In 2017, the Government introduced legislation that made it a statutory obligation for organisations with 250 or more employees to report annually on their gender pay gap.
The information which must be published is:
- The mean and median hourly pay for male and female employees
- The gaps between the mean and median hourly pay for male and female employees
- The proportion of male and female employees who received a bonus in the year prior to the reporting date
- The proportion of male and female employees in each quartile pay band
In considering the gender pay gap it is important to understand how this differs from Equal Pay. The Equality and Human Rights Commission outlines this distinction as follows:
- Equal pay means that men and women in the same employment performing equal work must receive equal pay, as set out in the Equality Act 2010.
- The gender pay gap is a measure of the difference between male and female average earnings across and organisation and it is expressed as a percentage of male earnings.
Whilst unequal pay is unlawful, a gender pay gap is not. This is because the causes of the gender pay gap are varied and overlapping and many are outside the control of individual employers.