Multilevel modelling techniques are applied to a dataset that matches ®rms and workers, to pinpoint and explain contrasts among company wage policies. Results indicate that wage dierences across ®rms are statistically signi®cant, aecting every parameter of the pay policy (returns to schooling, tenure, experience, the penalty imposed on newly hired workers and on women). Gross labour productivity, average schooling in the ®rm, ®rm size and economic sector are relevant forces shaping the contrast between employers' pay policies.