Employers to Begin Mandatory Reporting of Gender Pay Gap Information for the First Time

The Gender Pay Gap Information Act 2021 (“the Act”) came into force on 31^st May 2022. The Act amends the Employment Equality Act 1998 and aims to ensure greater transparency regarding differences in the remuneration of employees by reference to gender.

In order to achieve this, the Act requires employers to:

• publish an annual report identifying any gender pay gaps within their organisation; and
• publish a ‘relevant report’ explaining the reasons for such a pay gap and identifying steps it can take to reduce or eliminate it

The Employment Equality Act 1998 (Section 20A) (Gender Pay Gap Information) Regulations 2022 (“the Regulations”) were published on 3^rd June 2022, however they also came into force on 31^st May 2022. They set out details of how to do the various calculations and compile the information that employers need to publish.  Due to the complexity of the calculations and processes involved the Government has also published a guidance note to assist employers, most recently updated on 28^th June 2022 (link below).

What is the Gender Pay Gap?

The gender pay gap is the difference in the average hourly wage of men and women across a workforce. It compares the pay of all working men and women; not just those in similar jobs, with similar working patterns or similar qualifications or experience. Often hourly earnings may be the same on the face of it, but other benefits may be afforded to men that are not afforded to women and such differences are also taken into consideration in calculating the gender pay gap of an organisation.

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