What is Pay Equity?

A definition of Pay Equity

“Pay equity refers to the practice of ensuring that all employees are paid fairly and equally for performing the same or comparable work, regardless of gender, race, or other characteristics.”

Pay Equity in Business Glossary - What is  Pay Equity?

Business Glossary > What is Pay Equity?


Examples of Pay Equity in a Sentence:

The company reviews salaries annually to ensure pay equity.

Achieving pay equity is crucial for maintaining employee morale.

Pay equity audits can reveal disparities in a company’s compensation practices.

Why is Pay Equity Important in Business?

Pay equity is crucial for fostering a fair and inclusive workplace. It is essential for attracting and retaining diverse talent, enhancing employee satisfaction, and reducing legal risks associated with wage discrimination claims.

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Associated Terms

Here are some associated business terms and synonyms for “Pay Equity”:

  • Equal Pay
  • Wage Parity
  • Salary Equity

Google’s Approach to Pay Equity

Google conducts annual pay equity audits to ensure its employees are paid equally for similar roles. This initiative is part of its commitment to diversity and inclusion, helping to address wage disparities across different employee groups.

Final Notes on Pay Equity

Companies aiming for pay equity should regularly conduct salary audits, review job classifications, and ensure transparent compensation practices. Addressing these factors helps build a fairer workplace and enhances overall organizational reputation.


This has been a definition of Pay Equity meaning.

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