Gender pay “league tables” to be imposed on businesses

New government rules will force firms to reveal gender pay gap

Firms with more than 250 employees will be forced to reveal pay differences between men and women under new regulations unveiled by the government today.

In the UK men earn an average of 20% more than women.

Under the new rules companies will have to begin keeping records on gender pay differences from April 2017, a full year before the law takes effect in 2018.

The employers will have to publish the data on their websites, with senior executives required to sign them off.

The data must detail the number of men and women in each pay bracket in order to highlight areas where the biggest discrepancies lie.

The new rules were announced by women and equalities minister Nicky Morgan, who said the regulations would mean there would be “nowhere for gender inequality to hide”.

She said: “I’m calling on women across Britain to use their position as employees and consumers to demand more from businesses, ensuring their talents are given the recognition and reward they deserve.”

But CBI director-general Carolyn Fairbairn warned that the data should not be used to name and shame firms, as it will still not be enough information to give a clear picture of companies’ management.

She said: “Where reporting can be useful is as a prompt for companies to ask the right questions about how they can eradicate the gender pay gap.

“The government should consult closely with business to ensure that this new legislation helps close the gender pay gap, rather than ending up as a box-ticking exercise.”

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