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EHRC outlines new gender pay reporting proposals

The Equality and Human Rights Commission (EHRC) has published its proposals for employers reporting gender pay gaps (on the EHRC website).

The watchdog has outlined the voluntary measures organisations with more than 250 employees can use to publish information on pay differentials between men and women. These measures include:
  • the single figure difference between the median hourly earnings of men and women
  • the difference between the average basic pay and total average earnings of men and women by grade and job type
  • the difference between men's and women's average starting salaries.
The EHRC is also offering employers an option to include a narrative of the causes of their organisation's gender pay gap. This narrative would have to be combined with one or more of the quantitative measures.

As an incentive to companies to adopt these reporting measures, the EHRC is offering a limited degree of immunity from investigation for firms that participate.

According to official statistics, the gender pay gap for full-time employees is 12.2%, with the gap markedly wider in the private sector.

Despite being involved in the consultation process, the CBI has decided not to back the proposals. Katja Hall, the group's director of employment policy, says: "There is no disagreement about the need to address the lack of women in higher-paid jobs, but there is a disagreement about what will actually work, and what will backfire.

"The publication of average salary figures for men and women, which could be made compulsory under the terms of the Equality Bill, could be misleading. People could think that women are paid less than men in the same role, which is rightly illegal, when differences will actually reflect the proportions of men and women in higher-paid jobs."

The EHRC says it will produce guidance on these measures for employers in April 2010.

For companies looking at conducting a gender pay audit the XpertHR job pricing service powered by Celre is a good place to start.

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Mike Berry | |

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