Do you know the difference between Pay Gap and Equal Pay ?
The government enacted legislation which requires private and third sector organisations employing over 250 workers to publish information showing whether they have a pay gap between male and female employees.
Following two consultations setting out plans for gender pay gap reporting, one in the public sector the other in the private and voluntary sectors, the government published the final draft of the Gender Pay Gap Information Regulations 2017. The regulations will be effective from the 6 April 2017, following Parliament approval by resolution.
Equal pay means that men and women are paid the same for doing the same job. The pay gap can be caused by unequal pay, where, for example, women get paid less than men for the same job, but there are other factors. Equal Pay Day is the day in the year, typically 10 November, when women in the UK stop earning, relative to men.
A recent Trailblazing Transparency publication Mending the Gap, states that there are more women in the workforce than ever before (14.7 million) and that in cash terms their salaries are rising. There are more women on FTSE Boards than ever before – 26.1%. However, 60% of employees in the lowest pay quartile are women and 60% of employees in the highest pay quartile are men (Trailblazing Transparency – Mending the Gap). Women are more likely to be in lower paid roles, either within a company or in different sectors. This causes a gap between the average amount a man is paid, and the average amount a women is paid. This difference is called ‘the pay gap’. Organisations that have fair, legal and equal pay practices may still have a pay gap due to the representation of men and women in different grades or levels.