Understanding UK Gender Pay Gap Reporting

It’s that time again where a statutory deadline is approaching. Have you heard of Gender Pay Gap Reporting? Read on to see if your business needs to take action.

What is Gender Pay Gap Reporting?

Introduced in 2017, Gender Pay Gap Reporting is a legal requirement in the UK for large employers to publish data on the difference on average pay between male and female employees.

According to the Office for National Statistics, (ONS), the Gender Pay Gap for all recorded UK employees was 13.1% as at October 2024, down from 14.2% in April 2023.

The aim is to narrow and eventually eliminate the pay differentials between the genders.

Who is required to report?

An employer with a headcount of 250 or more on a specific date (the ‘snapshot’ date) must report their data. Usually, employees on the payroll are included, but agency workers and Partners who receive a share of profit are excluded. Different rules apply in terms of inclusion in the headcount, but excluded in the Gender Pay Gap calculations.

Where to find more information?

More detailed guidance can be found here: Gender pay gap reporting: guidance for employers – GOV.UK

Key Dates: Snapshot and reporting deadlines

‘Snapshot’ date?

The snapshot date is the date on which the calculations are based on:

• 31st March for most public authority employers
• 5th April for private, voluntary and all other public authority employers

Reporting deadline

The reporting must be completed twelve months after the snapshot date:

• 30 March for most public authority employers
• 4 April for private, voluntary and all other public authority employers
  

Essential reporting details

Three key calculations must be completed and reported to the government via the Gender Pay Gap Service:

1. mean and median gender pay gap for hourly pay and bonus pay
2. percentage of men and women in each hourly pay quarter
3. percentage of men and women receiving bonus pay

Employers must also publish information on their own website or intranet, let employees know and keep it online for 3 years.

Additional considerations for compliance

• Employers in the private or voluntary sector need a written statement to confirm the information submitted is accurate and signed by an appropriate person
• All employers need a supporting narrative to help people understand why there is a gap and what action you have taken to analyse and close the gap
• All employers need an action plan to understand the reasons for the gap, know what actions will be taken to close the gap and track if it is working

What if my headcount has dropped below 250?

You need to sign into the Gender Pay Gap Service, before the reporting deadline to select the organisation and choose “out of scope” option under reporting requirements.

What if you fail to report?

It is against the law to fail to report information by the deadline. It is up to each employer or connected group to review and decide if the reporting applies. The Equality and Human Rights Commission (EHRC) could take enforcement action if the report is not submitted on time or has inaccurate data, leading to court orders and fines. A ‘late badge’ will show on the gender pay gap service if you fail to report and publish your data for any year you had to.

Get in Touch

Rayner Essex can support you with all your payroll requirements. For clients that we already provide payroll services to, we can extract the raw data from the payroll using the appropriate snapshot date. We will work with you to identify which employees and pay elements to include within the data to ensure accuracy in your Gender Pay Gap reporting.

Once the data is extracted, it will be securely provided, so that you can begin the analysis and complete the necessary calculations with confidence. Alternatively, our payroll team can manage the entire analysis process, providing detailed calculations and reports for your review.

Regardless of your headcount, you may want to assess whether a pay gap exists within your organisation, enabling you to and manage gender equality.

If you have any questions or require further support relating to Gender Pay Gap reporting or other payroll requirements, please contact us. Our payroll experts are here to assist you every step of the way in managing your payroll and compliance needs efficiently.