Based on the data of China’s A-share listed companies from 2007 to 2020, this paper studies the impact of enterprise digital transformation on employee compensation and its internal mechanism. The research found that the digital transformation of enterprises increased the total remuneration, the number of employees and the average remuneration of employees, improved the external fairness of employees’ remuneration, but increased the internal unfairness of employees’ remuneration. The mechanism test found that the digital transformation improved the performance of the enterprise, and the share of rent shared by employees in the enterprise increased, which led to an increase in the total remuneration of employees; Compared with the reduced low skilled employees, the digital transformation of enterprises has added more high skilled employees, thus increasing the total number of employees; Compared with the total number of employees, the marginal contribution of digital transformation to the total remuneration of employees is greater, which in turn increases the average remuneration of employees; By virtue of the power they control, senior executives have grabbed more share of rent sharing, expanded the pay gap between employees and senior executives, and increased the internal unfairness of employees’ pay; Digital transformation balances the market rent of different enterprises in the industry through technology spillover, reduces the pay gap between enterprises and employees in the industry, and improves the external fairness of employees’ pay.