Share your experiences or a private tip with our journalists, email, The FT uses the median measure, or the middle of the distribution, as a measure of average pay because it most accurately reflects the experience of most employees. The gender pay gap impacts women’s ability to pay off student loan debt.David McNew/Getty Images Student loans . The gender pay gap is the percentage difference between average hourly earnings for men and women. (a)a month is treated as having 30.44 days; (b)a year is treated as having 365.25 days. What actions should employers take prior to publication? 9. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area. More details on who is captured can be found in our Gender Pay Gap Regulations summary. The data show that women in the public sector fared worse than those in private companies, with the public sector pay gap increasing slightly from 16 per cent in 2018 to 16.7 per cent this year. (b)for a period of at least three years beginning with the date of publication. Divide the amount found under Step 5 by the number of working hours in a week for that employee (see regulation 7). We can also provide assurance over any analysis that companies undertake themselves. The text also states that complaints relating to gender pay gaps can be made to the Workplace Relations Commission. Monzo said its staff had more than trebled over the reporting period, from 90 to more than 300, with some women joining the bank in senior positions, and several being promoted. You might find this hard to believe. The Regulations require that qualifying employers analyse their pay data, gathered on 5 April each year (the “Snapshot Date”) and publish a report setting out their findings within 12 months. (b)remuneration referable to redundancy or termination of employment. At Mercer, we believe in building brighter futures. A surprising number of employers - 21 of 389 - report a mean pay gap of zero (of these 19 also report a median pay gap of zero). (a)includes hours when an employee is available, and required to be available, at or near a place of work for the purposes of working unless the employee is at home, and. This includes both ordinary pay and bonus pay for the relevant pay period. We have significant experience in carrying out equal pay reviews and have worked with clients across a wide variety of industries in this area. An Impact Assessment allows those with an interest in the policy area to understand: Use this menu to access essential accompanying documents and information for this legislation item. remuneration referable to redundancy or termination of employment. Employers are required to publish information on their gender pay gap and gender bonus gap on an annual basis. There are amendments to section 208, not relevant here. According to the ONS’s latest Annual Survey of Hours and Earnings (ASHE), the gender pay gap for median gross hourly earnings fell to 8.6% among full-time employees in … They apply regardless of whether the regulation originates from a domestic or international source and can accompany primary (Acts etc) and secondary legislation (SIs). Follow us @WFEmploymentLaw @WilliamFryLaw, Catherine O'Flynn An average of the mean hourly rate of pay reported is 11.05% lower for women, The average of mean bonus payments reported is 15.61% lower for women, The difference between mean hourly pay for men and women, The difference between median hourly pay for men and women. Employers will be required to publish gender pay gap information on an annual basis. Additional analysis on workforce profile to support the explanation of the gap in those terms is also likely to be helpful. the employer does not have, and it is not reasonably practicable for the employer to obtain, the data. They are contracted to work 35 hours per week. Victoria Atkins, minister for women, told parliament on Thursday that while most companies will not see a “dramatic reduction” in their gender pay gaps this year, “progress is being made”. (c)a firm, or an entity of a similar character, formed under the law of a country outside the United Kingdom. The most comprehensive research on women in the workplace, Fill out the form below and receive regular updates on the Gender Pay Gap Reporting Regulations, £3,166.68 x “appropriate multiplier” of 0.22996 (7/number of days in pay period; that is, 30.44) =, £728.21/number of working hours = £728.21/35 =, Statement of Corporate Governance Arrangements, Allowances (fire warden, location, car, recruitment and retention allowances), Redundancy or termination payments, or in lieu of leave, Measured by reference to the actual bonus pay received at the time tax is due, Includes any bonus paid in the 12-month period ending on the relevant 5 April. (2) Subject to paragraph (6), where an employee has normal working hours that do not differ from week to week or over a longer period, the number of working hours in a week for a relevant employee is the number of the normal working hours in a week for that employee under the employee’s contract of employment, or terms of employment, in force on the snapshot date. (5) The considerations referred to in paragraph (3)(b) are—, (a)the average number of working hours in a week which the employee could expect under the employee’s contract of employment, or terms of employment; and. BONUS PAY PROPORTION - Bonus pay proportion refers to male relevant employees who received a bonus in the 12 months, expressed as a percentage of the male relevant employees; female relevant employees who received a bonus in the 12 months, expressed as a percentage of the female relevant employees. 2005 c. 5. First, a slight caveat: the analysis below uses the data available as of 17 December 2017, new reports are slowly being added and the precise figures are likely to become outdated quickly. For reporting, ‘Pay’ and ‘Bonus’ have very specific definitions which employers will be required to use. Opens in a new window. (3) In this regulation, “partnership” means—. Where? 16.—(1) The Secretary of State must from time to time—. There were some important changes to enforcement of the gender pay gap reporting regulations for the 2019/20 reporting year (which used a snapshot date of either 31 March 2019 or 5 April 2019). In accordance with section 208(4), (5)(b) and (8) of the Equality Act 2010(2), a draft of this instrument was laid before Parliament and approved by a resolution of each House of Parliament. Determine the hourly rate of pay for each male and female full-pay relevant employee and then rank those employees in order from lowest paid to highest paid. Discover further resources and information on gender pay reporting at the CIPD’s dedicated site. We expect this to be a useful tool for employers to take the sting out of ostensibly negative statistics. The CIPD’s Gender Pay Gap Conference on 8 March will explore what happens once you’ve reported, and the tools that can fix gender pay gaps in the longer term. Employers will be required to take a first data snapshot in April 2017 which should be analysed and published on a date of their choosing but by no later than April 2018. We'd like to hear from you. Get a peek at what Mercer business leaders and thought experts think. Regulation 15 explains that the information required by regulation 2 must be published on the employer’s own website for at least 3 years from the date of publication, and must also be published on a website designated by the Secretary of State. All rights reserved. What else needs to be done? Base pay and bonus will be required to be reported separately. As of August 2018, 4 months after the specified deadline of 4 April 2018, 100% of UK employers who were required to publish a gender pay gap report had done so. the average number of working hours in a week which the employee could expect under the employee’s contract of employment, or terms of employment; and. Under current rules employers are not required to provide details of how they will address the gender pay issue. This is a list of non-adjusted pay gaps (median earnings of full-time employees) according to the OECD (2008). Policymakers hoped the transparency would shame large employers into taking swift action to narrow the difference between what they pay men and women. Pay is reported as both ordinary pay and bonus pay. Reputational damage and negative publicity. There will be no civil penalties for non-compliance although the government is keeping this under review. (c)remuneration referable to redundancy or termination of employment. The Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 (the “Regulations”) came into effect on 6 April 2017. (a)is in the form of money, vouchers, securities, securities options, or interests in securities. For the purposes of these Regulations, ‘employment’ is defined in section 83 of the Equality Act 2010, and includes employment under a contract of employment, a contract of apprenticeship or a contract personally to do work.