Does anyone have a basic definition for "individual pay equity"?

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thetall's profile pic

thetall | (Level 3) Educator

Posted on

Individual pay equity refers to a remuneration rate that has been determined through fair and impartial means. Pay equity involves the establishment of remuneration that is commensurate to the work being done. Individual pay equity should be based on duties and responsibilities performed which translate to value for the business.

The Equal Pay Act of 1963 proscribes (that is prohibits, forbids) differences in pay based on gender. Further, the Civil Rights Act of 1991 prohibits difference in pay based on religion, sex, color, race, national origin, age, disability, pregnancy and veteran status. This directs that personal bias with regards to individual differences may not form the basis for remuneration.

Compensation practice under individual pay equity, therefore, is to focus on remuneration based on value. Payment is thus to be harmonized and commensurate with value to ensure the compensation system is equitable for all workers.

pmiranda2857's profile pic

pmiranda2857 | High School Teacher | (Level 1) Educator Emeritus

Posted on

Individual pay equity is compensation given to an employee based on the value that the individual employee brings to the corporation.

Your pay or salary is based on your value as an employee, which translates into how your input as an employee contributes to the profit or earning capacity of the company.


krishna-agrawala's profile pic

krishna-agrawala | College Teacher | (Level 3) Valedictorian

Posted on

Individual pay parity refers to equality between salaries and wages paid to different individuals working in the same organization.

In many countries, paying lower wages to some individuals as compared to others in the organization performing similar Jobs is considered discrimination and is illegal.

Frequently systematic disparities in pay may exist in an organization. For example. women may be less then men for similar jobs. A person or group of persons, who are thus discriminated, have the option of appealing against it in a court of law.

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