How is pay defined for the purposes of reporting an organisation's gender pay gap?

Under the draft Regulations that set out the gender pay gap reporting duty, employers must report the difference in pay (both mean and median) between their male and female employees. Pay is defined in the draft Regulations as including:

  • basic pay;
  • paid leave, maternity pay and sick pay;
  • area and other allowances;
  • shift premium pay; and
  • bonus pay.

In its consultation on mandatory gender pay gap reporting for public-sector employers, the Government has indicated that the Regulations will be amended to clarify that pay for employees on annual leave, sick leave and maternity, paternity, adoption and parental leave will be included unless the employee is receiving less than his or her normal pay due to being on leave.

Pay will not include:

  • overtime pay;
  • expenses;
  • the value of salary-sacrifice schemes;
  • benefits in kind;
  • redundancy pay;
  • arrears of pay; and
  • tax credits.