What does “equal work of equal value” mean, and how do we define it?

The EU Pay Transparency Directive goes beyond equal pay for the same job. It also requires equal pay for different jobs that are of equal value.

That means comparing roles by the demands they place on employees, not just by their job title or department.

“Equal work of equal value” is a core principle of the Directive. Different roles may still be entitled to equal pay if they require a comparable level of:

• Skill
• Responsibility
• Effort
• Working conditions

For example, a warehouse supervisor and a customer service manager do very different tasks, but if the complexity, responsibility and decision-making are comparable, their roles can be considered equal in value.

How to evaluate fairly:

To assess this, employers need structured systems, such as:

• A clear job architecture or classification framework
• Gender-neutral job evaluation methods
• Documented criteria like technical qualifications, team or budget responsibility, physical or emotional demands, or working conditions

Important distinction:

Performance may affect progression, bonuses or variable pay, but it doesn’t change the baseline value of a role. Equal value is judged on the inherent demands of the job, not on how well someone performs it.

Applying this principle often means formalising role definitions and evaluation processes for the first time. That includes:
●  Mapping roles to consistent categories or grades
●  Ensuring criteria are objective and explainable
●  Training HR and managers to apply frameworks consistently

This not only supports compliance, but it also makes pay and progression decisions clearer and more defensible to employees.

Understanding “equal work of equal value” is essential to creating pay systems that employees perceive as fair and transparent. Without it, even well-meaning organisations can embed hidden inequities.

By putting structured frameworks in place, you move beyond legal compliance and build a workplace culture grounded in clarity, consistency, and trust.