Details of how large employers will have to report their gender pay and gender bonus pay gaps have been published today. The regulations, which have been developed in close partnership with businesses, set out how employers will be expected to collect and publish this data from next April. This data will help employers to see where they have further to go in attracting more women into their industry or to support them so that are not held back by caring responsibilities or gender stereotypes.
"After a complex period of consultation with employers, we are really pleased to see the gender pay gap reporting regulations now being debated in Parliament. Requiring employers with more than 250 employees to monitor, analyse and report on a wide range of data – median, mean and bonus pay gaps – will give one of the truest reflections of pay inequalities we could have asked for when consultation began.
"My hope is that transparent pay reporting will help to focus the minds of employers on occupational segregation and finally tackle the concentration of women in low-paid, traditionally under-valued roles – as employers will be able to see clearly where they are placing value through remuneration and explore why.
“Business in the Community continues to work with employers to get them ‘reporting ready’, and I look forward to seeing more of our members lead the way by reporting ahead of the implementation of the legislation, just as our Champion members, PwC and Deloitte have done.”
Kathryn Nawrockyi, Business in the Community Gender Equality Director
The regulations, which have been publically consulted on and will now be debated in Parliament, set out the proposed requirements for employers in the private and voluntary sectors to:
- Publish their median gender pay gap figures by identifying the wage of the middle earner, the median is the best representation of the 'typical' gender difference. Employers will be asked to use data from a ‘snapshot’ period in April to calculate this average.
- Publish their mean gender pay gap figures by taking into account the full earnings distribution, the mean look at both the low and high earners in an organisation – this is particularly useful as women are often over-represented at the low earning extreme and men are over-represented at the high earning extreme. As with the median gender pay gap, employers will use data from a ‘snapshot’ period in April.
- Publish the proportion of men & women in each quartile of the pay structure. This data will show the spread of male and female earners across an organisation, helping to show employers where women’s progress might be stalling so they can take action to support their career development.
- Publish the gender pay gaps for any bonuses paid out during the year as there is a significant issue around bonus payments in some sectors, employers will also have to publish the proportion of male and proportion of female employees that received a bonus during the year.
Find out the gender pay gap by occupation via new online tool.
A new online tool that allows the public to find out the gender pay gap for their occupation has been launched by the Minister for Women and Equalities, Justine Greening. The online tool, created by the government and the Office for National Statistics, shows construction and building trades, and financial managers and directors have the highest gender pay gaps.
The gender pay gap is now at a record low of 18.1 per cent and the online tool, through utilising statistics from the Annual Survey of Hours and Earnings will show the gender pay gap by profession, so that the public can see how their job measures up against the national average.
An online quiz has also been launched to work alongside the online toolkit, that is designed to enable people to challenge their knowledge of what the gender pay gap is for a variety of professions.