International Equal Pay Day: Key Compliance Considerations for Employers

Commemorated on 18th September every year, the International Equal Pay Day primary aims to spread awareness about the importance of equal pay in promoting inclusive workplaces. It urges employers, policymakers and other stakeholders to address two related aspects of pay equality i.e. equal pay for equal work and equal pay for work of equal value.[1]

Equal pay regulation across jurisdictions is no longer confined to prohibiting differences in the wages paid to men and women performing the same work. They operate alongside equal employment opportunity / anti-discrimination legislation that prohibit employers from making decisions relating to pay, benefits, promotions, hiring, termination and other employment conditions not only on the basis of gender but also on the basis of other protected characteristics such as age, race, religion, language ability, nationality, marital status, pregnancy status, caregiving responsibilities, sexual orientation status, disability etc.

Iceland has adopted a unique approach to ensure equal pay. Effective 1 September 2026, employers with an average of 50 or more employees must analyse and report gender pay differences every three years and prepare a corrective action plan where any unexplained pay gap is identified. Employers with 25 or more employees must continue to prepare and submit an equality plan. The new requirements shift the focus from obtaining equal pay certification to reviewing pay practices and taking corrective action to address pay disparities. Employers holding an active certification prior to September 1, 2026, can transition to this system once their existing certification expires. 

In this blog post, we have covered how some countries around the world have addressed pay equity and non-discrimination in remuneration basis gender.

Key Compliance Considerations for Employers around the world

• India’s Code on Wages, 2019 prohibits gender discrimination in wages and recruitment for same work or work of similar nature. (Section 3)

• Equality Act 2010 United Kingdom requires employers to ensure equal pay to men and women for equal work or work of equal value. A sex equality clause is treated as forming part of an employee’s contractual terms where statutory conditions are met (Section 64 to Section 80)

• In Australia, the Fair Work Act 2009 enables Equal Remuneration Orders to ensure equal remuneration for men and women performing work of equal or comparable value. (Sections 302 to Section 306)

• Equal Pay Act, 1963 in the United States requires equal pay for substantially equal work irrespective of sex. [29 U.S.C. §206(d)]

• Thailand Labour Protection Act B.E. 2541 (1998) requires male and female employees performing work of the same nature, quality and quantity or work of equal value to receive equal wages. (Section 53)

• Bangladesh Labour Act, 2006 prohibits discrimination between men and women in wages for the same work or work of similar nature. (Section 345)

• Nepal Labour Act, 2017 prohibits discrimination in remuneration between men and women for work of equal value. (Section 7)

• Labor Code of the Philippines prohibits discrimination against women employees regarding compensation and employment conditions. (Article 135)

• Japan’s Labour Standards Act prohibits discrimination in wages between men and women on the ground of gender. (Article 4)

• South Korea Equal Employment Opportunity and Work-Family Balance Assistance Act requires equal wages for equal value of work irrespective of gender within the same business. (Article 8)

Some jurisdictions have gone beyond gender discrimination (including in pay, benefits, promotion, recruitment, termination and other employment conditions) and prohibits discrimination based on other protected characteristics such as age, race, religion, language, nationality, marital status, pregnancy, caregiving responsibilities, disability, mental health conditions and sexual orientation (where protected).

The Magna Carta for Persons with Disabilities – RA 7277 Philippines prohibits discrimination against persons with disabilities in employment, including compensation and benefits. (Section 32)

Title VII of Civil Rights Act 1964 of United States prohibits discrimination in compensation, terms, conditions and privileges of employment on the ground of race, colour, religion, sex, national origin, sexual orientation, gender identity [Section 703(a)(1), 42 USC §2000e-2(a)(1)].

Australia has several federal laws prohibiting discrimination in employment. The Disability Discrimination Act 1992, Racial Discrimination Act 1975, Sex Discrimination Act 1984 and Age discrimination Act 2004 prohibit discrimination on specified grounds in recruitment and other aspects of employment.

Singapore’s Workplace Fairness Act 2025 (once it comes into effect) will prohibit employers from making discriminatory employment decisions based on protected characteristics such as age, nationality, sex, marital status, pregnancy status, caregiving responsibilities, race, religion, language ability, disability and mental health conditions. (Section 5, Section 6, Section 7 and Section 8). Until its commencement, employers should continue to follow the Tripartite Guidelines on Fair Employment Practices. Read our blog Compliance Guide for Singapore’s Workplace Fairness Act for more details on the Workplace Fairness Act.

Compliance takeaways for Employers

• Formulate remuneration processes under which salary and other compensation decisions such as, performance and promotion are based on objective criteria such as role, skills, experience, qualifications, performance and responsibilities, rather than gender.

• Implement a grievance redressal mechanism through which employees can raise their concerns and have them addressed promptly.

• Evaluate employment contracts and flexible working arrangements to ensure there is no bias between employees working part-time, remotely or under flexible arrangements.

• Train HR and People Management teams to identify and prevent unconscious gender bias.

• Set salary bands for each role level and ensure employees are placed within those ranges based on documented criteria.

• Conduct periodic gender pay audits to compare remuneration data of male and female employees performing similar or comparable roles to identify unexplained pay differences.

• Create Key Responsibility Areas (KRAs) of employees and check if the employees delivering the same work are paid at par irrespective of gender.

• Have policies such as flexible working arrangements and caregiving leave to bring about work-life balance.

Conclusion

International Equal Pay Day reinforces the message that pay equity cannot be a once-a-year compliance check but is an ongoing organisational responsibility. Employers must continue to monitor, review and adapt their policies and practices to ensure equal remuneration and non-discriminatory employment practices stay ingrained within an organisation’s ecosystem.

[1] https://www.ilo.org/resource/news/what-18-september-equal-pay-day

Authored by: Swapna Umakanth & Antara Dasgupta

Researched by: Malaika Bajaj

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