Report of the Personnel Manager to the Director of Resources, March 2023
GENDER PAY GAP
1 Purpose of report
1.1 To report on the findings in relation to the Gender Pay Gap at Erewash Borough Council in 2022.
2 Recommendations
To note the findings of the gender pay gap calculations.
3 Information, issues and options
3.1 The Gender Pay Gap Information Regulations came into force on 6 April 2017.3.2 The regulations require employers with over 250 employees to publish their gender pay gap information annually. The key date needed to carry out the calculations is 31 March and this is the date from which an employer has a year to publish their gender pay report. This report is based on pay and staffing data on 31 March 2022 and it is required to be published by 31 March 2023.
3.3 Employers have to report on their gender pay gaps using 6 different measures:
• Mean Gender Pay Gap: The difference between the mean hourly rate of males and females
• Median Gender Pay Gap: The difference between the median hourly rate of males and females
• Mean Bonus Gap: The difference between the mean bonus pay paid to males and females
• Median Bonus Gap: The difference between the median bonus pay paid to males and females
• Bonus Proportions: The proportions of males and females who were paid bonus pay during the relevant period
• Quartile Pay Bands: The proportions of males and females in the lower, lower middle, upper middle and upper quartile pay bands
3.4 The calculations are based on ‘gross ordinary pay’ which includes basic pay, allowances (but not payments to reimburse expenses), shift premium pay, piecework pay and pay for leave. It does not include overtime pay, pay in lieu of leave, benefits in kind, redundancy pay and other payments in relation to termination.
3.5 Bonus pay means remuneration in the form of money, vouchers, and securities and also relates to profit sharing, productivity, performance, incentive or commission.
3.6 Public sector employers must publish the results on their own website and also upload the required information onto the Government’s Gender Pay Gap Reporting Service. The next report will be based on pay and staffing data on 31 March 2023 and the deadline for publishing that report is 30 March 2024.
4 Risk
4.1 While there are no sanctions for failing to report the gender pay gap data, the main risk is the reputational damage arising from failing to upload the information onto the Erewash Borough Council website and the government website.
5 Erewash Borough Council Results as at 31 March 2022
EREWASH BOROUGH COUNCIL 2022 - 2023 GENDER PAY GAP DATA
| HOURLY RATE | MEAN | MEDIAN |
|---|---|---|
| WOMEN’S HOURLY RATE IS | 10.4% LOWER | 0.2 % LOWER |
| Sex | Male | Female |
|---|---|---|
| TOP QUARTILE | 62.2% | 37.8% |
| UPPER MIDDLE QUARTILE | 36.5% | 63.5% |
| LOWER MIDDLE QUARTILE | 32.4% | 67.6% |
| LOWER QUARTILE | 61.6% | 38.4% |
| WOMEN’S BONUS PAY IS | MEAN | MEDIAN |
|---|---|---|
| % HIGHER/LOWER | 0% | 0% |
| PERCENTAGE WHO RECEIVED BONUS PAY | OF MEN 0% | OF WOMEN 0% |
5.1 The results show that the mean figure for women is 10.4% lower than for men. In addition, the median figure for women is 0.2% lower than for men. For ‘gross ordinary pay’ pay elements such as essential car user, standby and childcare payments are incorporated into the calculations which distort the figures in favour of males. However, it is also true that there are more males (62.2%) in the top quartile of pay than females (37.8%).
5.2 It is noted that the mean figure has increased by 1.3% in 2022 (10.4%) in comparison to the result in 2021 (9.1%). The median figure has also increased to 0.2% in 2022 from 0.0% in 2021.
5.3 The hourly rate for the mean figures is £15.77 for males and £14.13 for females.
5.4 The hourly rate for the median figures is £12.20 for males and £12.17 for females. It is noted, this represents a slight reduction of £0.03 of the median hourly rate for females compared to the previous year.
5.5 The pay quartiles demonstrate that there are more females than males in the lower middle quartile and upper middle quartile; this is in line with the gender ratio of the council as Erewash Borough Council has more women employed than men.
5.6 In line with the previous year, it is noted that there are more men in the lower quartile than women. There are also more men than women in the top quartile which is occupied by higher paid employees; this is consistent with the previous year.