Gender Pay Gap Reporting in 2022: International Women's Day update
Gender Pay Gap Reporting in 2022: International Women’s Day update
The Gender Pay Gap Information Act 2021 was signed into law last year, but regulations prescribing the details and requirements associated with the reporting of the information are still awaited. On International Women's Day, 8 March 2022, the Minister for Children, Equality, Diversity, Integration and Youth announced some details of what the regulations will contain.
The Minister stated that the regulations will be published in the coming weeks
Employers with 250 or more employees will choose a 'Snapshot' date (the relevant date for the payroll data) in June 2022 and will be required to report their gender pay gap (GPG) on the same date in December 2022
While further details are still awaited, the announcement indicated the following information will be required to be reported:
The mean and median hourly wage gap. The mean calculation will reflect the entire pay range and the median will exclude the impact of unusually high earners.
Data on bonus pay
The mean and median pay gaps for part-time employees and for employees on temporary contracts
The proportions of male and female employees in the lower, lower middle, upper middle and upper quartile pay bands
As outlined in the Gender Pay Gap information Act 2021 the employers in scope will be required to publish a statement setting out, in their opinion, the reasons for their GPG and the measures (if any) being taken or proposed to be taken to eliminate or reduce their GPG.
With reporting due to commence in December 2022 this does not leave much time for employers who are in scope to prepare.
We recommend employers seek advice early so that they allow sufficient time to:
Determine what technology and supports may be required to "run" the calculations and provide any necessary staff training
Establish what elements of pay need to be inputted in the calculations
Identify the quartiles across employee headcount
Gather and analyse payroll data
Prepare for the requirement to publish a statement accompanying the GPG report outlining the reasons for the GPG and the measures (if any) being taken or proposed to be taken to address it
Identify and mitigate any equal pay or discrimination issues and ensure compliance with data protection principles
Given the potential impact on an employer's brand reputation, recruitment and retention of staff, it is vital that compliance and messaging around an employer's GPG are managed carefully.
Please continue to monitor our GPG hub where we will provide further updates, resources and guidance for employers. For further information in relation to this topic, please contact Triona Sugrue, Knowledge Lawyer or any member of the ALG Employment team.