Gender Pay Gap

Date Published: 15-03-2018

The Gender Pay Gap is currently a major focus across the UK, as the government have introduced compulsory reporting on the Gender Pay Gap to public and private organisations with 250 or more employees, by April 2018.

 

With an estimated 9,000 firms required to publish their pay data on the Government website in under a month, Cooper Lomaz have compiled a guide to what Gender Pay Gap Reporting is, who it affects, how to submit your data, and what happens if you don’t.

 

What is the Gender Pay Gap?

The Gender Pay Gap is the percentage difference between the average hourly earnings between men and women, with the percentage expressed as a proportion of men’s earnings. For example, “women earn X% more/less than men per hour”.

 

The Office for National Statistics (ONS) first started reporting on the Gender Pay Gap in 1997, when the overall median percentage (for full and part-time workers) was at 27.5%, but the gap has closed by almost 50%, with the difference in pay between males and females at 18.4% ten years on.

 

A recent East Anglia Salary Survey and Recruitment Trends report published by Cooper Lomaz has also found that the overall median percentage is 20.7% for the region.

 

Who does the Gender Pay Gap Reporting affect?

The Gender Pay Gap Reporting will affect all public bodies and privately owned companies that have 250 or more employees throughout Great Britain, with the exception of Northern Ireland.

 

These organisations are required to:

  • Submit their data to the government website by Friday 30th March 2018 if they are within the public sector, or Wednesday 4th April 2018 for businesses and charities.
  • Publish their findings relating to the Gender Pay Gap and a written statement confirming accuracy of the data available to be viewed by the public on their own website.

 

Organisations comprising of fewer employees are not obligated to report, but are still able to submit and publish their data voluntarily.

 

What happens if you don’t?

Whilst there are currently no consequences for having a Gender Pay Gap, employers may be punished for failing to publish their data.

 

The Equality and Human Rights Commission (EHRC) are responsible for ensuring that organisations publish their information by the given deadlines, and failure to comply with the instructions, or even providing false or inaccurate data, could lead to “unlimited fines and convictions”.

 

Currently, there are no regulations relating to the Gender Pay Gap report, however the UK government has stated that it will also publish sector-specific league tables, highlighting companies failing to address pay differences between men and women.

How do you report your data?

The Gender Pay Gap data can be reported to the government via this link, and must also be published on the organisation’s own website accompanied by a written statement confirming accuracy of the calculations.

 

The data you report to the Government website, and the data you publish on your website must include:

  • Mean and median Gender Pay Gap in hourly pay
  • Mean and median bonus Gender Pay Gap
  • Proportion of males and females receiving a bonus payment
  • Proportion of males and females in each pay quartile

 

The “mean” figure is the difference between the average of men’s and women’s pay, while the “median” figure is the difference between the midpoints in the ranges of men’s and women’s pay. For further advice, the government website provides full instructions and advice on calculating these figures.