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

Under the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 (SI 2017/172), employers must report the difference in pay (both mean and median) between their male and female employees. The gender pay gap figures must account for ordinary pay and bonuses paid in the relevant pay period. Bonus pay that relates to a longer period, eg an annual bonus, should be pro rated to reflect the length of the pay period (employers must also separately report the differences in mean and median bonus pay between their male and female employees).

Ordinary pay is defined in the draft Regulations as:

  • basic pay;
  • allowances;
  • pay for piecework;
  • pay for leave; and
  • shift premium pay.

Sick pay, and pay for employees on maternity, paternity, adoption, parental or shared parental leave should not be included if the employee is receiving less than their normal pay due to being on leave.

Ordinary pay does not include:

  • overtime pay;
  • redundancy pay or other pay referable to termination;
  • pay in lieu of leave;
  • remuneration provided otherwise than in money (eg benefits in kind and benefits under a salary-sacrifice scheme);
  • expenses; or
  • arrears of pay.