Gender pay reporting update
25 September 2018
Government ministers have confirmed that they do not intend to change the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 in the next five years. This is despite numerous recommendations from the Business, Energy and Industrial Strategy Committee (BEIS) of the House of Commons, which were published in its report on 2 August 2018.
The BEIS Committee had recommended extending gender pay reporting to all companies with 50 or more staff as well as obliging partnerships to include partners’ pay in their reporting. While this latter change may become the de facto standard for partnerships keen to present a positive image of their firm, it now seems that this will not become a legal requirement for some years.
Reporting April 2018 figures
With no reporting changes on the horizon, attention will now focus on what progress individual organisations are making on reducing their gender pay gap and how they compare to other organisations in their sector.
There are a number of considerations when performing this analysis, but the suggested starting point, for any organisation reporting a wider gender pay gap than their competitors, is to check whether the ratios have been calculated in line with the legislation. Our experience tells us that there are some fundamental/common errors made by organisations when conducting their calculations and that the actual pay gap may, in reality, differ from the published figures.
Read more on the 10 most commons errors organisations make in their gender pay calculations.
If you would like assistance with checking your gender pay gap calculations, performing additional analysis to identify the root cause of your gap, or advice on potential changes which could be made to reward policies to help reduce the gap, please get in touch with your usual BDO contact or David Gardner.
Employer Essentials Index