What are objective pay criteria?
Objective pay criteria are predefined, gender-neutral criteria used to determine pay. These may include factors such as job responsibility, experience, performance or specialised expertise.
Their purpose is to ensure that pay decisions are not based on personal judgement or individual negotiations, but are made according to the same principles for all employees.
Why are objective pay criteria important?
One of the key elements of a pay-transparent system is that the criteria used as the basis for pay decisions are documented and applied consistently.
Objective criteria help reduce the risks associated with subjective decision-making, support more transparent operations and contribute to the development of justifiable pay practices.
How do they relate to pay transparency?
One of the fundamental principles of pay transparency is that employers should be able to explain the reasoning behind pay decisions when required. This requires clearly defined and documented criteria.
Objective pay criteria are therefore closely linked to salary bands, classification systems and job structures.
Official definition
Objective pay criteria are predefined, gender-neutral criteria on the basis of which pay can be determined and justified.
Frequently asked questions
What does an objective pay criterion mean?
It refers to a predefined criterion that an employer applies consistently when making pay decisions.
What factors can be considered objective pay criteria?
For example experience, performance, job responsibility or specialised expertise.
Why is a documented pay system important?
Because it helps ensure transparent, consistent and justifiable pay decisions.
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