Understanding gender pay gap reporting: What employers need to know

In the UK, addressing pay disparities between men and women is not just a matter of ethics but also a legal obligation for many organizations. Understanding the requirements and implications of gender pay gap reporting is crucial for both compliance and fostering an equitable workplace.

Who needs to report?

Organizations with 250 or more employees on the annual snapshot date are required to report their gender pay gap data. This applies to employers in the private, public, and voluntary sectors.

There are two key snapshot dates depending on the sector:

• Private and voluntary sector: snapshot date is 5 April; reports must be submitted by 4 April the following year.

• Public sector: snapshot date is 31 March; reports must be submitted by 30 March the following year.

What must be reported?

Employers are required to calculate and publish six key metrics:

1. Mean gender pay gap – the average hourly pay gap between men and women

2. Median gender pay gap – the middle point in the hourly pay distribution for men and women

3. Mean bonus gender pay gap – the average difference in bonus pay

4. Median bonus gender pay gap – the median difference in bonus pay

5. Bonus proportions – the percentage of men and women receiving bonus pay

6. Quartile pay bands – the distribution of men and women across four pay bands

How should it be reported?

Employers must submit their figures to the UK government's gender pay gap service. In addition, the data should be published on the organization’s own website in a clearly accessible location. A supporting narrative is recommended to explain the data, provide context, and share any actions being taken to address disparities.

What happens if you don’t comply?

Failure to meet reporting obligations can result in enforcement action from the Equality and Human Rights Commission. Beyond legal consequences, organizations also risk reputational damage, reduced employee engagement, and challenges in attracting talent.

Best practices for employers

• Start early – begin reviewing data well in advance of the deadline

• Be transparent – communicate not only the numbers, but also what they mean

• Take action – use the findings as a starting point to improve pay equity and inclusion

Gender pay gap reporting is more than a compliance exercise. It’s an opportunity for employers to build trust, promote transparency, and create meaningful change in how people are valued and rewarded in the workplace.