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Pay Equity Audit Template

A pay equity audit template to find and fix unexplained pay gaps — group comparable roles, control for legitimate factors, and document remediation defensibly.

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What you get

  • A structured process to group employees into comparable roles
  • Columns to control for level, location, tenure, and performance
  • A gap-analysis tracker flagging unexplained pay differences
  • A remediation log to document and budget every correction

Template preview

A preview of the structure. Download the PDF or CSV for the complete, ready-to-use version.

Audit setup

Run this with legal involved so the analysis is privileged and remediation is defensible.

Scope

Audit date & owner
Population in scope— whole company or specific units
Protected characteristics analysed— per local law
Legal / privilege owner

Comparator analysis

Pay groupEmployeeDemographicLevelLocationTenure (yrs)Base salaryCompa-ratio

Gap analysis

Pay groupGroup averageLargest unexplained gapStatistically significant?Flag

Remediation log

EmployeeCurrent salaryAdjusted salaryCostEffective dateRationale

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How to use this template

  1. 1

    Group comparable roles

    Cluster employees doing substantially similar work into pay-analysis groups before comparing anything.

  2. 2

    Control for legitimate factors

    Record level, location, tenure, and performance so you isolate gaps that those factors don't explain.

  3. 3

    Flag the gaps

    Compare pay within each group by demographic and flag any unexplained differences for review.

  4. 4

    Remediate and document

    Set corrective adjustments, budget them, and keep the audit and decisions as a defensible record.

Frequently asked questions

How do I run a pay equity audit?

Group employees into comparable roles, control for legitimate factors like level, location, and tenure, then test for unexplained pay differences by demographic. Flag, remediate, and document each gap.

What counts as a legitimate pay difference?

Differences explained by job-related factors — role level, scope, location, relevant experience, performance, and tenure. A gap is a problem only when those factors don't account for it.

How often should I audit pay equity?

At least annually, ideally before the merit cycle so you can correct gaps as part of the budget. Gaps reopen over time through hiring, raises, and promotions, so a one-off audit isn't enough.