What is gender pay gap reporting?
According to ACAS, the gender pay gap can be defined as;
"......the difference in average earnings between women and men".
It's important to note that it's not the same as equal pay. Equal pay refers to the difference in pay between men and women who do the same work. Gender pay gaps, as above, look at the differences in average pay gaps between men and women. Pay gap reporting provides data that organisations can systematically review leading to them addressing any gaps. Pay gaps can be seen as indicators of potential diversity and inclusion problems within organisations and as such it's important to address them promptly.
What do gender pay gap reports look like?
A quick Google search will allow you to see gender pay gap data published by other companies, there are a few examples here;
Humberside Fire and Rescue Service https://humbersidefire.gov.uk/about-us/how-we-are-equal-and-inclusive/gender-pay-gap-report-2022-2023
Queen Mary University of London https://hr.qmul.ac.uk/media/hr/edi/Queen-Mary-University-of-London,-Gender-and-Ethnicity-Pay-Gap-Report-2022.pdf
Why do I have to report on the gender pay gap in my business?
The Equality Act 2010 (Gender Pay Gap Information) Regulations came took effect on 6 April 2017. The regulations mean that employers with 250 or more employees are required to publish the difference between male and female pay, based on data on an annual “snapshot” date (31 March for public sector organisations and 5 April for private sector firms).
When do you need to report by?
In 2023, the gender pay gap reporting deadline for public sector employers is 30 March 2023, while private sector employers have until 4 April to submit their reports.
How do I calculate my figures?
We're awful with maths but you can have a look at this link from the Equality and Human Rights Commission which provides more information on how to calculate your data: https://www.equalityhumanrights.com/en/advice-and-guidance/step-2-how-calculate-your-gender-pay-gap-figures
There are 6 key figures that need to be included within your gender pay gap data:
percentage of men and women in each hourly pay quarter
mean (average) gender pay gap using hourly pay
median gender pay gap using hourly pay
percentage of men and women receiving bonus pay
mean (average) gender pay gap using bonus pay
median gender pay gap using bonus pay
What happens if I don't report?
It's a legal requirement that you publish gender pay gap data if you have 250 employees or more. You can find out more about who needs to report here. If you don't comply you could be subject to court action and you may be named and shamed by the Equality and Human Rights Commission. You can see more about the penalties for not complying with this obligation on the Equality and Human Rights Commission website here: https://www.equalityhumanrights.com/en/pay-gaps/gender-pay-gap-our-enforcement-action
How do I get my data ready?
Most good payroll and HR systems will have built-in functionality to collate gender pay gap data. Speak to your Finance/ Payroll/ HR department about whether they already have a plan for collating your data.
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Useful Information
Government Guidance https://www.gov.uk/government/publications/gender-pay-gap-reporting-guidance-for-employers
Equality and Human Rights Commission https://www.equalityhumanrights.com/en/advice-and-guidance/gender-pay-gap-reporting
CIPD Guide https://www.cipd.co.uk/knowledge/fundamentals/relations/gender-pay-gap-reporting/guide#gref
Inclusive employers https://www.inclusiveemployers.co.uk/blog/pay-gap-reporting-and-why-its-important-to-id/
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Disclaimer
All information within the post is provided for guidance only; always seek your own legal advice.
The information with this post was correct at the time of publishing, March 2023 but may be subject to change.
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