What is gender pay gap reporting? Gender pay gap reporting from April 2017

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From April 2017, new rules on gender pay reporting come into effect. The biggest companies will have to publish their gender pay gap. What is gender pay gap reporting?

Q. What is gender pay gap reporting?

A. Gender pay gap reporting is something that companies and charities employing 250 or more people will have to do from April 2017. It applies to companies and charities that employ 250 or more people on April 5th and public sector organisations that employ 250 or more people on March 31st. This is called the snapshot date. It will be the same date every year.

Employers must publish information about their gender pay gap, the gender pay gap for bonuses and the percentage of women and men who get a bonus.

Companies should also provide an explanation of why their gender pay gap exists and what they plan to do to close it.

Q. Why do we need a gender pay gap report?

A. Figures show that the gender pay gap does still exist. While there may be a number of reasons why women are paid less on average, than men, there’s a fair amount of evidence that women are paid less – from time to time – for doing the same or similar jobs. For example, government figures show that female financial managers and directors earn 32.4% less than their male colleagues, on average.Women also end up doing a disproportionate amount of low paid jobs. Or, put another way, jobs that women do may end up being low paid.

Q. When do companies have to publish the information by?

A. Companies have up to 12 months from April 5th 2017 to publish their gender pay gap.

Q. What exactly do they have to publish?

A. Companies have to publish six pieces of information. They must publish:

  •  Their mean gender pay gap in hourly pay. This is the difference between the average of men’s and women’s pay.
  • Their median gender pay gap in hourly pay. This is the difference in the midpoint between men’s and women’s pay.
  • The mean bonus gender gap. This is the difference between the average bonus that men received and the average that women received.
  • The median bonus gender gap. This is the difference in the midpoint between men’s and women’s bonuses.
  • The percentage of women and men receiving a bonus. In this case, the bonus period is the 12 months leading up to the snapshot date.
  • The percentage of women and men in each pay quartile – namely, the percentage of men and women in the top 25% of earnings, the next 25% and so on.

SAVVY TIP: There’s a useful explanation of how to do the calculations for gender pay gap reporting on the Gov.uk website.

Q. Where do companies have to publish this?

A. It must be published ‘somewhere accessible’ on the company’s own website. It will also have to be published on the Gov.uk website.

Q. Are part-time workers included in the threshold of 250 employees?

A. Yes, part-time workers are treated the same as full-time employees.

Q.  What’s the difference between an equal pay audit and gender pay gap reporting?

A. An equal pay audit is designed to show whether or not a company is paying women and men the same rate for the same or a similar job. Gender pay gap reporting shows the difference in pay for women and men across an organisation.

Useful links:

To learn more about gender pay gap reporting, go to the ACAS website section on gender pay gap.

There’s also guidance on how to publish the gender pay gap on the ACAS website.

Related articles:

The gender pay gap – what is it and what’s changing?

Leading Women in Finance: Jayne-Anne Gadhia, CEO, Virgin Money

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