Out-Law / Your Daily Need-To-Know

Gender pay gap for managers £3,000 more than thought

Out-Law News | 26 Sep 2017 | 10:12 am | 1 min. read

Analysis of data provided according to the UK government's gender pay reporting requirements has shown that the difference in average salaries for male and female managers is almost £3,000 more than previously suggested.

The Chartered Management Institute (CMI) and XpertHR have analysed the average salaries of managers using new reporting regulations which came into force in April. Including salary and bonuses and additional income or perks such as commission, male managers earn on average £11,606 more than their female counterparts, a gap of 26.8%.

Previous analysis of the gender pay gap based on basic salaries put the gap in managers' pay at 23.1% last year, or £8,964. Looking only at basic pay, the salary gap has also worsened to 23.6%, or £9,326.

The analysis is based on salary data from over 118,000 managers working in 423 organisations over the past year.

Although some of the discrepancy in male and female pay could be attributed to the fact that 66% of junior management positions are held by women, and only 26% of senior managers are female, there is also a significant gap at the senior level. For directors, men earn an average of £175,673 and women £141,529, a gap of £34,144 or nearly 20%.

The analysis also showed the gender bonus gap across all managers was 46.9%. However the average bonus for a male CEO is £89,230 compared to £14,945 for a woman – an 83% bonus pay gap.

The average increase in pay and bonuses for male directors this year is 5.8% compared to 3.7% for women. At manager level, men received an average increase of 3.7% compared to 3.5% for women.

The new regulations on gender pay gap reporting came into force in April 2017 and all private and voluntary sector employers with more than 250 staff have until April next year to report on their information relevant to this April. The information must be published online on the company's own website as well as through a government portal although to date just 80 employers have submitted data.

Employers subject to the gender pay gap reporting regulations are required to publish their overall mean and median pay gaps based on gross hourly pay for men and women, expressed as a percentage; as well as their mean and median gender bonus gaps. They are also required to publish the proportion of male and female employees within each quartile of their pay distribution, ordered from lowest to highest pay, as well as the proportion of both men and women that have been paid a bonus in the preceding 12 month period.

Last week PwC became the first company to not only publish its gender pay gap in its annual report but also its black and minority ethnic (BAME) pay gap. It said its gender pay gap was 13.7% and its BAME gap 12.8%.