Pay Audit
A comprehensive analysis of a company's remuneration system to verify compliance with equal pay principles.
Definitions (3)
An obligatory analysis for companies with 50 or more employees, conducted as part of their equality plan. Its purpose is to obtain the necessary information to verify if the company's remuneration system, in a transversal and complete manner, complies with the effective application of the principle of equality between women and men in terms of remuneration. It includes a job valuation with a gender perspective and aims to identify and correct discriminatory practices.
A pay audit is a mandatory component of the equality plan for companies with 50 or more employees. It involves a detailed, gender-neutral job evaluation system and a thorough analysis of the company's remuneration system to ensure it respects the principle of equal pay for work of equal value. The audit aims to identify any unjustified pay gaps and to propose corrective measures to eliminate gender-based pay discrimination, ensuring objective and fair compensation practices.
A systematic and objective review conducted by an employer to identify and address potential gender-based pay disparities within their organization. This process typically involves analyzing pay data across different job roles, levels, and departments, evaluating job roles using objective criteria, and identifying the root causes of any observed pay gaps.