6th June 2017
New gender pay reporting regulations came into force in April 2017 – here’s what you need to know.
Since the 6th April 2017, it has been the law that employers with 250 employees or more must publish calculations that show the pay gap between their male and female employees.
Gender pay reporting is different to equal pay, as equal pay looks at the differences between men and women who do the same job and how this is reflected in their pay. Gender pay reporting considers all men and women, and highlights discrimination based solely on gender.
These payroll calculations must be published on the employer’s website, as well as on a government site, so that they are fully accessible by the public. This ensures that information on the gender pay gap can be reached by customers, employees and any potential candidates, as well as demonstrating the company’s transparency on this topic.
Businesses have up to 12 months to publish this information, starting from the 6th April 2017. Compliance is required from businesses who have 250 or more employees on the 5th April for private and voluntary sectors, and 31st March for the public sector. However, the advantages that this transparency will bring are worth considering for smaller companies too.
A survey conducted by Totaljobs uncovered that “82% of companies are not reviewing their gender equality/equal pay policy”. This is despite the introduction of The Equality Act 2010, which highlights the continuing issue regarding the gender pay gap. New regulations in force since April 2017 aim to directly combat this continuing trend.
What do new gender payroll regulations mean for businesses?
These new Gender Payroll Regulations mean that within 12 months of the start date, companies with 250 or more employees must have published six calculations to their website and a government site. These calculations are:
- The average gender pay gap as a mean average.
- The average gender pay gap as a median average.
- The average bonus gender pay gap as a mean average.
- The average bonus gender pay gap as a median average.
- The proportion of male employees receiving a bonus payment and the proportion of female employees receiving a bonus payment.
- The proportion of male and female employees when divided into four groups order from lowest to highest pay.
Alongside these calculations, a written statement confirming these figures should be released by an appropriate individual, such as a Chief Executive, Director etc. A narrative can also be provided with these calculations, if desired. This can include specifications on any circumstances that may have led to the figures as they are, and any action being taken to address and adjust the figures.
What do employers need to do?
As an employer, it’s your responsibility to have clear and consistent records concerning the pay of your employees. These need to show salary information across roles and genders in order to provide effective reports. Not only do you need to report on the salaries of you employees, according to their gender, but you also need to consider any bonuses that may have been paid out, including how much and to whom. This information is also required under the new gender payroll regulations.
If you’re unsure about the new gender payroll regulations, speak to your payroll provider. One of the benefits of using an external provider is that they specialise in knowing the latest compliance changes. They are about to give you any advice you may need.