Addressing the Gender Pay Gap public sector employers. Charles M Ramsden GEO

Transcription

1 Addressing the Gender Pay Gap public sector employers Charles M Ramsden GEO

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3 Universal truth 1 - Gender pay gap Unequal pay

4 Universal truth 2 GPG means all sorts of stuff

5 This presentation covers - Gender pay gap transparency and reporting Not occupational segregation, careers guidance, flexible working, discrimination etc

6 Gender pay gap regulations for the public sector Overall aim is to ensure all large employers are reporting on data relating to a snapshot date of 31 March 2017, with publication by March 2018, and annually thereafter. The public sector gender pay regulations will require the same calculations from employers. In August we issued a consultation to gather views on particular issues which may affect the public sector and ensure the regulations and associated guidance are tailored appropriately.

7 Gender pay gap The GPG in the public sector remains lower than the private sector 30% Gender Pay Gap by sector, 2013 and % 26.9% 25.3% % 19.8% 19.2% 18.5% 17.5% 19.2% 17.2% 18.8% 17.9% 15% 10% 11.4% 10% 9.4% 9.5% 5% 0% -5% -10% National Public Private National Public Private National Public Private -2.8% -1.9% -5.8% -6.5% All employees Full-time employees Part-time employees

8 Number of employees (thousands) Public sector employment has decreased since ,000 5, Public sector employment by industry; headcount 5,696 5,352 4,000 3,000 2,000 1,500 1,517 1,545 1,588 1, Construction HM Forces Police (including civilians) 1,073 1,020 Public administration Education National Health Service Other health and social work Other public sector Total public sector

9 WHO: Which Public Authorities are Covered? All public sector organisations currently listed in Schedules 1 and 2 to the Specific Duties Regulations will be subject to the new mandatory GPG reporting requirements if they have 250 or more employees. Any public authority not listed in Schedule 19 of the Equality Act 2010 will be subject to the private sector reporting requirement made under s78 of the Act (if they have 250 or more employees). We are using this opportunity to review and update the bodies listed at Schedule 19 and the Schedules to the Specific Duties Regulations.

10 WHO: Employees Section 83 of the Equality Act 2010 defines employees as people employed under a contract of employment, a contract of apprenticeship or a contract personally to do work. Employees who are not based in Great Britain may still be in scope if there is a strong connection with Great Britain. Self-employed people (those who are not within the definition of employee in the Equality Act) or volunteers should not be included in the overall gender pay gap calculations. Agency workers will be taken into account by the employer with whom they have the contract of employment - generally their agency.

11 WHAT: Calculations 1. Will require mean and median gender pay gaps, based on the gross hourly pay rate of all employees who are in scope that are paid on the snapshot date of 31 March. 2. Will need to publish the difference between the mean and median bonus payments paid to men and women covers all bonus payments made in a 12-month period. 3. Proportion of male and female employees that received a bonus 4. Will also be required to report on the proportions of men and women in each quartile of their pay distribution.

12 Gender Pay Gap Calculations Difference in mean and median pay of male and female employees expressed as a percentage of men s earnings. Based on the gross hourly pay rate of all employees who are in scope of the regulations that are paid on the snapshot date of 31 March. Based on head count and employees contracted hours (not on exact hours worked)

13 Pay Will include: basic pay paid leave, including annual leave, sick leave, maternity, paternity, adoption or parental leave (except where an employee is paid less than usual because of being on leave) area and other allowances shift premium pay pay for piecework bonus pay [if paid in the pay period] It will not include: overtime pay, expenses, the value of salary sacrifice schemes, benefits in kind, redundancy pay, tax credits.

14 Bonus Gaps Difference in mean and median bonus amount paid to male and female employees expressed as a percentage of the mean and median bonus pay received by male employees. Using data from a 12-month period preceding the relevant date (31 March), using head count not FTE. Only those employees who receive bonuses should be included in the calculation. Employers will also be required to publish the proportion of male and female employees that received a bonus.

15 Quartiles Employers will need to calculate their quartile data by dividing the workforce into four equal sized groups separated according to the hourly pay rate, starting from lowest paid to the highest paid. An alternative would have been calculating quartiles by dividing the overall pay distribution into four equal proportions but splitting the data in equal groups by salary range could result in very small groups e.g. an entire quartile based on the Chief Executive s salary. Quartiles based on workforce numbers should enable employers to identify if there are particular areas of concentration by gender and if there are any blockages to progression.

16 Differences between public sector and private sector GPG reporting regimes: - different snapshot date (31 March rather than 5 April) - reporting by schools / local authorities - office holders / employees (armed forces, police, judges)

17 WHEN: Reporting timeline Public authorities will need to capture the first set of data, using the snapshot methodology, during 2017/18. Can choose when to publish the information as long as the publication date falls within the 12 month period of the data being captured and is not later than 30 March 2018 (and annually afterwards). Intend to harmonise existing date of publication requirements in the Specific Duties Regulations to match this.

18 Consultation timeline 30 September 2016: consultation closed. w/b 09 Jan 2017: lay draft regulations and publish Government response to consultation. Feb/Mar 2017: regulations debated in Parliament. By 30 March: regulations come into force