I'm not sure if I have a complete understanding of your situation, but you mentioned the other guy isn't local. Perhaps the extra $8 going towards that guy's incremental expenses because he doesn't have a regular place to live, cook etc. like you do? As far as issue related to pay inequity goes, it's a bitter truth that you'll find it almost everywhere (at some level or the other). It's not a big surprise why HR folks ask you to keep your pay confidential. :) I think sometimes it's not a question of what others are getting, but it's more of am I getting what was was mutually agreed upon? If you think you deserve more, better have a strong justification for it rather than just saying my peers are getting more that I am. You always have the option of finding another different job if you don't like it.