According to Equity Theory, employees feel inequity only when other people receive higher salaries than they do.

Equity theory states that employees feel inequity when they perceive that their inputs (e.g. time, effort, skills) are not fairly compensated compared to the inputs and outputs (e.g. salary, benefits, recognition) of others in similar positions. The comparison is not limited to just salary, but rather takes into account a range of inputs and outputs. Salary is just one factor that can contribute to perceptions of inequity.