BrightPay Blog


Apr 2017

12

Employers Must Publish Their Gender Pay Gap Differences

The Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 for private and voluntary-sector employers comes into effect at the start of the new tax year. With that, large companies (i.e. those with over 250 employees) will legally have to reveal the gender pay gap in their workforce. Thousands of employers will begin recording their gender pay gap figures for the first time and must publish their results before the end of the tax year.

At 18.1%, the difference between the average pay for men and women is at an all time low. The new legislation hopes to drastically reduce the gap. Experts are suggesting that these reporting provisions will likely do more for pay equality than equal pay legislation has done in decades. The government are hoping that by exposing company’s pay disparities they will be forced to take action and eliminate gender pay gaps, arguing that it could increase annual GDP by £150 billion.

Unfortunately, the 18.1% pay gap does not show the differences in the rate of pay for comparable jobs. The Office for National Statistics has provided an interactive tool to discover the gender pay gap for your job. According to the government the reasons for gender inequality are complex and can include:

  • more women work in lower paid jobs or sectors.
  • women are more likely to work part-time, which can mean a lower rate of pay.
  • Under representation of women in senior roles. This may be due to stereotypical attitudes about gender roles, lack of flexible working or women taking time to look after their family.

The Equality and Human Rights Commission will enforce the following rule where: Companies who employ more than 250 people must provide data about their pay gap, the proportion of male and female employees in different pay bands, a breakdown of how many women and men get a bonus and their gender bonus gap. This legislation applies to over 9,000 companies, with over 15 million employees.

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Posted byAdam KeenaninEmployee RecordsEmployment Update