Creating Momentum for Fair Pay: Assessing Policies with Leverage

Fair pay has reached a critical point in debates and discussions: many countries are sharpening […]

Policy Study

16/02/2022

Fair pay has reached a critical point in debates and discussions: many countries are sharpening their policies implementing fair pay and combining different approaches – from targeting single employees, corporate structures, collective agreements, or the dissemination of information. The goal of this policy paper is to assess the different policy instruments to ensure fair pay across Europe and the world as well as to discuss their leveraging effects.

This paper demonstrates that mandated analysis of remuneration systems is key to achieving fairness for all. Thereby, pay gaps can be monitored and decreased, and neutral job evaluation systems implemented. Those policies targeting remuneration systems on corporate levels are most effective, as putting fair pay into practice is a systemic issue and not an individual burden.

The European Union and many others have realised the need for political action on fair pay. It takes bold leadership to push for far-reaching policies that target structural impediments and many hope that the European Commission and France among others will take exactly this role – against all backdrops on gender equality. The most effective levers for fair pay are corporate action, regular analysis of pay systems, and benchmarks combined with fines – including the drive to get better by every analysis. The piece of art is not to close pay gaps, but to keep them sustainably closed.

Read the Policy Study | Version française

Read also “Fair Pay a European Race to Equality and Equal Opportunities for All” » Policy brief

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