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Pay transparency & compliance

Glossary

The pay transparency and pay equity terms used in Evenpay, explained in plain language.

Written By Karl

Last updated About 9 hours ago

Key terms used in Evenpay and in the EU Pay Transparency Directive.

Term

Meaning

Adjusted pay gap

The gap that remains after accounting for pay factors such as job grade or experience. Sometimes called the unexplained gap.

Anonymity threshold

The minimum number of people in a group before Evenpay shows its pay figures, to protect individuals.

Baseline

The pay equity scenario that reflects your real, current situation. Alerts are created from it once it's active.

Channel

A version of the pay information request portal with its own branding, rules and settings.

Compa-ratio

An employee's pay divided by the midpoint of their pay band. 100% means exactly at the midpoint.

Comparison group / cohort

The employees someone is compared with: the same position, or work of equal value.

Cooldown

How long an employee waits before making another pay information request.

Employee representative

A worker representative who can receive pay information on an employee's behalf, for example when a group is too small to share directly.

FTE

Full-time equivalent. Part-time pay is scaled to a full-time amount so people can be compared fairly.

Joint pay assessment

A review employers must carry out with employee representatives when an unexplained gap of 5% or more isn't fixed in time.

Mean and median

The mean is the average. The median is the middle value, which is less affected by a few very high or low salaries.

Pay band

The minimum, midpoint and maximum pay for a position or level.

Pay factor

A reason pay can differ, such as job grade, experience or performance, that you include in the analysis. Pay factors should be objective and gender-neutral. Including one explains part of a gap; it doesn't by itself make the difference justified.

Pay quartiles

Employees split into four equal groups from lowest to highest paid, showing the share of women and men in each.

Pay rationale

A documented reason why one employee's pay differs from their group's, recorded with tags and evidence.

Reference group

The group whose pay the gap is measured against, men's pay by default.

Unadjusted pay gap

The raw difference between women's and men's pay, before taking any factors into account.

Variable pay

Pay on top of base salary, such as bonuses and commissions.

Work of equal value

Different jobs that are worth the same, judged by skills, effort, responsibility and working conditions.

Worker category

A group of workers doing the same work or work of equal value, used in pay gap reports.