The deadline for UK businesses to calculate report on their gender pay gaps, is fast approaching. So, in the spirit of helping you get your organisation up to speed, we take a look at what Gender Pay Gap reporting is, and what you need to do to keep your business compliant.

2018 was the first year that the rule came into force. “Data submitted by the deadline showed men were paid more than women in 7,795 out of 10,016 companies and public bodies in Britain, based on the median hourly pay.

The figures also showed that no sector paid women better on average than men. The construction sector had the worst average median gender pay gap at 25%. Finance and insurance were next, at 22%. The accommodation and food services sector had the best pay gap, at 1%.” – The Guardian

Does Gender Pay Gap reporting apply to my business?

Private, public and voluntary-sector businesses with 250 or more employees have to report their performance on pay equality, clearly showing how large the pay gap is between their male and female employees.  Typical reporting may show, for example, that on average women earn 5% less per hour than men, or that men earn 10% more in bonuses per year, than their female counterparts.

Public enterprises must submit their reports by 30 March 2019, while private companies have until 4 April 2019 to do so. Organisations are also required to publish the breakdown of men and women in different pay quartiles and details of the proportion of men and women in the company who receive bonuses.

ACAS has published detailed guidance required to help you determine whether the requirements apply to your business.

What type of data do I need to submit?

Relevant business will need to calculate and publish the following sets of data:

  • Their mean gender pay gap
  • Their median gender pay gap
  • Their mean bonus gender pay gap
  • Their median bonus gender pay gap
  • The proportion of men who receive a bonus payment
  • The proportion of women who receive a bonus payment
  • The proportion of men and women in each quartile pay band

Understanding how to calculate this data, the Government has published advice and tips about how best to calculate these figures, and most good HR systems will be able to record and capture the data you need to be able to accurately submit your own reports.

What if my business is smaller than 250? Will I need to submit a report?

Although the current reporting requirements only apply to organisations with 250 employees and more, in August 2018, the parliamentary Business, Energy and Industry Strategy (BEIS) committee called for gender pay gap reporting to be extended to companies with more than 50 employees. That, however, has not been implemented as yet.

Where do I need to publish the results?

“The results must be published on the employer’s website and a government website. They must, where applicable, be confirmed in a written statement by an appropriate person, such as a chief executive. Employers have the option to provide a narrative with their calculations. This should generally explain the reasons for the results and give details about actions that are being taken to reduce or eliminate the gender pay gap.” – ACAS.

 

 

For more information about the Gender Pay Gap Reporting deadline, visit the British Government’s website.