Gender Pay Gap reporting
On 22 February the Government issued the second consultation on gender pay gap reporting together with the draft of The Equality Act 2010 (Gender Pay Gap Information) Regulations 2016. The consultation period allowing everyone to comment on the draft regulations is open until 11 March 2016.
The proposed regulations will apply to large businesses employing at least 250 people in the private and voluntary sector in England, Scotland and Wales.
The Regulations will come into force on 1 October 2016 and to ensure that the employers are given sufficient time to prepare, the required information will only be required to be published 18 months later in April 2018. The first report will need to include data captured on 30 April 2017 and every subsequent annual report will use data from the anniversary of this date.
What information will employers have to publish?
- The Regulations will require employers to publish their overall mean and median gender pay gaps. To generate these figures employers will need to use employees’ hourly pay rate for. The “pay” will include all payments made to the employee such as a bonus, on-call allowance, sick pay, etc. but will exclude overtime pay, expenses, the value of salary sacrifice schemes, benefits in kind, redundancy pay and arrears of pay and tax credits.
- The Regulations will also require employers to publish the mean bonus payments paid to men and women. This will need to include the information on the proportion of male and female employees that receive a bonus.
- Lastly, employers will be required to report on the number of men and women in each quartile of their pay distribution. This will help employers consider where women are concentrated in terms of their remuneration and if there are any blockages to their progression.
Where should the information be published?
The required information must be published in English on the employer’s searchable website. This must be accessible to employees and the public. In addition, the information will also need to be uploaded to a government sponsored website. Information will need to be retained online for 3 years in order to show progress made.
Supporting guidance that will help employers with drafting the report will be published by the Government later in 2016.
If you would like assistance with the required calculations and producing the report please, please contact a member of our HR Solutions team or email your enquiry to us
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