadence is twice yearly: once at the comp cycle, once mid-year. Findings should drive corrective adjustments, not just reports.

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