Gender Pay Gap Reporting

Understanding gender pay gap reporting regulations

The gender pay gap reporting regulations came into effect in April 2017¹, and require organisations in England, Scotland and Wales with more than 250 employees to calculate and publish the pay gap between male and female employees on an annual basis. The regulations apply to private and public sector employers.

The gender pay gap is the difference in average pay between the men and women in your workforce. Although it relates to pay equality, there is a difference between the gender pay gap and equal pay. Equal pay means that men and women working in identical or similar jobs receive the same remuneration.

Your gender pay gap data should be uploaded to the UK government’s dedicated website on or before the deadline each year, and made available on your organisation’s website.

Gender pay gap calculations and reporting

Gender pay gap calculations are based on employer payroll data drawn from a specific date each year, called the ‘snapshot date’.

To calculate the gender pay gap in an organisation we use a straightforward and cost-effective solution. It quickly calculates the required reporting information from your payroll or HR system, helping to ensure your meet gender pay gap reporting regulations.

We will prepare your report, including mean and median gender pay rate comparisons, bonus participation and earnings comparison, career paths and earnings. As well covering all that is required to publish your report, this service also includes a high-level narrative to explain our findings and flag potential issues, as well as a year-over-year comparison summary.

Addressing the underlying causes of a gender pay gap

Gender pay gap statistics suggest there is still a long way to go to address the gap between men and women. Many organisations are now focusing on the longer-term goal of diversity and inclusion in their gender pay reporting.

For those who want to explore the root causes and seek to address them, we offer our Gender Pay Gap Reporting Premium Service using deep-dive analysis to allow you to review pay differentials through metrics such as age, job level, department, job tenure and length of service. This enables us to produce a comprehensive assessment of your policies and highlight areas of focus and opportunity for reducing future gender pay gap distortions.

Support from a Gallagher specialist

Our reward consultants are here to help you to meet your gender pay gap obligations in the first instance but we can support you with so much more. We can work with you to build data-driven plans to narrow the gap, and assist with your broader analyses and messaging so you can evidence an authentic, forward-looking action plan.

1. https://www.gov.uk/government/collections/gender-pay-gap-reporting