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.
This provides summary information and comment on the subject areas covered. Where employment tribunal and appellate court cases are reported, the information does not set out all of the facts, the legal arguments presented and the judgments made in every aspect of the case. Employment law is subject to constant change either by statute or by interpretation by the courts. While every care has been taken in compiling this information, we cannot be held responsible for any errors or omissions. Specialist legal advice must be taken on any legal issues that may arise before embarking upon any formal course of action.
