The Regulations setting out the requirements for large private
and voluntary sector employers (those with 250 or more employees)
to provide an annual report on the gender pay gap within their
organisation are expected to come into force this April. These
statutory requirements come on the back of a series of initiatives
and consultations on how best to look to bridge the ongoing gap
between the wages of men and women in the workplace. With the most
recent Office for National Statistics figures showing that there
remains a gap of 9.4% for full-time employees.
Employers affected by these changes will be required to publish
figures for the mean and median hourly pay of their female
employees as compared to their male employees. These figures will,
in turn, be required to be broken down into quartiles to illustrate
the extent of the gap at different salary levels in the
Pay will include basic pay, any paid leave, allowances, shift
premiums and bonus payments. It will not include any overtime pay,
expenses, payments under salary sacrifice schemes and benefits in
kind. Bonus payments will include payments received and earned in
relation to profit sharing, productivity, performance and other
bonus or incentive pay, piecework and commission.
In addition, such organisations will be required to provide
information about men and women's mean bonus payments over a 12
month period and the proportion of male and female employees who
receive a bonus during that period; the same definition of bonus
payments will be applied.
Organisations will be monitored and those not complying with the
requirement to publish such information may end up being named and
Breaking this down, the reports published by relevant
organisations will need to include:
The difference in mean pay between male and female
The difference in median pay between male and female
The difference in mean bonus pay between male and female
The proportion of male and female employees who receive a bonus
during that period;
The numbers of male and female employees employed by the
organisation on the prescribed date in quartile pay bands.
Those within the organisation charged with working out the mean
and median pay of employees are likely to need to dust off their
old maths textbooks with particular care having to be taken to
ensure that the raw data on the salaries and bonuses of employees
is accurate and lends itself to analysis for these purposes.
Organisations will need to publish their report on their website
and submit a copy to the Government annually.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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