Gender Pay Gap Reporting – What Is It And Who Will It Affect?

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The government defines the gender pay gap on their official site as “the difference between the average earnings of men and women” that is stated “relative to men’s earnings”. The government provides an example to illustrate this, which is that “men earn 15 percent more than women, per hour”.

It is crucial to note however, that although the government has clearly defined what the gender pay gap is, the concept of a gender pay gap is still something that is undergoing fierce debate in the public realm, both by individuals and companies.

What Is The Gender Pay Gap Report?

The Gender Pay Gap Report is a mandatory requirement for relevant businesses to publish and report specific numbers about the gender pay gap in their company, from 2017 onwards.

Under the new rules, employers must do two crucial things:

  • They must publish their gender pay gap data along with a written statement on their public-facing website.
  • They must also report their gender pay gap data to the government via an online system they have created specifically for this purpose. Below, we have provided the specific details that relevant companies will have to provide both on their public facing website and via the government system (outlined above), as part of the gender pay gap report;
    • The mean gender pay gap, provided in the format of hourly pay.
    • The median gender pay gap, provided in the format of hourly pay.
    • The mean gender pay gap of bonuses.
    • The median gender pay gap of bonuses.
    • The proportion of both men and women that are receiving a bonus payment.
    • The proportion of men and women that are in each pay quartile.

To provide the above information in an accurate and timely manner, relevant companies will need to; gather specific information from their payroll and use the information that is gathered to make their calculations. Relevant companies will then need to publish a written statement on their public-facing company website, which confirms that their calculations are accurate.

It is important to note that “The Equality and Human Rights Commission” can take action against relevant companies that do not properly adhere to the new rules.

Who Will The New Gender Pay Gap Report Affect?

The new rules are mandatory for businesses with 250 employees and over in England, Scotland or Wales. However, if a company has less than 250 workers then it can still publish their own gender pay gap report voluntarily, but it does not have to.

When completing the report, it is important for companies to remember that every part time worker counts as one employee, and if a company is utilising “job share arrangements”, then every employee within a job share counts as one separate employee.

Additionally, if a company has employees that have more than one job/role within the company, then they must either choose to count them by how many employment contracts they have or just count them as one employee.

Further, if a company has employees working oversees they must be included when completing the report if they have an employment contract that is subject to English, Scottish or Welsh law.

If relevant companies are running multiple payrolls (e.g. payrolls for different company departments), then they must accurately merge the relevant data from all of their payrolls and report one set of concise figures.

Finally, relevant companies that are part of a larger “group” must report their data on an individual basis. And corporate “groups” can choose to report combined figures for their “complete group” if they want to, but this is not mandatory.

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