Key terms explained
A plain-language glossary.
Pay differences between women and men working in different jobs at the same organisational level (e.g. mid level or senior level), where jobs have comparable value but receive different pay (OECD, 2022). For example, at the same pay grade, women may work in administrative coordination jobs, while men are in logistics or operations, with the latter being paid more, despite similar levels of skill and responsibility. Women are also more concentrated in jobs ranked lower within each level of seniority, further widening the gap.
A situation in which one person is treated less favourably on the grounds of sex than another person is, has been or would be treated in a comparable situation (Article 3(1), Pay Transparency Directive).
The principle that all workers must receive the same remuneration for the same work or for work of equal value, without discrimination based on sex. It applies to basic or minimum wage or salary and any other compensation (see the definition of Pay), whether provided directly or indirectly, in cash or in kind, that a worker receives directly or indirectly (complementary and variable components) in respect of her or his employment from her or his employer. Equal pay requires that pay is determined according to the same objective, gender-neutral criteria for women and men performing the same work or work of equal value (Article 157, TFEU; Pay Transparency Directive).
Work determined to be of equal value according to non-discriminatory and objective gender-neutral criteria – based on skills, responsibility, effort and working conditions. Any other factors relevant to a specific job can also be included in this assessment. Assessment of value should be based on objective, gender-neutral criteria agreed upon with workers’ representatives where such representatives exist. These criteria should be applied in an objective, gender-neutral manner that excludes any direct or indirect discrimination based on sex (Article 3, Article 4(4), Pay Transparency Directive).
Body or bodies designated by a Member State to promote, analyse, monitor and support the equal treatment of all persons without discrimination on the grounds of sex. These bodies may form part of agencies responsible at the national level for the defence of human rights or the safeguarding of individuals’ rights. Their competencies include providing independent assistance to victims of discrimination in pursuing their complaints, conducting independent surveys concerning discrimination, publishing independent reports, making recommendations on any issue relating to such discrimination and exchanging information, at the appropriate level, with corresponding European bodies (Article 20, Equal Treatment Directive, replaced by provisions of Article 23 of Directive 2024/1500 on standards for equality bodies in the field of equal treatment and equal opportunities between women and men in matters of employment and occupation, and amending Directives 2006/54/EC and 2010/41/EU).
To learn more, visit the European Directory of Equality Bodies.
A factor is a key criterion used in analytical job evaluation to assess the demands and characteristics of a job (ILO, 2008). It represents a broad area of job content that contributes to the overall value of the work. Four factors are considered essential and sufficient for gender-neutral job evaluation:
- skills,
- effort,
- responsibility,
- working conditions.
These criteria must be used to assess whether workers are in a comparable situation with regard to the value of their work, and must be applied uniformly to all jobs being evaluated, enabling objective comparisons across diverse jobs or positions (Article 4(4), Pay Transparency Directive). If appropriate, any other factors that are relevant to the specific job may be taken into account. Relevant soft skills must not be undervalued (Article 4(4), Pay Transparency Directive). Factors need to be agreed with workers’ representatives where such representatives exist.
Each of the four factors can be broken down into subfactors, capturing the characteristics of jobs in greater detail. Subfactors must meet three conditions: they should be appropriate to the sector concerned, methodological and without gender bias (European Commission, 2013).
The plan of criteria against which the relative value of jobs will be evaluated. It includes a set of factors broken down into subfactors that capture specific job characteristics. Factors and subfactors are typically divided into levels. Each level is assigned a point value, creating a scoring framework for evaluating jobs (Armstrong et al., 2003).
Social attributes and opportunities associated with being female and male and the relationships between women and men and between girls and boys. These attributes, opportunities and relationships are socially constructed and are learned through socialisation processes. They are context-/time-specific and changeable (EIGE, n.d.-c).
Prejudiced actions or thoughts based on the gender-based perception that women are not equal to men in rights and dignity (EIGE, n.d.-a).
Any difference in pay between workers performing the same work or work of equal value that is based on sex and cannot be justified by objective, gender-neutral and bias-free criteria. It includes situations in which workers are paid differently due to pay structures, practices or job evaluation systems that result in disadvantage to one sex (Article 4, recital 17, Pay Transparency Directive).
An inclusive and practical tool for advancing gender equality and an essential skill for those involved in development and policymaking. It ensures that women and men are represented fairly and equally, that language reflects balanced access to opportunities and responsibilities and that it challenges gender stereotypes while supporting inclusive decision-making processes (EIGE, 2024).
The process of assessing and ranking jobs within an organisation on the basis of objective, gender-neutral criteria, to determine the job’s relative value, which then informs the classification of similar jobs into job groups or pay grades. When job evaluation and classification systems are not designed to be gender-neutral, they may unfairly prioritise skills, responsibilities or jobs typically associated with men, while undervaluing those more commonly performed by women. This can lead to gender-based pay discrimination, highlighting the need for fair and unbiased methods to evaluate and determine pay (Pay Transparency Directive).
The difference in average pay levels between women and men workers, expressed as a percentage of the average pay level of male workers’ earnings (Article 3(1), Pay Transparency Directive).
A type of language in which words, such as nouns, pronouns or job titles, are assigned a gender, usually masculine or feminine (Jakiela et al., 2018). For example, in English, terms such as ‘fireman’ or ‘chairman’ reflect male defaults, while alternatives such as ‘firefighter’ or ‘chairperson’ are gender-neutral. In many other EU languages, such as French, German or Spanish, even everyday nouns such as ‘teacher’ or ‘friend’ change form depending on whether they refer to a woman or a man. Because gender is embedded in the way people speak, gendered language can shape perceptions of gender roles and has been linked to stronger stereotypes and the lower participation of women in the workforce.
A situation in which an apparently neutral provision, criterion or practice would put persons of one sex at a particular disadvantage compared with persons of the other sex, unless that provision, criterion or practice is objectively justified on the basis of a legitimate aim, and the means of achieving that aim are appropriate and necessary (Article 3(1), Pay Transparency Directive).
Discrimination based on a combination of sex and any other ground or grounds of discrimination protected under Directive 2000/43/EC implementing the principle of equal treatment between persons irrespective of racial or ethnic origin, the Race and Ethnicity Equality Directive, and Directive 2000/78/EC establishing a general framework for equal treatment in employment and occupation, the Equality Directive, which further protect from discrimination based on religion or belief, disability, age or sexual orientation (Article 3(1), Pay Transparency Directive).
The process of grouping jobs into levels or grades according to their overall value to the organisation. Each grade is defined by a set of characteristics, such as the type of work, its complexity and the level of responsibility involved. Jobs are then compared against these grade definitions and placed in the most suitable category (Armstrong et al., 2003).
A document that describes a job within an organisation, covering the purpose of the job, the area it relates to, the functions and duties involved, the experience needed to perform the job and the job environment. Job descriptions define what needs to be done, what qualifications and skills are required and the working conditions (ELA, 2022).
A systematic process for establishing the relative worth of jobs within an organisation (Armstrong, 2018).
A summary of a job’s main duties, responsibilities, required qualifications and working conditions. It is developed on the basis of information collected about the job and serves as the basis for assigning points to a job during the job evaluation process (ILO, 2008).
The overall function or purpose of a job within an organisation, defined in terms of the key contributions expected from the job holder (Armstrong, 2018). It encompasses the main responsibilities, the knowledge and skills required, the level of decision-making authority and the typical effort and conditions under which the work is carried out.
A process in which employers, in collaboration with workers’ representatives, examine and evaluate the reasons behind pay disparities between women and men workers in a specific job category (Article 10(1)(a), Pay Transparency Directive). A joint pay assessment is required when an employer’s pay reporting reveals a difference of at least 5 % in average pay between women and men in the same category of workers (Article 10(1)(a)), and this gap cannot be justified based on objective, gender-neutral grounds or has not been remedied within six months.
This mechanism builds on earlier transparency obligations. Under Article 7 of the Pay Transparency Directive, workers have the right to request and receive information on their own pay and on the average pay levels for colleagues doing the same or equivalent work, broken down by sex. Article 9 requires employers to report on gender pay gaps and related indicators by category of workers, which serves as the basis for determining whether a joint pay assessment will be triggered.
Positions on a scale that measures the intensity, frequency, duration or other dimensions of a subfactor. These levels make it possible to distinguish between the requirements of different jobs (ILO, 2008).
Pay differences between women and men doing the same job or work of comparable value, without objective justification. Examples are if:
- a woman and a man working in the same job as data analysts, with the same responsibilities and experience, receive different salaries (same work);
- a payroll officer (a woman) and an IT support technician (a man) are paid unequally, even though both roles require similar levels of technical skill, problem-solving and responsibility (work of equal value).
These gaps reflect unequal pay for equivalent contributions and often underpin wider pay disparities across levels and departments within an organisation (Workplace Gender Equality Agency, 2016; OECD, 2023).
Overall average pay differences between all women and men across an organisation or department (OECD, 2022).
Not only salary (ordinary basic or minimum wage) but also any benefits in addition to the ordinary basic or minimum wage or salary that the worker receives directly or indirectly in respect of their employment from their employer, whether in cash or in kind. Complementary and variable components in addition to the salary may include, but are not limited to, bonuses, overtime pay, travel facilities, housing and food allowances, pay for attending training, payments in the case of dismissal, statutory sick pay, statutory required pay and occupational pensions (Article 3, Pay Transparency Directive).
Gross annual pay and the corresponding gross hourly pay (Article 3(b), Pay Transparency Directive). A difference in average pay level between women and men of at least 5 % in any category of workers is used as a criterion to determine whether a joint pay assessment is needed.
The process of how a worker moves to a higher pay level. Criteria related to pay progression can include, among other factors, individual performance, skills development and seniority (recital 35, Pay Transparency Directive).
A system used by employers to determine and manage worker pay, taking into account wages, salaries and any additional benefits, whether in cash or in kind, that a worker receives directly or indirectly from their employer (Pay Transparency Directive).
The difference, usually given as a percentage, between pay grade midpoints in a pay structure. It is also referred to as midpoint progression or midpoint differential (adapted from (ERI, n.d.).
Determining each level of a job for each factor, which is worth a certain number of points. The total points that a particular job collects is called the point score (Armstrong, 2018).
Biological characteristics that define humans as female or male (EIGE, n.d.-d).For the purposes of EU equality legislation on equal pay between women and men for equal work or work of equal value, discrimination on the basis of sex includes discrimination against individuals who intend to undergo, are undergoing or have undergone gender reassignment (see recital 5, Pay Transparency Directive, and recital 3, Equal Treatment Directive (recast)).
A process in which some factors or subfactors are weighted (assigned a value) higher than others when determining their relative importance and attributing a numerical value to each (ILO, 2008).
Based on the Pay Transparency Directive, all individuals who receive pay under various forms of employment relationships, encompassing both full-time and part-time work, regardless of contractual terms and other categories (including fixed-term contracts, persons with a contract of employment or employment relationship with a temporary agency and workers in management jobs who have an employment contract or employment relationship as defined by law, collective agreement and/or practice in force in each Member State), provided that they fulfil relevant criteria (this includes domestic workers, on-demand workers, intermittent workers, voucher-based workers, platform workers, workers in sheltered employment, trainees and apprentices) (recital 18, Pay Transparency Directive). The Pay Transparency Directive also applies to employment applicants within the scope of Article 5, regulating pay transparency for job applicants.