Pay Structure

A 'pay structure' refers to the systematic organization and determination of remuneration within an organization, encompassing job classification systems, pay scales, salary bands, and criteria used for setting individual pay levels. This Act requires employers to establish and make accessible objective and gender-neutral pay structures that facilitate the assessment of work of equal value and ensure fair and transparent remuneration practices. The structure should clearly delineate how factors such as skills, effort, responsibility, and working conditions influence pay, thereby reducing the potential for arbitrary or discriminatory pay decisions.

A pay structure, as required by the Act, is an organizational framework that outlines the objective and gender-neutral criteria used to determine job value, establish pay levels, and manage salary progression and career advancement. These structures must be based on factors such as skills, effort, responsibilities, and working conditions. Their purpose is to ensure fairness, transparency, and consistency in compensation decisions, enabling employees to understand how their pay is set and how they can advance, while also allowing employers to identify and rectify potential biases.