Commission inquiry reveals 80 percent gender pay gap

Reading time: 2 minutes

Commission inquiry reveals 80 percent gender pay gap

The Equality and Human Rights Commission’s (ECHR) Finance Sector Inquiry has revealed that women in some of the UK’s leading finance companies receive around 80% less in performance related pay than male colleagues. The ECHR suggests that the disparity is a major factor behind the massive gender pay gap in the finance sector.

The Commission’s Finance Sector Inquiry includes data from a questionnaire sent to 50 companies employing 22.6% of workers in the sector. It reveals that nearly all women taking up new jobs start on lower average salaries than men, suggesting the gender gap is being further entrenched by recruitment patterns.

The Inquiry also suggests that the sector’s age profile may be a key factor blocking women’s success. An unusually high proportion of workers in the sector fall into the 25-39 age group – the age at which women tend to have childcare responsibilities.  

Findings from the data supplied to the Commission include:

  • Women employees earned an average of £2,875 in annual performance related pay compared to an average of £14,554 for men – a gender pay gap of 80%.
  • A gap in annual basic pay between women and men of 39%, which rises to 47% for annual total earnings when performance related pay, bonuses and overtime are taken into account.
  • Only 23% per cent of organisations surveyed report that they have undertaken an equal pay audit.

The good news is the examples of good practice in some of the organisations questioned, with one employer reporting that they made data on average bonus payments by gender available to employees. Another offered a maternity buddy system to support pregnant women and those on maternity leave.

Read more

Latest News

Read More

How leadership style assessments drive organisational success

14 January 2025

Newsletter

Receive the latest HR news and strategic content

Please note, as per the GDPR Legislation, we need to ensure you are ‘Opted In’ to receive updates from ‘theHRDIRECTOR’. We will NEVER sell, rent, share or give away your data to third parties. We only use it to send information about our products and updates within the HR space To see our Privacy Policy – click here

Latest HR Jobs

University of Bath – Human ResourcesSalary: £24,044 to £25,433 pro rata, Grade 4 This provides summary information and comment on the subject areas covered. Where

University of Plymouth – HR Operations and Business PartneringSalary: £39,105 to £45,163 per annum – Grade 7 This provides summary information and comment on the

You’ll need to be someone who is commercially minded and can enable business growth and profitability through people plans, with the ability to persuade and

You’ll need to be someone who is commercially minded and can enable business growth and profitability through people plans, with the ability to persuade and