What do we mean by equal pay for work of equal value?

Equal pay means that all workers have the right to receive equal remuneration for work of equal value. While the concept is straightforward, what equal pay actually entails and how it’s applied in practice has proven to be difficult.

“Work of equal value” can mean a job that is the same or similar, as well as a job that is not the same but is of equal value. This distinction is important because women’s and men’s work may involve different types of qualifications, skills, responsibilities, or working conditions, yet be of equal value, and, therefore, merit equal pay.

Chidi King, Director of the Equality Department of the International Trade Union Confederation, and a member of UN Women and ILO’s Equal Pay Champions initiative, gives the example that a job in the male-dominated construction sector may be of the same or similar objective value as a job in the female-dominated childcare sector. However, the childcare job is likely to have lower pay.

This past July, New Zealand passed the Equal Pay Amendment Bill, although existing law guaranteed women and men would be paid equally for the same work. The new law makes sure that women and men are paid equally for work that’s different but has equal value, including in chronically underpaid female-dominated industries.

“Remuneration” entails more than a basic wage; it means all the elements of earnings. In addition to wages, forms of remuneration include overtime pay, bonuses, travel allowances, company shares, insurance, and other benefits. A basic wage is often only a small part of a worker’s full compensation, so it is important to factor all forms of pay into the equation.