What is the Global Landscape for Pay Equity?

Equal pay for equal work is a simple concept that is often hard to implement in organizations and political systems across the world. Unfortunately, pay inequity is widespread in many areas of the globe. Despite this, there are those that still fight for equal rights and strive for a better future where fair and equitable pay is the norm.

In this article, we will explore the global landscape of pay equity. We will assess what the pay equity situation is in various countries and what the path to global pay equity might be. So, join us on this journey to see what pay equity is through the lens of the global landscape.

What is Pay Equity?

At Salary.com, we define pay equity as equal pay for comparable jobs that is internally equitable, externally competitively, and transparently communicated. For organizations, pay equity requires a comprehensive solution that reflects what’s happening inside and outside the organization. This defines how employers approach their relationship with their employees.

In the global landscape, people mostly talk about pay equity as a situation where men and women are paid the same for doing the same job. Of course, pay equity extends further than this, as pay gaps also arise from personal attributes such as race, ethnicity, age, disability, and more. The bottom line is that pay equity is an issue of fairness, that pushes for everyone to have equal access to adequate remuneration in return for their labor.

In many places around the world, pay equity isn’t guaranteed and this leads to wide and persistent pay gaps to exist. Even though this is the case, the global landscape for pay equity is experiencing a shift towards greater equality. Laws and regulations have been introduced in many countries, but there is still a long way to go before true pay equity is achieved in all corners of the globe.

Pay Equity in Different Countries

Gender-based pay gaps exist in every country. This is a sad reality and many nations have yet to take any meaningful steps toward closing the gaps that exist. To gain some perspective on the global landscape, let’s take a look at the differences in wages between men and women in a variety of countries.

Using a Statista study from 2021, we can see that the country in the OECD with the smallest gender pay gap is Belgium with a 1.17% difference between genders. In contrast, South Korea has the highest gender pay gap with a 31.06% difference. The USA sits at a 17.65% difference between genders in comparison to the highest and lowest.

Other countries with lower gender pay gaps include Bulgaria at 2.55% and Colombia at 3.19%. Countries with wider pay gaps include Israel and Latvia, with 24.32% and 23.95% difference in pay between genders respectively. The average for OECD countries in the study shows that the difference in pay between genders is 11.93%

When looking at these discrepancies, the data highlights how prevalent it is in nations across the world. This study only highlights OECD nations, which means that many countries are unaccounted for in the study. As well as this, it is important to note that other pay gaps exist concerning other factors such as ethnicity and disabilities.

The Path to Global Pay Equity

Although it is difficult to implement pay equity globally, steps can be taken to narrow the wage gaps that exist. The path to achieving this is complex and requires commitment from organizations, employees, and lawmakers across different nations. Here are some things to consider when striving for pay equity:

• Laws and Regulations

To achieve global pay equity, there is a need for stern laws and regulations to help set standards for closing wage gaps. Many countries, including the US, have passed laws that address areas such as pay secrecy, transparency, equal pay, job classification systems, minimum wage policies, and more.

• Transparency

Transparency is also a key component in achieving global pay equity. By making real-time salary data available to workers, organizations can make sure that their employees understand how their salaries compare to their colleagues. Having more transparency means that there’s a better chance of identifying pay disparities in an organization, which can then be addressed.

• Education

Educating management, as well as regular people, on the issues of biases associated with personal attributes, can help make a crucial step towards achieving global pay equity. Educating employees within organizations on their rights in their individual countries can also help foster global pay equity.

The path to reaching global pay equity will take time, but it is achievable. The creation of new laws, the introduction of transparency within organizations, and education are all necessary steps along this journey. It has to be done correctly, however, otherwise pay equity won’t be a reality for employees across the world.

Conclusion

There are many challenges in the global pay equity landscape. From addressing present wage gaps to implementing new laws, it takes change to make global pay equity a reality. As well as this, it is up to us to demand pay equity and hold governments and organizations accountable for their actions. If done successfully, we can live in a world where everyone is paid fairly and equitably, no matter their gender, age, race, or nationality.