Mandatory UK gender pay reporting

The story so far.

Discover the full extent of pay differences between men and women in UK companies.

The first year of reporting - an overview

The 5th of April 2018 marks the end of the first year of disclosures under the new UK gender pay gap reporting requirements. Just over 10,000 companies employing more than 250 people in England, Scotland and Wales have disclosed their figures, although reportedly more than 1,500 are yet to publish and may face possible fines and reputational damage.

As the reporting period closes, we are able for the first time to get a detailed sense of the gender pay gap that sits within the UK’s key employers.

What do the 2018 gender pay disclosures tell us?

Woman sitting at a desk with a laptop.

The results are stark - with more than 85% of companies disclosing a mean pay gap, and 80% a mean bonus gap, in favour of men. Although the exact reason for this gap do vary by company, in the overwhelming number of cases the key factor appears to be the relatively high number of men in more senior (and so more highly paid) roles.

In this report, we explore the detail behind the headline statistics and the positive actions that companies are taking to improve their gap. With the first reporting deadline now behind us, we also look ahead to what companies should be doing now to prepare for the future.   

2017/2018 gender pay reporting - The key facts

Mean pay gap disclosure

  • 75% of companies who reported have a pay gap above 5% in favour of men
  • Over 85% of companies disclosed have a pay gap in favour of men. 75% of companies who reported have a pay gap above 5% in favour of men
  • Around 40% of companies disclosed have a mean pay gap above the ONS national average (17.4%)
  • Around 10% of companies disclosed have a pay gap above 30%

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Mean bonus pay gap disclosure

  • Around 55% of companies disclosed have a bonus gap above 30%
  • Bonus gaps are generally twice as high as pay gaps
  • Over 80% of companies disclosed have a bonus gap in favour of men
  • 75% of companies disclosed have a bonus gap above 10% in favour of men
  • Around 55% of companies disclosed have a bonus gap above 30%
  • More than 10% of companies disclosed have a bonus gap above 70%

 

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Pay gap and bonus gap

  • In over 80% of companies the mean bonus gap is the same direction as the mean pay gap (i.e. a positive pay gap and bonus gap or a negative pay gap and bonus gap).

 

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Two woman standing by an office glass wall.

Looking forward - Compliance in 2018/19 and beyond

So far, the Government’s focus has been on addressing non-compliance with the new reporting requirements, and we expect that employers who have not disclosed (or have disclosed figures that appear to be statistically improbable, such as pay gaps above 100%) will be contacted to confirm their figures. There is a possibility of fines for companies who refuse to publish. For those who have published, the focus is already moving to next year’s disclosure.

What next - four priorities for 2018 and beyond

1. Plan for next year’s reporting now

  • Understand what your reported pay gap will be for 2018/19 and start communication planning now

2. Revisit equal pay and prepare for future compliance

  • Ensure you have the reporting and governance in place to monitor your equal pay risks and prepare for any new reporting requirements, in the UK and around the world

3. Review your pay governance

  • Examine your existing job architecture and pay structures to ensure you have the mechanisms in place to drive pay fairness

4. Take action to close the gap

  • Build a robust and detailed action plan to make the changes to improve the diversity of your organisation and support inclusion. Ensure your action plan is led by the business and underpinned by robust data, specific KPIs and strong HR policies and processes
People standing.

Contact us

Alastair Woods
Partner, Reward, PwC United Kingdom
Tel: +44 (0) 7834 250 359
Email

Jon Terry
UK Diversity and Inclusion Consulting Leader, PwC United Kingdom
Tel: +44 (0)7720 555 397
Email

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