Gender Pay Gap Calculation

Gender Pay Gap Formula:

\[ \text{Gap} = \frac{\text{Male Average} - \text{Female Average}}{\text{Male Average}} \times 100 \]

Gender Pay Gap:

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1. What is 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 in the workforce.

2. How Does the Calculator Work?

The calculator uses the standard pay gap formula:

\[ \text{Gap} = \frac{\text{Male Average} - \text{Female Average}}{\text{Male Average}} \times 100 \]

Where:

Male Average — Average salary for male employees
Female Average — Average salary for female employees

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

3. Importance of Pay Gap Calculation

Details: Calculating the gender pay gap helps identify wage disparities, supports equal pay initiatives, and promotes workplace transparency and fairness.

4. Using the Calculator

Tips: Enter average male and female salaries in the same currency. The calculator will show the percentage difference between them.

5. Frequently Asked Questions (FAQ)

Q1: What is considered a significant pay gap?
A: Any gap above 5% is generally considered significant, though this varies by industry and country.

Q2: Does this account for different roles?
A: This is an unadjusted gap. For role-specific comparisons, you would need to compare similar positions.

Q3: What's the average pay gap globally?
A: According to recent studies, the global gender pay gap averages around 16-20%.

Q4: What factors contribute to the pay gap?
A: Factors include occupational segregation, work experience, unconscious bias, and differences in negotiation.

Q5: How can organizations reduce their pay gap?
A: Strategies include pay transparency, regular audits, standardized pay scales, and diversity initiatives.