Gender Pay Gap Update
As you may be aware from our previous article; Mind the Gender Pay Gap, larger employers will be required to report on their gender pay and gender bonus pay gaps. The legislation requiring this is due to come in to force in April 2017.
The results must be published on your company website, as well as a government site, making it public knowledge. You will be given 12 months to publish this information. If you employ 250 or more employees, there are some key points to take into account:
- You must comply with the regulations for any year where your ‘headcount’ is 250 or more employees on 5 April.
- This applies to employees, but agency workers are included. However, they are counted by the agency providing them.
- Currently, these regulations apply to the private and voluntary sectors. However, the government is looking to include the public sector by April 2017 as well.
- Gender pay reporting is a different to carrying out an equal pay audit.
- There are six calculations to be done, which need to go on your website within 12 months. These have to be confirmed by an appropriate person, such as a chief executive.
- You will have the option to provide an explanation with your calculations and will be expected to clarify the reasons for the results, as well as provide details as to what actions you are taking, or planning to take, to reduce or eradicate the gender pay gap altogether.
So what calculations do you need to carry out?
There are six key calculations you need to show. They are the:
- average gender pay gap as a mean average;
- average gender pay gap as a median average;
- average bonus gender pay gap as a mean average;
- average bonus gender pay gap as a median average;
- proportion of males receiving a bonus payment and proportion of females receiving a bonus payment; and
- proportion of males and females when divided into four groups ordered from lowest to highest pay.
What Does this Mean to You?
If you are a company with 250 or more employees, this will affect you. Talk to Tollers for more information. We are HeRe for you.