Equal pay analysis - promoting equal pay in companies

The Gender Equality Act was enacted in the 1990s with the aim of eliminating discrimination in the workplace on the basis of gender. In order to achieve equal pay, it has now been supplemented by the obligation to prepare an equal pay analysis.

Who is affected and when?

Since July 1, 2020, all employers have been obliged to carry out an internal gender pay gap analysis as soon as they employ 100 or more employees (number of employees excluding apprentices) at the beginning of the year. Their workload is not relevant here. The legal employer of a temporary employee is the temporary employment agency, which is why they are to be included in the equal pay analysis of the temporary employment agency and not the temporary employment agency. The employers concerned include all the usual forms, from natural persons and legal entities to partnerships and the public sector.

What needs to be done and by when?

The employers concerned must carry out an equal pay analysis based on a scientific and legally compliant method. This involves analyzing whether there are pay differences that cannot be explained by objective reasons such as education, age, function, years of service, etc. The analysis must be carried out for the first time between July 1, 2020 and June 30, 2021 or when the threshold of 100 employees is exceeded.

The result must then be audited by an independent and qualified body within one year, but no later than June 30, 2022. Affected employers can award this contract to

a qualified auditing company,
an employee representative body in accordance with the Employee Participation Act, or
an organization that promotes equality between women and men in accordance with its statutes or protects the interests of employees and has been in existence for at least two years.

Once the review has been completed, employers must inform their employees and shareholders of the results of the analysis within one year, at the latest by June 30, 2023.

If the equal pay analysis confirms that equal pay is complied with, the employer is exempted from the further analysis obligation. This is therefore only a one-off exercise for the employer. If this is not the case, a further two analyses may be required, each at intervals of 4 years, until the law repeals itself after 12 years (on July 1, 2032 through this so-called sunset clause).

What aids are available?

To carry out the analysis, we recommend the Logib analysis tool provided free of charge by the federal government. In addition to being free of charge, this option has the advantage that the Federal Office for Gender Equality (FOGE) issues a declaration of conformity. This ensures that the requirements for scientific and legal conformity of the analysis are met.

Our expert support

We are at your disposal for a competent examination of the equal pay analysis. You benefit from the following aspects:

We are a licensed auditing company within the meaning of the Auditor Oversight Act (RAG) and are therefore authorized to carry out such audits
Our lead auditors are licensed auditing experts and have the mandatory training for equal pay analyses
A sound knowledge of the legal basis and the current scientific and legally compliant methods is guaranteed