Gender Pay Gap Reporting

Essential background

To accelerate progress to close the gender pay gap, and promote gender equality, the government passed ground breaking legislation in 2017 that introduced mandatory reporting of gender pay gap data.

The legislation requires all employers with 250 or more employees to publish specific figures about their gender pay gap annually. The deadline for the first year of reporting is:

- 4 April 2018 for private and voluntary sector organisations
- 30 March 2018 for public sector organisations

The calculations

The metrics that employers will have to report are:

  • The mean gender pay gap, which reflects an employers’ full earning range
  • The median gender pay gap, as it is the best representation of the ‘typical’ difference in earnings
  • The proportions of male and female employees that received a bonus, because bonuses can make up a large proportion of someone’s overall earnings and this shows whether they are being allocated fairly.
  • The mean bonus gender pay gap
  • The median bonus gender pay gap
  • The proportions of men and women working in each pay quartile; this will show if there are barriers to women’s upwards progression within an organisation and can help inform succession planning.

What to do with the data

Employers must publish their data on their own website, and on the government’s online reporting service. Employers must register their organisation on the government’s online reporting service at www.gov.uk/report-gender-pay-gap-data.

The accuracy of these figures must be signed off by an appropriate senior figure within the organisation, such as a CEO, partner, director or equivalent. The appropriate person will depend on the type of employer.

Narratives

Employers are also strongly encouraged to publish a narrative or action plan alongside their data. This can be a helpful tool to explain the context of their figures and set out the steps they are taking to close their gender pay gap.

Examples of gender pay gap reports and narratives can be seen on the government’s website at:  https://gender-pay-gap.service.gov.uk/Viewing/search-results

Gender pay gap vs Equal pay

One of the most common misconceptions regarding the gender pay gap is to confuse it with equal pay. Equal pay is about men and women who carry out the same work, similar work or work of equal value being paid the same. It’s been unlawful to pay men and women differently for over 45 years; whereas the gender pay gap shows the difference between the average hourly earnings of all the men and all the women within a workforce. Currently, the national gender pay gap is 18.4%.

Guidance

The following links may be useful for employers in scope of the regulations:

If organisations are unsure whether they need to report, they should refer to the following guidance - https://www.gov.uk/guidance/gender-pay-gap-who-needs-to-report.  If they are not in scope they will need to inform us by completing this online form -  https://gender-pay-gap.service.gov.uk/scope/out

Nearly all employers will have a gender pay gap this year. The key next step is to take action to address it. Consider setting yourself three priority actions and have your senior leadership commit to these and monitor your progress to keep up with your peers.

The Government toolkit above is for employers looking for advice on how to address their gender pay gap and sets out a number of actions employers can take to improve gender equality in their workplace.