An employee's assessment of the fairness of his or her compensation based on how much pay they receive is referred to as procedural fairness.

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In any situation where rewards are distributed, employees appear to assess fairness along two dimensions: distributive and procedural. Distributive fairness is based on how much the employees receive and procedural fairness is based on what process was used to decide how much the pay should be.

An Employee's Assessment of the Fairness of His or Her