From 6 April 2017, private and charity sector employers with over 250 employees will be required to publish their workforce’s pay and bonuses on 5 April 2017 (and each anniversary date going forward). The employer must take a ‘snapshot’ of the pay and bonuses on that date and they then have twelve months to calculate their Gender Pay Gap (GPG) figures, publish them on their own website and also submit a report of their findings to the Government by 4 April 2018. Although now mandatory for all employers with over 250 staff, it is advisable for smaller employers to consider compiling and/or publishing this data, both to anticipate future roll-outs of this scheme to smaller employers, and as a matter of good employee relations.
The GPG report must show:
- The mean and median gender pay gap between men and for women
- The mean and median bonus pay gap between men and women (calculated over a 12 month period)
- The proportion of male and female employees who received a bonus
- Distribution of pay for men and women in each pay quartile
A wider definition (from the Equality Act 2010) of who counts as an employee is used when calculating the figures. This means that workers are included, as well as some self-employed people. Agency workers are included but counted by the agency providing them.
Employers are given the option of providing 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.
Many employers are already implementing steps to reduce any pay gaps that exist, and it is hoped that this process will result in many businesses becoming engaged in the process of eliminating gender pay gaps.