Gender Pay Gap

It is calculated on the mean and often the median hourly pay of all men against all women, and some laws also require figures for bonuses and for the share of each gender in pay quartiles. Because it compares everyone, it reflects who holds which roles, such as more women in lower-paid or part-time posts and fewer in senior ones, as well as any pay differences within the same role. Several countries, including the UK and members of the EU, require employers above a size threshold to report or publish it, and EU rules also call for pay transparency. Pay equity, by contrast, is the like-for-like comparison of men and women in comparable jobs. Human resources, legal and finance teams calculate and explain the numbers. Reading the figure alongside role mix and pay-grade data shows whether the cause is pay-setting, promotion or working patterns, which calls for different fixes.

An employer with 2,000 staff reports a median hourly pay gap of 14%. Analysis shows men and women are paid similarly in the same grade, but women hold few of the top-grade roles and most of the part-time posts. The company responds with a review of promotion routes, flexible working at senior level and a target to narrow the gap.