A pay-band audit an HR team can run today
Equal-pay compliance is testable. Run each pay band through the checklist below; a "no" anywhere is a gap to fix before an inspector or a claim finds it.
| # | Audit question | A gap looks like |
|---|---|---|
| 1 | For each role, is work of the same or similar nature identified across all genders? | No role map, so like-for-like cannot be compared. |
| 2 | Within a like-for-like group, are pay ranges the same regardless of gender? | Men and women in the same band on different ranges. |
| 3 | Were any wages reduced to achieve equal pay? | A downward revision used to close a gap (this is barred). |
| 4 | Is recruitment for the same work open to all genders? | Gendered job criteria with no lawful restriction. |
| 5 | Are starting offers for the same role gender-neutral? | Systematically lower offers to one gender. |
| 6 | Is there a record showing how each band was set? | No documentation to defend a pay decision. |
Only where the employment of a gender is prohibited or restricted by law is a distinction permitted.
The rule in plain words
The Code on Wages carries the old Equal Remuneration Act into a single prohibition: there shall be no discrimination among employees on the ground of gender in matters relating to wages, for the same work or work of a similar nature done for the same employer. An employer cannot reduce anyone's wages to comply, and cannot discriminate on the ground of sex in recruitment for the same or similar work, except where the employment of a particular gender is prohibited or restricted by law. Where there is a dispute about whether two jobs are of the same or similar nature, an authority notified by the appropriate government decides.
A worked example
Two data-entry operators do identical work. One is paid Rs 22,000 and the other Rs 25,000, with the only difference being gender. That is a prohibited wage discrimination. The fix is to raise the lower wage to Rs 25,000; the employer cannot instead cut the higher wage to Rs 22,000, because reducing wages to achieve equality is expressly barred.
Exceptions and fine print
- A genuine difference in the nature of work, seniority or measurable output is not discrimination; a difference on the ground of gender is.
- Restrictions that exist by or under another law, for example limits on certain hazardous work, are not treated as discrimination.
- The prohibition covers both wages and the conditions of employment at recruitment.
What an employer must do
- Map roles into same-or-similar-work groups and compare pay ranges within each.
- Close any gender-based gap by levelling up, never by cutting the higher wage.
- Keep the rationale for each pay band on record.
- Review job adverts and offer templates for gendered criteria.
What a worker can do
- Compare your wage with colleagues doing the same or similar work.
- A gender-based difference in pay for like work is challengeable.
- Disputes about whether work is similar are decided by a notified authority, not by the employer alone.
Beyond wages: recruitment and conditions
The prohibition is not limited to the pay figure. An employer cannot discriminate on the ground of sex when recruiting for the same or similar work, and cannot discriminate in the conditions of employment attached to that work. The single exception is where the employment of a particular gender in that work is prohibited or restricted by or under another law, for example specific restrictions on certain hazardous processes.
What is not discrimination
A pay difference that rests on a genuine, measurable ground, seniority, a difference in the nature of the work, or output on a piece-rate, is not gender discrimination. The line the code draws is against a difference that exists because of gender. This is why the audit starts by grouping genuinely like-for-like roles: only within such a group does an unexplained gender gap point to a breach.
Who decides a dispute
When employer and employee disagree over whether two jobs are of the same or similar nature, the question is not left to the employer. An authority notified by the appropriate government decides it, which means a pay decision has to be defensible on record rather than on assertion.
Frequently asked questions
Does the Code on Wages require equal pay?
Yes. It prohibits discrimination on the ground of gender in wages for the same work or work of a similar nature done for the same employer, carrying forward the Equal Remuneration Act.
Can an employer cut a higher salary to make pay equal?
No. The code bars reducing anyone's wages to comply with the equal-pay obligation; the gap must be closed by raising the lower wage.
Who decides if two jobs are similar?
An authority notified by the appropriate government decides disputes about whether work is of the same or similar nature.
Are any gender-based distinctions allowed?
Only where the employment of a particular gender in that work is prohibited or restricted by or under another law.
Audit your pay bands for equal-pay compliance
ZeniaHR groups like-for-like roles and surfaces gender-based pay gaps so you can level up before a claim or inspection.
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