Are you ready for the Gender Pay Gap Deadline?

Self-employed: You must include self-employed workers in your figures if they personally provide work for you and you have the relevant data available to add to your figures.

Part-time employees: Any part-time employees in your organisation must also be included in the calculations.

Job shares: If you have any job-share arrangements in your organisation, each person in a job-share counts as one employee for the report.

Overseas workers: You must include any employees that are based overseas if they have a contract of employment that is subject to English, Welsh or Scottish law.

Partners: You don’t need to include any partners that you have within a partnership. This is because they take a share of the profits which isn’t comparable with the pay of an employee.

Step 1

First list all ordinary pay paid to the employee during the relevant pay period (this is the period in which you pay the employee their basic pay, ie, for a monthly-paid employee, the relevant period would be one month).

If your payroll provider can give you a report detailing an individual's "ordinary pay" for the purposes of GRG reporting this could considerably reduce the amount of administration associated with this step in your reporting obligations and this may be something to discuss with them.   

Step 2

With regards to bonus pay, which is paid for a different period to the relevant pay period, divide the amount by the length of the bonus period and multiply by the length of the relevant pay period. This ensures that the bonus pay is pro-rated for the relevant pay period.

For these purposes, a year is treated as 365.25 days, and a month as 30.44 days.

Step 3

Take the amounts from Step 1 (as/if they have been adjusted by step 2) and add them together.

Step 4

Multiply the figure found from Step 3 by the ‘appropriate multiplier’ – this is 7 divided by the number of days in the relevant pay period (a month is 30.44 days and a year is 365.25).

If an employee is paid hourly, then this step is not normally required.

Step 5

Divide the final amount by the number of working hours in a week for that employee.

Employee A.

A's contract of employment provides for a 35-hour working week. A routinely works more than 35 hours a week but does not get paid any overtime. A's current annual salary is £25,000 and he is paid monthly.

Assuming A can be said to have "normal working hours", A's hourly rate of pay would be (£25,000 ÷ 12) x (7 ÷ 30.44) ÷ 35 = £13.69. If A cannot be said to have "normal working hours" then it would be necessary to work out the hourly rate using his average working hours over a 12-week period.

Employee B.

B is paid by the hour, with varying contractual rates of pay. B receives £6.70 an hour for daytime shifts, and £10 an hour for shifts carried out after 7 pm. B is paid weekly, according to her timesheet of hours worked. In the pay week including 5 April, B worked 25 hours at the daytime rate, and 10 hours at the additional rate.

B's hourly rate of pay is (25 x £6.70) + (10 x £10) ÷ 35 = £7.64.

Employee C.

C is on their maternity leave and is receiving statutory maternity pay of £139.58 a week. On 5 April, she receives a pro-rated discretionary annual bonus of £2,000, relating to the last financial year. Her contractual hours are 35 a week, and she is paid monthly.

C is not a full-pay relevant employee, because she is on her maternity leave, and so there is no need to calculate her hourly rate of pay for the purposes of gender pay gap reporting. However, her discretionary annual bonus would need to be reported as part of the gender bonus gap figures.