16 March 2017
Are You Ready to Report on Gender Pay?
Large companies are required to report their gender pay and bonus pay gaps from April 2017, as the Government seeks to establish fair rates and improve gender equality across society.
The Government has made gender pay gap reporting mandatory for all larger employers in order to increase transparency over where gaps exist in the labour market.
From 5 April 2017, all employers with legal entities in the UK that employ 250 or more employees must report against six reporting requirements:
1. The difference between mean pay of men and women
2. The difference between the median pay of men and women
3. The difference between the mean bonus pay of men and women
4. The proportion of men and women who receive bonus pay
5. The proportion of men and women in each pay band.
Employers also have the option to publish a supporting narrative explaining their gender pay and bonus pay gaps on a voluntary basis.
Employers are required to collect a first ‘snapshot’ of the data on which they will report on 5 April 2017. They then have a maximum of one year to report the data in line with statutory requirements. Therefore, employers must provide their first report by no later than 4 April 2018.
This annual cycle of data collection and reporting will continue with employers required to publish the data on their website for at least three years. The data will need to be accompanied by a written statement of accuracy signed by a director within the organisation.
Employers are also required to publish their data on a designated Government website which is likely to be used to compare the gender pay gap by sector or region.
The Confederation of British Industry (CBI) has published a guide to gender pay gap reporting, which provides helpful information about how to calculate your organisation’s gender pay and bonus pay gaps.