Pay equity refers to the principle that individuals should receive equal pay for work of equal value, regardless of gender, race, or other characteristics. This concept aims to eliminate wage disparities that can arise from discrimination or systemic biases in the workplace. Ensuring pay equity helps create a fairer work environment and promotes economic justice. To achieve pay equity, organizations often conduct pay audits to assess their compensation practices. These audits help identify any gaps in pay between different groups of employees, such as women and men or minorities and non-minorities. Addressing these gaps can lead to improved employee morale and retention.