UK businesses must now disclose details of the gender pay gap, according to new government regulations coming into force on Wednesday.
Voluntary, private and public sector businesses with 250 or more employees are now required to publish their figures within the next year. The regulations will cover approximately 9,000 employers with over 15 million employees, representing nearly half of the UK’s workforce.
According to government figures, the current gender pay gap is at a record 18.1 percent, although the figure was higher for those in more senior positions, resting at 37 percent for those within financial managers or directorship positions.
The Minister for Women and Equalities, Justine Greening, commented on the measure:
“We have more women in work, more women-led businesses than ever before and the highest proportion of women on the boards of our biggest companies. This has helped us to narrow the gender pay gap to a record 18.1 per cent – but we want to eliminate it completely.
“Helping women to reach their full potential isn’t only the right thing to do, it makes good economic sense and is good for British business. I am proud that the UK is championing gender equality and now those employers that are leading the way will clearly stand out with these requirements.”
The government initiative has also been received warmly by activists, who have welcomed the steps towards achieving gender parity.
Sam Smethers, Chief Executive at Fawcett Society, a women’s rights organisation said:
“This is the most significant legal change since the Equal Pay Act and we strongly welcome it. For the first time large employers will be required to calculate & publish their gender pay gap.
“Employers should see it as an opportunity not a threat. Through gender pay gap reporting they can address the productivity gap & get the best person for the job at the right level.”
Ultimately however, the UK continues to fall short in global rankings on the gender gap. According to the Global Gender Gap Index for 2016 released last October, the UK came in at a disappointing 20. Conversely, Nordic countries such as Iceland, Finland and Norway continued to feature in the upper percentile of the rankings. This marks the sixth-year running in which Iceland has topped the report for gender equality.
This follows a reported significant rise in women in the UK working well into their seventies, as revealed by recent reports released by the Office for National Statistics (ONS) in March.