1. What is Gender Pay Gap?

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

2. How Does the Calculator Work?

The calculator uses the standard pay gap formula:

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 organizations identify compensation disparities, supports equal pay initiatives, and promotes workplace fairness and transparency.

4. Using the Calculator

Tips: Enter the average salaries for male and female employees in your organization. Both values must be positive numbers (male average must be greater than 0).

5. Frequently Asked Questions (FAQ)

Q1: What does a positive gap percentage mean?
A: A positive percentage indicates women earn less than men on average. A 10% gap means women earn 90% of what men earn.

Q2: Can the gap be negative?
A: Yes, a negative gap would indicate women earn more than men on average, though this is rare in most industries.

Q3: What's considered a significant pay gap?
A: While any gap may warrant examination, gaps above 5% are generally considered significant and worth investigating.

Q4: Does this account for different roles/experience?
A: No, this calculates the unadjusted pay gap. For adjusted gaps that account for factors like role and experience, more complex analysis is needed.

Q5: How often should organizations calculate this?
A: Best practice is to calculate annually to track progress and identify any emerging disparities.