08 Nov 2017

A reminder on Gender pay gap reporting

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The Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 came into force in April 2017 and the first reports under the new Regulations are already being published on the Government website. The deadline for publication of those reports is 4 April 2018.

What can we learn from the data so far?

To date, just over 100 employers have published their gender pay gap figures – the Government estimates that around 9,000 employers will be subject to the reporting obligation, so we have some way to go before we see the full picture.

However, there are certain trends that can be observed, as follows:

  • All of the employers who have reported to date have a gender pay gap – but there is a very small minority who have a reverse pay gap (i.e. women are paid more than men).
  • Many of the disparities – both in relation to pay and bonus gaps – are explained by structure, with higher salaries and bonuses paid to employees in more senior roles which are held disproportionately by men. Part time working also has an impact in relation to bonus pay.
  • As anticipated, the quartile figures indicate that men are more highly represented in the highest earning quartile, while women are more highly represented in the lowest.
  • Most (but by no means all) of the employers who have reported so far have included a narrative alongside their bare statistics. Many have sought to explain their pay gap, for example by highlighting issues such as gender imbalance in the particular industry or by explaining that there are currently more men than women in senior roles. Often these explanations are supported by information about steps the employer is taking to address the issues – such as reviewing remuneration policies and procedures, implementing return to work and flexible working programmes and supporting external initiatives to improve women's participation in the workplace.

What next?

If they haven't already done so, employers should be taking steps to prepare their reports and consider what they may include in the accompanying narrative (if anything).

Download our summary guide to the key issues arising for employers

 

 
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Purvis Ghani

Purvis Ghani
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Beth Hale

Beth Hale
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