In the UK, organisations that employ 250 or more employees must report on their gender pay gaps annually. The gender pay gap report shows the difference between the average earnings of all male and female employees, which is expressed as a percentage of men’s earnings. The legislation requires employers to publish details of the gender pay gap for their organisation as it is in the pay period in which 5th April (the “snapshot” date) falls in each year.
If an organisation reports a gender pay gap, it does not mean women are paid less than men for doing the same job, but it does show that, on average, men occupy higher-paying roles than women.
Used to its full potential, gender pay gap reporting is a valuable tool for assessing levels of equality in the workplace, female and male participation, and how effectively talent is being maximised.