1. What is the Gender Pay Gap?

The gender pay gap measures the difference between men's and women's average earnings, expressed as a percentage of men's earnings. It highlights inequality in pay between genders for similar work.

2. How Does the Calculator Work?

The calculator uses the standard gender pay gap formula:

Where:

• \( \text{Male Pay} \) — Average hourly pay for male employees
• \( \text{Female Pay} \) — Average hourly pay for female employees

Explanation: The formula calculates what percentage less women earn compared to men for the same work. A positive percentage indicates women earn less than men.

3. Importance of Gender Pay Gap Calculation

Details: Calculating the gender pay gap helps identify pay disparities, supports equal pay initiatives, and promotes workplace transparency. Many countries require companies to report their gender pay gaps.

4. Using the Calculator

Tips: Enter the average hourly pay for male and female employees in the same currency. The calculator will show the percentage difference.

5. Frequently Asked Questions (FAQ)

Q1: What does a 15% pay gap mean?
A: A 15% gap means women earn 85% of what men earn, or 15% less than men for comparable work.

Q2: Is a zero pay gap possible?
A: Yes, a zero gap means equal pay for equal work, though this is still rare in many industries.

Q3: Should bonuses be included?
A: For comprehensive analysis, include all compensation (salary, bonuses, benefits), but this calculator focuses on base hourly pay.

Q4: What's considered a significant pay gap?
A: Any gap above 5% is generally considered significant and worth investigating for potential discrimination.

Q5: How often should pay gaps be calculated?
A: Annually is recommended to track progress and identify any emerging disparities.