Women in their 20s can expect to be paid 5% less than men, according to the latest published figures. By the time they reach their 30s and 40s, the gap has widened substantially.
These are national statistics but from early April this year larger employers will have to publish their own figures on gender pay.
Since our previous insights which were published on 22 September and 23 June the regulations have now come in to force and what is required from employers is much clearer.
With any gender pay disparities more visible, employers may face growing pressure for equal pay, either by negotiation or through the courts.
Though full reports do not have to be published until April 2018, they must be based on the snapshot provided this year. Therefore, employers with 250 or more relevant staff should already be gathering and recording data, and remedying any discrepancies.
The data employers publish must include:
- overall gender pay gap figures
- the number of men and women in different pay bands.
The detail of producing this information is complex, with employers needing to understand small print about which workers and employees are included in the reporting, bonuses, median and mean rates, quartile pay bands, and the position of employees on family-related or sick leave.
Reporting of gender pay will increase transparency, but it is important to remember that disparities in gender pay do not necessarily amount to discrimination or breaches of equal pay rules.
Even so, employers whose reports reveal significant gender pay disparities could be vulnerable to a variety of consequences, in addition to claims for equal pay such as:
· reputational damage
· discontent among staff about pay practices
· problems with tendering for public-sector contracts.
At present, there are no sanctions planned for employers who do not publish their own figures on gender pay. Some employers may therefore be tempted not to publish, especially given the possible consequences described above.
However, employers who do not publish their figures could easily suffer similar consequences. After all, they will likely be suspected, by staff and external stakeholders alike, of having something to hide.
Far better to gather the data and prepare to comply with the reporting requirements. Employers concerned about possible pay disparities can then take advice on dealing with gaps, and any legal, employee relations or communication issues.