Kate Palmer, HR Advice and Consultancy Director at Peninsula, explains what employers need to know about gender pay gap reporting.

What is the gender pay gap?

The gender pay gap is the difference in the average hourly earnings (excluding overtime) between men and women. Usually felt by women, it has been a significant cause for concern for decades. And while it shows signs of closing, the gap remains a symbol of inequality between the sexes.

What is gender pay gap reporting?

To address this, the government introduced an obligation on employers with at least 250 members of staff to publish data on the salary of their male and female employees annually – a ‘snapshot’ of their gender pay data.

During the coronavirus outbreak, the Government Equalities Office (GEO) and the Equality and Human Rights Commission (EHRC) relaxed enforcement of the gender pay gap deadlines, however, the system is now back to normal and affected employers should ensure that they stick to original deadlines.

What needs to be included in a gender pay gap report?

Government guidelines say that gender pay gap reports should:

• focus on the ‘snapshot’ date of 5 April each year in the private sector
• focus on the ‘snapshot’ date of 31 March each year in the public sector
• not include employees in the ‘reporting pool’ if they were not on full pay on the ‘snapshot’ date.

Employers should take up the opportunity of creating a narrative to accompany their report where there is a pay gap. Having a pay gap does not necessarily mean that there is an equal pay issue in an organisation so employers should use the narrative to point to factors contributing to their results. Creating a realistic action plan to address any gap is also advised because this will show a commitment to eradicating barriers to equality.

About the author

Kate Palmer is HR Advice and Consultancy Director at global employment law consultancy at Peninsula.

See also

Employment law: what to expect in 2023

Find out more

Gender pay gap reporting (GOV.UK)

Images

Getty Images

Publication updated

23 October 2024

Any opinion expressed in this article is that of the author and the author alone, and does not necessarily represent that of The Gazette.