Gender Pay Gap Calculator Uk

Gender Pay Gap Formula:

\[ \text{Gap} = \frac{(\text{Mean Male Hourly} - \text{Mean Female Hourly})}{\text{Mean Male Hourly}} \times 100 \]

Gender Pay Gap:

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1. What is the Gender Pay Gap?

The gender pay gap measures the difference between men's and women's average earnings across an organization or the labor market. It's expressed as a percentage of men's earnings.

2. How Does the Calculator Work?

The calculator uses the standard UK gender pay gap formula:

\[ \text{Gap} = \frac{(\text{Mean Male Hourly} - \text{Mean Female Hourly})}{\text{Mean Male Hourly}} \times 100 \]

Where:

Mean Male Hourly — Average hourly pay for male employees
Mean Female Hourly — Average hourly pay for female employees

Explanation: The formula calculates what percentage women earn less than men on average.

3. Importance of Pay Gap Calculation

Details: Understanding the gender pay gap helps identify pay disparities, supports equal pay initiatives, and is a legal requirement for large employers in the UK.

4. Using the Calculator

Tips: Enter the mean hourly rates for male and female employees in pounds sterling. Both values must be valid (male hourly > 0, female hourly ≥ 0).

5. Frequently Asked Questions (FAQ)

Q1: What's considered a significant pay gap?
A: In the UK, the median pay gap is about 15%. Any gap above 5% typically warrants investigation.

Q2: Does this account for different roles?
A: No, this is the "raw" pay gap. For role-adjusted gaps, more complex analysis is needed.

Q3: What's the UK legal requirement?
A: Employers with 250+ employees must report their gender pay gap annually.

Q4: Why use mean instead of median?
A: The mean shows the overall pay difference, while the median shows the middle point (both are required in UK reporting).

Q5: Can the gap be negative?
A: Yes, a negative gap would indicate women earn more on average than men in that organization.