Definition
A legal requirement for large employers to publish data showing the difference in average pay between men and women in their organisation. The reports must include the mean and median gender pay gap in hourly pay, bonus pay gaps, and the proportion of men and women in each pay quartile.
UK Context
The Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 require employers with 250 or more employees to publish their gender pay gap data annually. Public sector employers report by 30 March and private sector by 4 April. Data is published on the government's gender pay gap service.
Best Practices
- Analyse the underlying causes of any gender pay gap and develop an action plan to address them
- Publish a supporting narrative alongside the statutory figures to provide context and explain your plans
- Review recruitment, promotion, and pay practices to identify and remove any systemic barriers
Frequently Asked Questions
What is the difference between the gender pay gap and equal pay?
Equal pay means paying men and women the same for the same or equivalent work, which has been a legal requirement since 1970. The gender pay gap is the overall difference in average pay across all roles, often driven by a lack of women in senior or higher-paid roles.
What data must be reported?
Employers must report six metrics: mean gender pay gap in hourly pay, median gender pay gap in hourly pay, mean bonus gender pay gap, median bonus gender pay gap, proportion of men and women receiving a bonus, and proportion of men and women in each pay quartile.