UN Women launches a self-assessment tool to measure the wage gap in companies

UN Women launches the “Diagnosis of Equal Remuneration” (DIR)¹ , a self-assessment tool so that each organization can measure, independently and without intermediaries, if it is applying the principle of "equal remuneration for work of equal value" or if, on the contrary, a gender pay gap of its workforce exists. The DIR tool, developed by UN Women with the support of the European Union within the framework of the “Win Win: Gender equality means good business” programme, was initially piloted with companies in Panama and Costa Rica. Subsequently, the program was presented in Argentina, Chile, Peru and Uruguay. The initiative also seeks to contribute to the implementation of the commitments of the Regional Champion for Latin America and the Caribbean of the Equal Pay International Coalition (EPIC).

The DIR tool, consisting of an Excel file and instructions to guide its use, is intended to be used by any employing organization which has a staff of workers and updated information on each of them for a reference period. The tool has been designed to be accessible, easy to use and completely free. It is available here for download.

Having a system of remuneration that respects the principle of equality, and a tool that help to measure it, presents multiple benefits for companies and organizations. On one hand, it improves workforce relations and contributes to creating a better work environment, while increasing productivity and contributing to attract and maintain talent. Additionally, the commitment of companies and organizations to equality improves their social image and is part of many social responsibility policies.

Equal pay is one of the pillars of gender equality and women´s empowerment that promote the Women´s Empowerment Principles (WEPs). The principles, created by UN Women and the Global Compact in 2010, provide a road map through which companies can analyze and adapt their policies and practices to advance gender equity and the empowerment of women acting within the company, in the value chain and in the community. The WEPs have been signed by more than 2200 companies around the world, including more than 500 companies from the Latin America and Caribbean region.