Fair pay

A new challenge and opportunity for your business

Fair pay includes multiple dimensions

Fair pay has been a topic of importance for employers. It has become even more important due to the upcoming voice of stakeholders, society and regulators as well as the increased preference of (potential) employees to work for companies paying fair. Fair pay means that employees regardless of gender and ethnicity receive equal pay for equal work have equal growth opportunities and are equally recognized for performance. Differences in pay arise due to a complex mix of (non) demographic factors such as gender, performance, location and time in role. Key in advocating pay fairness is transparency in pay and diversity.

Are you prepared to disclose the numbers on fair pay and improve equal (growth) opportunities within your organisation?

New legislation drives transparency in pay

Equal pay for equal work, one of the fair pay dimensions, is already a legal requirement. Society and regulators are motivating employers to close gaps on equal pay across Europe. The European Commission proposed amendments in the Posted Workers Directive aiming on maximising the posting period to 12 months. All posted workers exceeding this period should benefit from the same rules governing pay and working conditions for local workers leading to equal pay for equal work at the same place. It is expected that new legislation will soon be in place for compulsory execution of pay audits and certification in the Netherlands. 

The proposed Dutch legislation aims to close the gender pay gap, 16,1% in the Netherlands, which is one of the aspects within the playfield of fair pay. The gender pay gap is the difference between men’s and women’s average earnings across an organisation or the labour market. It is expressed as a percentage of men’s earnings. 

Other countries already implemented legislation with respect to disclosure of gender pay. For example in the UK it is required to report the gender pay gap as of this year and Iceland has introduced the requirement to obtain equal pay certificates from the government. Fair pay and both national and European legislation are related to reputational, regulatory, financial, operational and employee related risk but when fair pay is measured, it goes along with several benefits for your organisation as well. Are you ready to benefit from the potential impact of fair pay?

Risks and benefits

Equal pay is a legal requirement. Non-compliance could result in claims and high fines. A broader approach to achieve fair pay reduces legal risks.

Fair pay helps to avoid reputational damage and to build a positive brand as equal opportunity employer.

Ensuring and disclosing fair pay are high impact interventions. It helps to attract and retain talent, to improve employee satisfaction and to increase productivity and performance. 

PwC, your partner in fair pay audits

PwC can help with numerous activities around fair pay, from a broader HR perspective, such as

  • Audits to measure fair pay (e.g. pay gaps, pay ratios), and assistance with  respect to its reporting 
  • Design and review policies around diversity, performance and remuneration
  • Analyse Legal risk and advice on internal policies to mitigate these pay gap related risks going forward
  • (Re)design job frameworks, job grading and salary schemes
  • (Re)design performance and talent management frameworks
  • (Re)design (global) mobility policies
  • Reviews and optimization of internal processes, communications and implementation support
  • Training and coaching teams

PwC is a leading financial audit firm with extensive experience in fair pay audits. A worldwide network allows us to run global audits in an efficient and consistent manner. We have specialists in HR, Reward, Global Mobility, Legal & Diversity and a successful methodology for in-depth quantitative & qualitative analysis. This puts us in a strong position to provide a comprehensive review enriched with subject matter expertise. Besides, we can advise on strategies to reduce the gaps and related risk.

Contact us

Janet Visbeen

Janet Visbeen

Partner , PwC Netherlands

Tel: +31 (0)88 792 64 29

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Contact us

Bas van de Pas

Bas van de Pas

Partner, PwC Netherlands

Tel: +31 (0)88 792 69 89