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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 group | Employee | Demographic | Level | Location | Tenure (yrs) | Base salary | Compa-ratio |
|---|
Gap analysis
| Pay group | Group average | Largest unexplained gap | Statistically significant? | Flag |
|---|
Remediation log
| Employee | Current salary | Adjusted salary | Cost | Effective date | Rationale |
|---|
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How to use this template
- 1
Group comparable roles
Cluster employees doing substantially similar work into pay-analysis groups before comparing anything.
- 2
Control for legitimate factors
Record level, location, tenure, and performance so you isolate gaps that those factors don't explain.
- 3
Flag the gaps
Compare pay within each group by demographic and flag any unexplained differences for review.
- 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.