What is Pay Equity in HRM?

Learn Pay Equity definition in hrm with explanation to study “What is Pay Equity”. Study pay equity explanation with HRM terms to review HRM course for online MBA programs.

Pay Equity Definition

  • Similarity in pay for all jobs requiring comparable knowledge, skills, and abilities, even if actual job duties and market rates differ significantly.

    Human Resource Management by Robert L. Mathis, John H. Jackson



Pay Equity Explanation

In 1987, the Ontario government passed the Pay Equity Act. The Act portrays the base prerequisites for guaranteeing that a business' remuneration practices give pay value to all representatives in female employment classes. The reason for the law is to change foundational sexual orientation discrimination in pay for work performed by representatives in female employment classes. The Act requires private part businesses with at least ten representatives and all open division bosses to esteem and contrast employments typically done by ladies with those generally done by men in a goal and predictable manner utilizing components of ability, exertion, duty and working conditions. A female activity class must get remuneration that is at any rate equivalent to the pay that is paid to a male activity class of equivalent or similar value.

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