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 gender pay gap in hourly pay: how to calculate

Median gender pay gap in hourly pay: how to calculate

Bonus pay figures you must calculate

You must calculate your organisation’s figures for the:

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

Mean gender pay gap in bonus pay: how to calculate

Median gender pay gap in bonus pay: how to calculate

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:

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:

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: