The EU Pay Transparency Directive requires equal pay for equal work and for work of equal value. That second phrase trips up many employers, because it means comparing jobs that can look nothing alike.
Equal value is about job demands, not job titles
Two different roles are of equal value when they are comparable after assessment against objective, gender-neutral criteria, regardless of department or job title. The comparison looks at what the job demands, not who does it or how it has historically been paid.
The four factors
Value is assessed using four factors: skills (knowledge, qualifications and competencies, including often-overlooked interpersonal skills), effort (physical, mental and emotional demands), responsibility (for people, resources, budgets or decisions) and working conditions (the environment, hours and exposure to risk).
Why it matters for reporting
Gender pay gap reporting and joint pay assessments are carried out by category of workers doing equal work or work of equal value. Sound, documented categories are therefore the foundation of accurate reporting — and the best defence if a pay difference is challenged.
For a fuller walkthrough, including how to group roles, read our explainer on work of equal value.
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