Gender Pay Gap Regulations
From April 6th 2017 businesses with over 250 employees with be required, under The Equality Act 2010 (Gender Pay Gap Information) Regulations, to publish specific information about the differences in pay between genders. According to the Fawcett Society, the gender pay gap for full-time workers currently stands at 13.9% in the UK, and at the current rate of progress, it will take over 50 years to close the gap.
What information needs to be published?
All employers with over 250 relevant employees are required to report
- Average gender pay gap as a mean average
- Average gender pay gap as a median average
- Average bonus gender pay gap as a mean average
- Average bonus gender pay gap as a median average
- Proportion of males receiving a bonus payment and proportion of females receiving a bonus payment
This data must be published on the employer’s website for at least 3 years, alongside being published on a designated government website.
How will gender pay gap reporting affect your business?
No matter what your data uncovers, the legislation has not been introduced so the government can bring any legal actions against a company that has a clear pay divide. It is worth clarifying that any data showing a gap between the earnings of male and female staff is not necessarily the same as an unlawful inequality of pay under the Equality Act 2010. The UK Government hopes that by increasing transparency around gender pay differences, organisations will be encouraged to take remedial action.
If the data demonstrates a large gap in pay between men and women clearly it has the potential to be both commercially and legally damaging for employers. This is not the aim of the Act.
The real hope is that this data will draw attention to the worst offending organisations by shining a light on the average pay gap across these businesses.
You may have seen in the Financial Times last month that Schroders published data about its gender pay gap. “It was revealed that that fixed pay for its female staff was 33 per cent less on average when compared with salaries for male employees at Europe’s second-largest listed asset manager. It also found bonuses for female staff were 66 per cent less on average than bonuses for male staff at the company.” – Financial Times
With issues like these being highlighted we will most likely see more of these shocking statistics over the next year to hopefully encourage the gap to close before the predicted date of 2067.