News

Gender pay gap reporting regulations come into effect

6th April 2017

Thousands of employers will publish their gender pay gap figures for the first time from today, helping break the glass ceiling and create a more modern workforce.

The UK is one of the first countries in the world to require gender pay gap reporting and follows the government’s commitment to introduce the requirements at the last election. This is a key part of the government’s work to eliminate the gender pay gap.

Voluntary, private and public sector employers with 250 or more employees will be required to publish their figures by April 2018. The regulations will cover approximately 9,000 employers with over 15 million employees, representing nearly half of the UK’s workforce.

The UK gender pay gap stands at 18.1 per cent. These requirements will help employers to identify the gaps in their organisations and take action to close their gender pay gap.

Minister for Women and Equalities Justine Greening said:

We have more women in work, more women-led businesses than ever before and the highest proportion of women on the boards of our biggest companies. This has helped us to narrow the gender pay gap to a record 18.1 per cent – but we want to eliminate it completely.

Helping women to reach their full potential isn’t only the right thing to do, it makes good economic sense and is good for British business. I am proud that the UK is championing gender equality and now those employers that are leading the way will clearly stand out with these requirements.

The benefits of helping women to unlock their talents are huge – eliminating work-related gender gaps could add £150 billion to our annual GDP by 2025. That is an opportunity that neither Government nor businesses can afford to ignore.”

For more on the new regulations go to Gender Pay Gap Reporting.

The Government is working with leading employers who are exploring publishing their figures early.

The Government Equalities Office has also launched its new campaign page where employers can access resources and case studies. It is also the site where they will publish their gender pay gap figures.

The new gender pay gap mandatory reporting requirements are part of wider work the Government is doing to support women in the workplace. This includes £5 million to increase returnships, offering 30 hours of free childcare, and introducing shared parental leave and new rights to request flexible working. There is also extensive cross-Government work to get more women into the top jobs at the UK’s biggest companies and to get more girls taking STEM subjects at school.

 

CIPD issues guide to gender pay gap reporting

30th March 2017

The CIPD has published detailed guidance to help employers in the UK comply with the new reporting requirements, but is also calling on organisations all over the world to go over and above what’s required by publishing a transparent narrative about the factors contributing to their gender pay gap and what they’re doing to address it.

Peter Cheese, the CIPD’s Chief Executive, said in his introduction to the latest issue of People Management magazine, that being transparent about the reasons for any gender pay gaps is the key to closing those gaps over time. The CIPD has published its own gender pay gap in its annual report since 2015, and has pledged to publish a more detailed narrative about the reasons for the gap, and how it plans to address them, in this year’s report. The professional body is encouraging other organisations to do the same, whether the new requirements apply to them or not.

What you need to do
  • Read the CIPD’s guidance for more information on how to calculate the gender pay gap reporting figures and what your calculations need to take into account.
  • Then talk to your payroll software provider to see how much of this analysis they can do for you. Larger organisations should consider creating a team with the right skills to analyse and communicate the findings.
  • When publishing your figures, provide a short explanatory note, or narrative, to set your pay gap figures into context and highlight any action you’ve taken or plan to take to close any significant gaps. This is not compulsory but will reduce the reputational risks around publishing your gender pay gap and will contribute to painting a bigger picture about the factors contributing to the UK’s gender pay gap.
  • Gender pay information must be published on your own website, as well as on a dedicated government website (currently under development). The deadline for publishing gender pay gap information is 30 March 2018 for public sector organisations, and 4 April 2018 for those in the private and voluntary sectors. All organisations must then report new data every year thereafter. If your headcount drops below 250 in any given year, you are encouraged to continue publishing gender pay gap information on a voluntary basis.

Last updated 6th April 2017