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Building a pay equity plan

A pay equity plan is based on an understanding of

  • pay equity i.e. equal remuneration for work of equal and comparable value
  • the benefits of pay equity
  • the causes of gender pay gaps, being historical, structural or the result of gender bias
  • the type of pay gap: is it a level by level gap, an organisation wide gap or both?

A pay equity plan will be based on a pay roll analysis (link to previous section: What can business do to close the gap)


1. Identify pay gap and type of gap

Different numbers in the pay roll analysis will indicate a gender pay gap and whether it is level by level or organisational or both

2. Interpret results

Once a gap is identified on the spreadsheet, the results need to be investigated and analysed.

An explanation for the gap is needed, the reasons for the gap understood
A justification for the gap is required: is the difference based on outcomes, pay for performance and how is that measured?


3. Develop an action plan specific to your business to address the gaps identified above

In an action plan, the business sets

  • a target
  • a date for achievement
  • a process of monitoring the decline in the gap and to ensure no new gaps appear

4. Actions organisations can take

Level by level gap

  • Review remuneration policy
    1. Make sure gender neutral job evaluation processes are in place
    2. Make sure comparable roles start on same salaries
  • Train staff and management in understanding, detecting and reducing gender bias
  • Make sure performance appraisal systems are standardised and monitored

Organisation gap

  1. Set targets to increase numbers of women in higher paid management and operational roles
  2. Support those targets with programs
  3. Invite applications for jobs from women and men, both inside and outside the organisation
  4. Address barriers to participation e.g. access to flexible work arrangements


View WGEA website resources

View WGEA video at

In May 2014 WGEA is holding two workshops in Sydney and two workshops in Melbourne to assist organisations in managing and improving the equal remuneration for women and men in the workplace. For more information go to

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