4th April 2018

INFORMATION UPDATE

 Issue No.  2018/05

 Sentient
              

 

STATUTORY RATE INCREASES & GENDER PAY GAP REPORTING

The start of a new tax year always heralds in a few changes and we therefore remind you of the rates as set out below.  We also provide a few comments on Gender Pay Gap Reporting and provide a link through to further details on how the calculations should be done.  

National Living Wage / National Minimum Wage

 

Current Rate

With effect 01.04.18

Workers aged 25 & over

£7.50

£7.83

Workers aged between 21 & 24

£7.05

£7.38

Workers aged between 18 & 20

£5.60

£5.90

Training Rate

£5.60

£5.90

Workers aged between 16 & 17

£4.05

£4.20

Apprentices

£3.50

£3.70

Daily Accommodation Offset

£6.40

 £7.00

Statutory Rates 

Weekly Rates

Current Rate

New
Rate

Effective from

Statutory Maternity / Paternity / Shared Parental Leave

£140.98

£145.18

01.04.18

Statutory Adoption Pay

£140.98

£145.18

01.04.18

Maternity Allowance

£140.98

£145.18

01.04.18

Statutory Sick Pay

£89.35

£92.05

01.04.18

Earning Threshold for SSP, SMP, SPP and SAP

£113.00

£116.00

01.04.18

Other Changes

 

 

 

Guarantee Pay  This payment is a daily rate for the first 5 days an employee is laid-off within a 3 month period

£27.00

£28.00

06.04.18

Other Changes 

 

Current Rate

New
Rate

Effective from

The limit on the amount of a week’s pay for the purposes of calculating, among other things, statutory redundancy payments and the basic award for unfair dismissal

£489.00

£508.00

06.04.18

The maximum compensatory award for unfair dismissal subject to the overarching limit of one year’s pay

£80,541

£83,682

06.04.18

The minimum basic award in cases where the dismissal was unfair by virtue of health and safety, employee representative, trade union or occupational pension trustee reasons

£5,970

£6,203

06.04.18

 

GENDER PAY GAP REPORTING

Today, 4th April 2018 is the final day for employers with 250 or more employees to report their gender pay gap.  The Equality and Human Rights Commission (EHRC) has today warned that letters will be sent on 9th April to all those employers who have not complied giving 28 days to comply before an investigation takes place and an unlawful act notice is issued. The EHRC have warned that failure to comply with the regulations will ultimately lead to an unlimited fine decided by the courts.

With companies revealing their figures, the gender pay gap has become a major talking point and as usual mainstream media are fast to grab a headline seemingly before any analysis of what the information means. 

So what is the gender pay gap?
The gender pay gap is the percentage difference between average hourly earnings for men and women.  Employers must publish a snapshot of their employee pay as at 5th April 2017 (31st March 2017 for public sector) (“the snapshot date”).  Employers have the option to include a narrative with their calculation, e.g. to provide an explanation for the gender pay gap, and/or detail what actions are being taken to address the gender pay gap within the organisation.

A key point to note is that the pay gap isn’t the same as equal pay.  Under the Equal Pay Act 1970, and more recently the Equality Act 2010 it is unlawful to pay people unequally when doing the same job or work of equal value due to their gender. This applies to all employers, irrespective of their size.  A Company that complies with equal pay legislation by paying men and women the same in comparable roles, could still have a gender pay gap, if there is a majority of one gender in higher paid senior roles.

What is published?
Employers must publish and report their organisation’s:

  • mean gender pay gap in hourly pay
  • median gender pay gap in hourly pay
  • mean bonus gender pay gap
  • median bonus gender pay gap
  • proportion of males and females receiving a bonus payment
  • proportion of males and females in each pay quartile

Figures can be reported to the government as either whole percentages or percentages rounded to one decimal place.  To make the calculations, the data is based on payroll figures drawn from a specific date each year - called the ‘snapshot date’.

How do you do the calculations?
To calculate the mean and median for Gender Pay Gap reporting purposes, you should follow the step by step guide found here. 


 

 

 

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