Gender pay gap reporting becomes law

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Employers with more than 250 staff are now required by law to report gender pay gaps, following the introduction of new legislation.

Employers must publish the following figures by April 2018:

  • their median gender pay gap – difference between midpoints in the ranges of men’s and women’s pay
  • their mean gender pay gap – difference between the average of men’s and women’s pay
  • the proportion of men and women in each quartile of the pay structure
  • the proportion of men and women receiving bonuses and the mean and median pay gap for bonuses.

The requirements will allow employers to identify the gaps within their business and take action to close any gender pay gap.

According to government figures, the UK gender pay gap is at a record low of 18.1%. The government estimates that eliminating the gap could add £150 billion to annual GDP by 2025.

Reporting your figures

There are 3steps to gender pay gap reporting:

Gathering payroll data

You will need data on employees, their full pay and bonuses to calculate your figures. Figures are based on a specific date each year which the government calls a ‘snapshot date’. For public sector organisations this is 31 March and 5 April for businesses and charities.

Calculating figures

Gender pay gap needs to be calculated in hourly pay. We can advise on how to do this.

Publishing data

Figures must be published on your website and the government’s website within a year of your organisation’s snapshot date.

Businesses and charities have to publish a written statement signed by an ‘appropriate person’. The definition of an appropriate person varies according to the type of employer. For a corporate body (other than limited liability partnership) this is a director or equivalent.

Talk to us about your payroll and reporting obligations. Contact Sue Stephens.