NEWS

Gender Pay Gap - New Reporting Rules

New legislation comes into force today (6 April 2017) requiring all voluntary, private and public sector employers with 250 or more employees to annually publish their gender pay gap figures.  The government says these new requirements will help employers to identify the gaps in their organisation and take action to close them.  The UK’s current pay gap is at 18.1%.

An employer must comply with the regulations for any year where they have a ‘headcount’ of 250 or more employees n 5 April (for the private and voluntary sector) and 31 March (for the public sector).  However, employers of all sizes should consider the advantages.

The reporting requires employers to carry out six calculations showing their

1. Average gender pay gap as a mean average
2. Average gender pay gap as a median average
3. Average bonus gender pay gap as a mean average
4. Average bonus gender pay gap as a median average
5. Proportion of males receiving a bonus payment and proportion of females receiving a bonus payment
6. Proportion of males and females when divided into four groups ordered from lowest to highest pay

Employers must publish their results on their website and the new Gender Pay Gap government website within 12 months.  Where appropriate they must be confirmed by an appropriate person eg a chief executive.

There is also the option to provide a narrative with the calculations for employers to explain the reasons for the results and give details about actions that are being taken to reduce or eliminate the gender pay gap.

Morris Crocker has its own inhouse payroll bureau.  If you employ staff and would like more details of our services please contact Martin Southern mjs@morriscrocker.co.uk or call 023 9248 4356.

For companies affected by the new rules or those considering the advantages of gender pay gap reporting we can review your policies and payroll procedures, help with the calculations and ensure compliancy.

06/04/2017