1. What is the Gender Pay Gap?

The gender pay gap measures the difference between men's and women's average earnings in the workforce. In the UK, it's typically calculated using median hourly earnings excluding overtime.

2. How Does the Calculator Work?

The calculator uses the standard UK gender pay gap formula:

Where:

• Median Male Hourly — Median hourly pay for male employees
• Median Female Hourly — Median hourly pay for female employees

Explanation: The formula shows what percentage less women earn compared to men. A positive percentage indicates women earn less than men.

3. Importance of Pay Gap Calculation

Details: The gender pay gap helps identify pay disparities between genders, supports equal pay initiatives, and is required reporting for UK employers with 250+ employees.

4. Using the Calculator

Tips: Enter median hourly rates in pounds sterling (£) for both male and female employees. The calculator will show the percentage difference.

5. Frequently Asked Questions (FAQ)

Q1: What's the current UK gender pay gap?
A: As of 2023, the median gender pay gap for all employees in the UK is approximately 14.9%.

Q2: Is this the same as equal pay?
A: No, equal pay means paying men and women the same for equal work, while the pay gap shows overall earnings differences.

Q3: Why use median instead of mean?
A: Median is less affected by extreme high earners and better represents typical pay differences.

Q4: When is gender pay gap reporting required?
A: UK employers with 250+ employees must report annually by April 4th (public sector) or April 5th (private sector).

Q5: What factors contribute to the pay gap?
A: Factors include occupational segregation, part-time work prevalence among women, and underrepresentation in senior roles.