Gender Pay Gap Reporting 2020: Everything You Need to Know
02 Oct, 2019
In many countries in Europe, it is mandatory for businesses to report gender pay within their organizations.
Read further to learn about the rules and regulating bodies in key European countries, and what you as a business must do for gender pay gap reporting from 2019. From the snapshot date to the reporting deadline, here’s what you should know about the gender pay gap reporting from 2019 in Europe.
Review: What is the gender pay gap?
The gender pay gap is the difference between the average hourly earnings of men and women across the workforce. Most private companies and public institutions have to report both the mean and the median difference in hourly earnings as well as bonuses.
Note that the gender pay gap and unequal pay (paying men and women different wages for performing the same work) are not the same, and unequal pay is illegal in most European countries.
Equal pay for equal work has been one of the guiding principles for countries implementing gender pay equality laws.
What is equal pay for equal work?
According to the definition set out by Wikipedia, “equal pay for equal work is the concept of labor rights that individuals in the same workplace be given equal pay. It is most commonly used in the context of sexual discrimination, in relation to the gender pay gap.”
When was gender pay gap reporting introduced?
Every country has its own legislation and governing body concerning gender pay gap reporting laws and regulations. The year that gender pay gap reporting was introduced differs, but for most, it became law in 2017.
For example, in the UK, regulations were added to The Equality Act of 2010 which came into effect on 06, April 2017. The regulations stipulated that both public authorities and private and voluntary sector employers with 250 employees or more were required to publish their certain gender pay gap data, with the first round of reports due April of 2018. Most countries in Europe have similar requirements, however, make sure to look up the specific laws and regulations for your country.
You can read more about country-specific laws and requirements in our other post, Gender Pay Gap Reporting: How Does it Work in the EU?
Gender pay gap statistics
Here are some key gender pay gap facts:
- Across the EU economy, women on average earn around 16.1% less than men
- Previous figures showed in the UK that no sector paid women more than men on average. Construction had the worst median pay gap of 25%, followed by finance and insurance at 22%. The best pay gap was the accommodation and food services sector at 1%.
- Data from Eurostat shows that the EU member nations with the widest gender pay gaps (unadjusted) were Estonia (25.6%), Czech Republic (21.1%), and Germany (21%).
- The EU member nations with the lowest gender pay gaps from the same data set were Romania (3.5%), Luxembourg (5%), and Italy (5%).
- In the EU, between 2001 and 2017, the overall gender pay gap decreased by 6.6%
- Despite having one of the best economies in Europe, Germany has one of the biggest gender pay gaps at 21%.
Gender pay gap compliance & reporting in 2020
Here is what you need to know for specific countries about gender pay gap compliance and gender pay gap reporting 2019:
The United Kingdom
Gender pay gap data must be submitted to the UK government here.
- 5, April 2019 for private companies and charities
- 31, March 2019 for public sector organizations
- 4, April 2020 for private companies and charities
- 30, March 2020 for public sector organizations
- The mean gender pay gap
- The median gender pay gap
- The mean bonus gender pay gap
- The median bonus gender pay gap
- The proportion of men who receive a bonus payment
- The proportion of women who receive a bonus payment
- The proportion of men and women in each quartile pay band
Gender pay gap data can ber asked for and must then be submitted to The Equality Ombudsman, a Swedish government agency.
- 1 January 2019 for all companies and organizations
- Companies and organizations with more than 10 employees are required to produce the gap analysis in writing
- On a yearly basis together with yearly accounts
- The law requires three reports and in conjunction to this also a written salary and reimbursment policy and also a written action plan if there are discrepancies in equal pay.
The mapping has to be divided into the following parts.
- Mapping and identifying equal jobs
- Mapping and identifying equivalent jobs
- Mapping and identifying women-dominated jobs
Gender pay gap data must be submitted to the Social and Economic Committee (CSE) which is part of the French government.
- From 1, March 2019 for companies with at least 1,001 employees
- From 1, September for companies with 251 to 1,000 employees
- From 1, March 2020 for companies with 50 to 250 employees
- No later than 1, March of each year for the reference period of 12 consecutive months, chosen by the employer, preceding the publication year.
- The wage gap between men and women
- The difference in individual salary increases between men and women
- The gap in promotion rates between men and women
- The salary increase rate for employees who return from maternity leave during the reference period
- The number of employees in the underrepresented gender among the 10 highest-paid employees
*Note: Above is all of the required data listed, however, some companies may be subject to only submitting part of this information. Check the French government site for further regulation and compliance.
In Iceland, companies must acquire ‘Gender Pay Certification’ which is regulated by the Icelandic government.
These are the deadlines to acquire Equal Pay Certification, as of 14, Nov 2018:
- Workplaces with an average of 250 employees, or more, on an annual basis – no later than 31, December 2019.
- Workplaces with an average of 150-249 employees, on an annual basis – no later than 31, December 2020.
- Workplaces with an average of 90-142 employees, on an annual basis – no later than 31, December 2021.
- Workplaces with an average of 25-89 employees, on an annual basis – no later than 31, December 2022.
Find out more about the requirements for Iceland here.
The German government passed the Transparency of Pay Act in 2017, which allows employees of qualifying companies to openly inquire about the average pay of comparable employees of the opposite gender. Companies are expected to implement internal audits of pay structures to comply with this law.
- The first report was due in 2018 and only covered the preceding year, 2017, which is when the law came into effect.
- From 2018, companies with regularly more than 500 employees are required to report gender pay data every three years.
- No submission due in 2020
- Comparative remuneration, which is the remuneration of all “comparable employees” of the respective opposite gender. This criterion includes:
- The nature of the work
- Educational requirements
- Conditions of the work
- Identification of the monthly salary of each employee in the comparison group over the course of the previous calendar year
- The statistical median of the individual salary amounts
The Netherlands Institute for Human Rights is in charge of ensuring compliance with the Netherlands’ Act on Equal Treatment for Men and Women, which aims to achieve equal pay in the country.
On 28, March 2019, a new bill on equal pay was brought to the Lower House of the Netherlands government. The expectations set out in the bill were that companies with 50 or more employees would be obligated to reduce the differences in wages between men and women.
- The bill must still be debated and adopted by both the Lower House and Upper House, for which processes should be completed sometime in the near future. Updates can be followed here.
From the proposed bill, here are the requirements set out:
- Employers must apply for certification showing that within the company, there is equal pay between men and women who perform the same or similar job duties.
- A company’s annual report should highlight if it has an existing difference in pay between men and women.
- Employers must give employees access to the company wage data of other employees who perform the same or similar work for the company.
If you are a business owner and concerned about compliance with gender pay laws in your country, luckily a good HR system can automatically compile this data for you.
Heartpace has a comprehensive HR solution with gender pay gap analysis that can do most of the data collection and gender pay gap reporting for your organization. It’s not too late to start now if you haven’t already. Find out more about our solution and how we can help today.
Learn more about how to tackle gender inequality at your organization here.
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