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Gender Pay Gap Update: April 2018

Gender Pay Gap – The Facts

The gender pay gap is defined as the average difference between men’s and women’s aggregate hourly earnings. In 2016 this stood at 9.4% for full-time employees and a staggering 18.1% for all workers. It’s not just an issue that affects UK workers, but as a nation we have a massive problem to address: the World Economic Forum’s Gender Pay Gap Index has the UK in 20th place.

The new reporting regulations apply to both public and private sector organisations with 250 or more employees. It is estimated that this will affect around 9,000 employers and account for nearly half of the UK workforce.

The gender pay gap shouldn’t be confused with equal pay. Equal pay is already a legal requirement to ensure that anyone, regardless of their gender, age, ethnicity or ability is paid the same amount to do the same job.

The gender pay gap is concerned with the differences in the average pay between men and women over a period of time no matter what their role is. Equal pay deals with the pay differences between men and women who carry out the same or similar jobs. Organisations who have a higher level of men in senior jobs and women in junior roles are more likely to have a gender pay gap.

Gender Pay Gap Reporting – Employers’ Duties

Under the new regulations, employers must publish the following information:

  • The difference between male and female employees’ mean average hourly rate of pay.
  • The difference between male and female employees’ median average hourly rate of pay.
  • The difference between male and female employees’ mean bonus pay.
  • The difference between male and female employees’ median bonus pay.
  • The proportions of male and female employees who were paid a bonus.
  • The proportions of male and female employees in each quartile of the pay structure.

From 5th April 2018, all firms with 250 or more employees must publish gender pay information (and repeated each year). For public sectors, this was on the 30th March 2018, repeated every four years. The report must be published on the company’s website and accessible to employees and the public for 3 years. This should also be uploaded to a government website, along with an optional narrative.

A Director must sign a statement to say the report is accurate.

Gender Pay Gap – In the News

There has been a lot in the news about gender pay differences.  Back in September, accountancy firm Deloitte reported that the hourly pay gap between men and women was narrowing by just two and a half pence a year, suggesting it will take until 2069 for the pay gap to close.

In March we heard that Iceland is planning to become the first country to require companies with more than 25 employees to prove they offer equal pay (based on gender or any other demographic). Also, in March, the charity Fawcett Society produced a report that showed that in some ethnic groups (Caribbean and white Irish), the gender pay gap was actually reversed, with women earning on average more than men.

So, What’s Next?

The Gender Pay Reporting Regulations are exactly what they say they are: as things stand they only serve to make public the information about how differing rates of average pay for men and women. There is no legal requirement to ensure that the median levels of pay are equal, although it’s fair to say many businesses may feel shamed into a moral obligation. There is also a risk that claims of discrimination may increase if the reports highlight large pay gaps.

Park City Can Help

Park City can help you with your gender pay gap reporting.

If you are yet to publish your data, or you have but would like help, we will help with your calculations, or discuss steps to put in place to reduce any current pay gaps.

Even if you’re not required to disclose, we can help with any concerns you might have about equal pay within your organisation. Contact us about Gender Pay Gaps today.

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