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GENDER PAY GAP – THE CALCULATION 

(extract from www.gov.uk/guidance)

Hourly pay figures you must calculate

You must calculate your organisation’s gender pay gap in hourly pay, as both a:

  • mean figure (the difference between the average of men’s and women’s pay)
  • median figure (the difference between the midpoints in the ranges of men’s and women’s pay) 

Mean gender pay gap in hourly pay: how to calculate

  • Add together the hourly pay rates of all male full-pay relevant employees
  • Divide this figure by the number of male full-pay employees – this gives you the mean hourly pay rate for men
  • Add together the hourly pay rates of all female full-pay relevant employees
  • Divide this figure by the number of female full-pay employees – this gives you the mean hourly pay rate for women
  • Subtract the mean hourly pay rate for women from the mean hourly pay rate for men
  • Divide the result by the mean hourly pay rate for men
  • Multiply the result by 100 – this gives you the mean gender pay gap in hourly pay as a percentage of men’s pay

Median gender pay gap in hourly pay: how to calculate

  • Arrange the hourly pay rates of all male full-pay relevant employees from highest to lowest
  • Find the hourly pay rate that is in the middle of the range – this gives you the median hourly rate of pay for men
  • Arrange the hourly pay rates of all female full-pay relevant employees from highest to lowest
  • Find the hourly pay rate that is in the middle of the range – this gives you the median hourly rate of pay for women
  • Subtract the median hourly pay rate for women from the median hourly pay rate for men
  • Divide the result by the median hourly pay rate for men
  • Multiply the result by 100 – this gives you the median gender pay gap in hourly pay as a percentage of mens’ pay

Bonus pay figures you must calculate

You must calculate your organisation’s figures for the:

  • proportion of males and females who got bonus payments
  • mean gender pay gap in bonus payments
  • median gender pay gap in bonus payment

Proportion of males and females who got bonus payments: how to calculate

  • Get the number of male relevant employees who were paid bonus pay in the 12 months to the snapshot date
  • Divide this by the number of male relevant employees
  • Multiply the result by 100 – this gives you the percentage of males who were paid a bonus
  • Get the number of female relevant employees who were paid bonus pay in the 12 months to the snapshot date
  • Divide this by the number of female relevant employees
  • Multiply the result by 100 – this gives you the percentage of females who were paid a bonus.

Mean gender pay gap in bonus pay: how to calculate

  • Add together the bonus payments made to all male relevant employees in the 12 months to the snapshot date
  • Divide this figure by the number of male relevant employees – this gives you the mean amount of bonus pay for men
  • Add together the bonus payments made to all female relevant employees in the 12 months to the snapshot date
  • Divide this figure by the number of female relevant employees – this gives you the mean amount of bonus pay for women
  • Subtract the mean bonus amount for women from the mean bonus amount for men
  • Divide the result by the mean bonus amount for men
  • Multiply the result by 100 – this gives you the mean gender pay gap for bonuses as a percentage of men’s pay

Median gender pay gap in bonus pay: how to calculate

  • Arrange the bonus pay amounts paid to all male relevant employees in the year to the snapshot date from highest to lowest
  • Find the bonus pay amount that is in the middle of the range – this gives you the median bonus pay figure for men
  • Arrange the bonus pay amounts paid to all female relevant employees in the year to the snapshot date from highest to lowest
  • Find the bonus pay amount that is in the middle of the range – this gives you the median bonus pay figure for women
  • Subtract the median bonus pay figure for women from the median bonus pay figure for men
  • Divide the result by the median bonus pay figure for men
  • Multiply the result by 100 – this gives you the median gender pay gap for bonus pay as a percentage of men’s pay

Gender pay gap quartile figures you must calculate

You must calculate your organisation’s figures to show the proportion of male and female full-pay relevant employees in four pay bands.

To do this, you need to:

  • rank your full-pay relevant employees from highest to lowest paid
  • divide this into 4 equal parts (‘quartiles’)
  • work out the percentage of men and women in each of the 4 parts

Gender pay gap quartile figures: how to calculate

1. Divide into quartiles

Get a listing of the hourly pay rate of all your organisation’s full-pay relevant employees in the pay period that covers the snapshot date. 

Divide this list into 4 quartiles, with an equal number of employees in each section. From highest paid to lowest paid, these quartiles will be the:

  • upper quartile
  • upper middle quartile
  • lower middle quartile
  • lower quartile

If the number of employees isn’t divisible by 4, distribute them as evenly as possible. For example, if you have 322 full-pay relevant employees an equal split would mean 80 employees in each quartile, with 2 employees left over. 

To distribute the numbers as evenly as possible, you can add one employee to the lower quartile and one employee to the upper middle quartile.

This means there are 81 employees in the lower quartile, 80 employees in the lower middle quartile, 81 employees in the upper middle quartile, and 80 employees in the upper quartile. 

2. Check the gender distribution of matching hourly rates

If there are employees on the same hourly rate of pay crossing between quartiles, make sure that males and females are split as evenly as possible across the quartiles. 

For example, you have 322 full-pay relevant employees and have split the list into quartiles. 40 staff all have the same hourly rate of pay - 36 are female and 4 are male. Of them, 10 have fallen into the lower quartile, while 30 have fallen into the lower middle quartile. 

To evenly distribute these staff by gender, you can see that for every 9 females listed, one male should be listed with them. You should list 9 female employees and one male employee in the lower quartile, and 27 female employees and 3 male employees in the lower middle quartile. 

3. Work out the percentage of males and females in each quartile

For each quartile, you need to:

  • divide the number of male full-pay relevant employees by the total number of full-pay relevant employees and multiply by 100 – this gives you the percentage of males in the quartile
  • divide the number of female full-pay relevant employees by the total number of full-pay relevant employees and multiply by 100 – this gives you the percentage of females in the quartile

 

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