By Ben Smith - 21 December 2017
As the year draws to a close, we take a look back at one of the biggest employment law changes of 2017: gender pay gap reporting. As some employers are choosing to release their pay gap data early we can already see some trends emerging.
The Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 (the “Regulations”) came into effect on 6 April 2017. They apply to employers in the private and voluntary sectors who have 250 or more employees on 5 April each year. Public sector organisations are covered by Equality Act 2010 (Specific Duties and Public Authorities) Regulations 2017, which are substantively very similar to the Regulations.
The Regulations require that qualifying employers analyse their pay data, gathered on 5 April each year (the “Snapshot Date”) and publish a report setting out their findings within 12 months. As the first Snapshot Date was 5 April 2017, the first reports are therefore due by 4 April 2018. Qualifying employers must publish the following data:
Employers can supplement their data with an optional narrative which might explain the reason for any pay gaps and set out any steps the employer is taking to challenge their pay gap. We expect this to be a useful tool for employers to take the sting out of ostensibly negative statistics.
You can read GQ’s in-depth analysis of the Regulations here.
Data Gender pay data released so far
As of 17 December 2017, only 389 of the estimated 9,000 qualifying employers have uploaded their data to the government website. This small sample means we cannot draw firm conclusions – and the data is easily skewed by a few extreme outliers, such as one employer reporting a 467% bonus pay gap - but already we can see trends emerging. First, a slight caveat: the analysis below uses the data available as of 17 December 2017, new reports are slowly being added and the precise figures are likely to become outdated quickly. However, the broad trends they reveal are unlikely to alter significantly.
An average of the mean hourly rate of pay reported is 11.05% lower for women
The average of mean bonus payments reported is 15.61% lower for women
Gender representation in pay quartiles
No pay gap at all?