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Do variable allowances need to be included in the Equal pay audit?
Do variable allowances need to be included in the Equal pay audit?

Equal pay audit, variable allowances

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Written by Tobias Danielsson
Updated over a week ago

Are you thinking about what to do with variable supplements or bonuses and commissions in your equal pay audit? Read below how one of out Pay Equity Experts reasons about this:

The salary survey aims to discover and remedy salary differences that could be attributed to gender.

As a customer, you can choose to either read in only base salary and fixed allowances or you can also read in values for variable allowances such as for example commission, bonus, OB allowance etc.

So the answer to the question in the header is "No, but...."

The majority of our customers choose to only read in the base salary and fixed in the system because variable allowances apply to all employees and are judged to be gender neutral. For example, as a rule, all salespeople within a specific category are covered by the same commission opportunity, which is thus completely linked to performance and not to the employee's gender.

However, if there is a suspicion that the variable supplements are not applied gender-neutrally, there can certainly be great value in bringing this information into the system.

How do we handle the car benefit?

Either you input the value of the benefit as a salary supplement (=benefit value), or you can analyze this separately in policy and practice. Is a car something that belongs to a specific position, where, for example, all salespeople are offered a car? Then it's the same for everyone regardless of gender and can be analyzed outside of the wage mapping.

Regardless of whether you, as a customer, choose to import data on variable supplements or not, it is important that this is shown in the documentation (final report). It is of course of great importance that a separate analysis has been or will be made of these additions to also guarantee that they are gender neutral.

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