Pay Reporting

Gender pay reporting results are something many employers will be publishing next year and the idea of publishing pay data to address inequality is one the government seems quite keen on. However, one issue that sometimes does get overlooked is ethnicity pay reporting.

Like the gender pay gap, many experts believe there is an ethnicity pay gap in the UK workforce, with employees from BAME backgrounds less likely to be found in senior or high earning positions. It is believed that only 1.5% of company directors are from BAME backgrounds in contrast to around 13% of the UK population.

PwC – who you may remember were part of the scandal involving a female employee sent home for refusing to wear high heels – were one of the first companies to voluntarily publish gender pay back in 2014. Since then it’s gender pay gap has shrunk from 15.2% to 13.7% in the last year. The ethnicity pay data shows that BAME employees earn around 13% less than non-BAME staff, with bonuses also a third less.

PwC have confirmed the gap is due to BAME staff being predominantly based in junior roles and that there is no unequal pay for staff at the same level. PwC believe that holding themselves publicly accountable to social equality issues is the best way to address them.

Whilst ethnicity pay gap reporting is not currently required by law, many believe that the gender pay reporting regulations will eventually be extended to cover other demographics, including ethnicity. In the near future, it may be worth doing an ethnicity pay gap test to see if any similar problems arise.