Gender pay equity in public sector employment: An analysis of compensation disparities and overtime allocation across municipal departments

The public sector maintains official salary systems and equality policies yet women and men continue to experience pay differences when total compensation is evaluated. The research conducts a thorough examination of gender pay equity throughout a large municipal workforce by studying both base salary and overtime and longevity pay. The research uses administrative data from more than 10,000 employees spread across 42 departments to analyze compensation disparities through a theoretical framework that includes Human Capital Theory and Discrimination Theories and Institutional Theory and Gender Stratification.

The research shows that unequal overtime distribution creates more than 60% of the total pay difference between genders. The departmental level shows substantial differences because cultural elements together with structural aspects determine how equity outcomes develop. The departments that demonstrate strong equity performance provide practical examples which organizations can use to develop reform strategies.

The research demonstrates that meaningful gender pay equity in public sector organizations requires specific data-based interventions together with enhanced organizational responsibility. Note: This analysis is cross-sectional in design; therefore, the findings reflect associations rather than causal relationships, and longitudinal replication is recommended to establish causality. Public sector management and governance now prioritize gender pay equity because organizations need to achieve transparency and accountability standards while promoting diversity.

Public compensation systems maintain ongoing disparities between genders even though various jurisdictions have implemented policies to fight workplace discrimination and promote equality. Academic research primarily examines fixed wages while ignoring the complete compensation structure which includes overtime pay and longevity bonuses and other discretionary pay elements (Blau & Kahn, 2017). The restricted method produces underestimations of total pay inequality because supplemental pay components constitute substantial earnings in extensive bureaucratic systems.

The public sector provides a special environment with strict regulations to study gender pay equity. The compensation systems in government follow strict classification protocols and collective bargaining agreements which are thought to minimize bias. Research shows that pay disparities continue to exist between pay grades and within job roles because of unclear overtime distribution methods and shift scheduling and bonus distribution practices (Cha, 2013; Kim & Lamberton, 2024).

The differences in compensation levels create substantial effects on total pay which challenges official equality systems and damages public institution trust. The research adds value to existing literature through its complete compensation analysis which extends past base pay to study overtime and longevity pay throughout an entire municipal workforce. The research addresses current demands from management and policy scholarship to study how organizational structures and institutional incentives and workplace cultures affect pay equity outcomes (OECD, 2024; Kalev, 2009).