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What is an Unadjusted Pay Gap?

Updated: Jan 16



The unadjusted pay gap is the difference between the average gross hourly wage of two different groups. These groups could be, for example, Women vs. Men, or Diverse persons vs. Male persons, or Female persons vs. Diverse persons. This is then referred to as the Gender pay gap. However, if the gross hourly wages of different age groups of employees are compared, for example: all employees under 35 years of age with all employees over 35 years of age, then this is an Age pay gap. These categories indicate which area of the business has pay gaps as the result of different factors and how they can be adjusted to achieve more equitable salaries using the following formula:


 Average gross hourly wage of all employees in the presumably advantaged group, e.g. Male employees (ADVANTAGE_Gender) - average gross hourly wage of all employees in the presumably disadvantaged group, e.g. Female employees (DISADVANTAGE_Gender) / (ADVANTAGE_Gender) * 100


The calculation for the Age pay gap between those younger than 30 years of age compared to those over 30 looks like this:

 Average gross hourly wage over 30 years old - Average gross hourly wage under 30 years old / Average gross hourly wage over 30 years old

 

Example: 37,43 € - 33,12 € / 37,43 € * 100 = 11,51 % Pay Gap




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