Unexplained Pay Gap
The portion of the gender pay gap that cannot be justified by objective, non-discriminatory factors.
Definition
The unexplained pay gap represents the residual difference in average remuneration between men and women after accounting for legitimate, objective, and non-discriminatory factors such as education, experience, job function, performance, and tenure. Under the Swiss Ordinance on the Verification of Equal Pay Analysis, employers are required to identify and address this unexplained portion. The legislation sets a tolerance threshold, typically 5%, for this gap. If an employer's analysis reveals an unexplained pay gap exceeding this threshold, it indicates potential gender-based discrimination that must be rectified, triggering further obligations for repeated analyses and corrective actions.