Finding the causes of gender pay gaps in a joint pay assessment means moving beyond the percentage difference and examining why female and male workers in the same category have different average pay levels. Article 10 requires the reasons for those differences, where any exist, to be established jointly by the employer and workers' representatives on the basis of objective, gender-neutral criteria. The investigation should test the pay-setting rules, job evaluation or classification, pay progression, variable compensation and other practices that may explain the difference. A gap is not automatically unlawful, but any explanation relied on must be objective, gender neutral and supported by evidence.
Jurisdiction: European Union
Start With the Category-Level Pay Difference
A joint pay assessment begins with the differences identified between female and male workers within categories of workers. The employer should confirm that the category itself reflects workers performing the same work or work of equal value and that the underlying pay data are complete. The percentage difference is the starting point for diagnosis. It does not by itself establish the cause, and it should not be treated as proof of discrimination without examining the pay decisions and structures behind the result.
Test Each Explanation Against Objective, Gender-Neutral Criteria
Article 10 requires the reasons for differences in average pay levels, where any exist, to be established jointly by the employer and workers' representatives on the basis of objective, gender-neutral criteria. That means an explanation should be capable of being stated clearly, applied consistently and supported by evidence. Vague references to market practice, negotiation skill or managerial discretion are not automatically sufficient. The employer should show why the factor is relevant to the work or pay decision and that it is not based directly or indirectly on sex.
Review Pay Setting and Pay Progression
Differences may arise from starting-pay decisions, movement through salary ranges, promotions, performance increases, skills development, seniority or other progression rules. Article 6 requires criteria used to determine pay, pay levels and pay progression to be objective and gender neutral. During a joint pay assessment, employers should compare how those criteria were applied to female and male workers within the affected category and identify exceptions, discretionary decisions or inconsistent treatment that may have widened the gap.
Review Job Evaluation and Classification
Article 4 requires work of equal value to be assessed using objective, gender-neutral criteria that include skills, effort, responsibility and working conditions, with other relevant factors where appropriate. A category-level pay difference can therefore require a review of whether jobs have been valued consistently. Employers should look for undervalued responsibilities, overlooked soft skills, outdated classifications, inconsistent job descriptions or weighting methods that may produce different outcomes for work of comparable value.
Separate Basic Pay From Variable Compensation Effects
Variable compensation can create or widen a pay gap even when ordinary basic salary is comparatively aligned. Employers should examine eligibility for bonuses, incentive targets, performance ratings, sales opportunities, overtime, premiums and other complementary or variable components where relevant. The objective is to identify whether female and male workers in the same category had comparable access to the mechanisms that produce variable pay and whether the criteria were applied consistently and in a gender-neutral manner.
Turn the Cause Analysis Into Remediation Decisions
Article 10 is not only diagnostic. The joint pay assessment is intended to identify, remedy and prevent unjustified differences. Once the employer and workers' representatives have established which explanations are supported and which differences remain unjustified, the assessment should connect each problem to a corrective measure. That may include individual pay corrections, changes to progression criteria, revised job evaluation, tighter controls on discretion or changes to variable-pay design. The precise remedy should follow the cause rather than applying one generic adjustment to every situation.
Frequently Asked Questions
Does a gender pay gap automatically prove discrimination?
No. A measured difference is a signal for investigation. The employer must examine whether the difference can be justified by objective, gender-neutral criteria and remedy unjustified differences.
Who establishes the reasons for pay differences in a joint pay assessment?
Article 10 states that the reasons, if any, are established jointly by the employer and workers' representatives on the basis of objective, gender-neutral criteria.
What areas should employers review when investigating causes?
Relevant areas can include pay setting, job evaluation, pay progression, variable compensation and other practices that affect pay outcomes.
Related Guides
Official Sources
Requirements and practices differ by jurisdiction and organisation. Check current local law, official guidance and professional advice for a specific situation.