Gender pay gap reporting – what’s involved?
The gender pay gap has attracted much attention from the press in recent months. As the deadline for the first gender pay gap report fast approaches, are you aware of your reporting requirements and do you have the right information to hand?
The Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 sets out requirements for ‘relevant employers’, with 250 or more employees, to publish information about their employees pay by gender to highlight discrepancies between the average earnings of men and women.
By bringing this information into the spotlight, it is hoped that employers will look at how they can reduce or eliminate the gender pay gap.
By the annual ‘snapshot’ date of 4 April (or 30 March for public sector employers), starting in 2018, each relevant employer must provide required information from the previous 12 months. Relevant employees are outlined in the Equality Act 2010 and generally include those with a contract of employment, an apprenticeship or a contract to personally work for the employer (freelancers or contractors).
Required information includes:
- average gender pay gap as a mean average
- average gender pay gap as a median average
- average bonus gender pay gap as a mean average
- average bonus gender pay gap as a median average
- proportion of males and of females receiving a bonus payment
- proportion of males and of females falling into each of four pay groups, ordered from lowest to highest pay.
Employers have the option to include narrative with their calculations which can explain the reasons for the results and state any actions that are being taken to reduce or eliminate their pay gap.
Publicising the findings
Information provided will be published on a government website, and employers must make a more detailed report available on their company’s own website.
There is no doubt that it is good practice to make efforts to actively reduce the gender pay gap for your organisation.
For employers with less than 250 employees, it is possible to voluntarily report. The benefit of this is that it can act as an equal pay audit to highlight and address any differences in pay. But it also demonstrates a commitment to transparency for current and potential employees, as well your customers, as a fair and honest place to work.
Whether you are required to report or wish to voluntarily report, as your payroll provider, WMT can help generate and submit the numbers you need for your gender pay gap reporting.
For help and advice with payroll and your gender pay gap reporting contact Susan Elsdon