Report of the HR Manager to the Director of Resources, March 2024
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 2023.
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. (Equality Act 2010 (Gender Pay Gap Information) Regulations 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.
3.3 Employers must report on their gender pay gaps using six 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 This report is based on pay and staffing data on 31 March 2023 and it is required to be published by 30 March 2024.
3.5 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.
3.6 Bonus pay means remuneration in the form of money, vouchers, and securities and relates to profit sharing, productivity, performance, incentive, or commission.
3.7 Public sector employers must publish the results on their own website and upload the required information onto the Government’s Gender Pay Gap Reporting Service.
3.8 On 31 March 2023, the council employed 287 people of which the overall gender split is 53% female and 47% male employees. The gender split varies across the different service areas of the council.
4 Risk
4.1 It is against the law to fail to report gender pay gap data by the deadline.
4.2 The Equality and Human Rights Commission (EHRC) may take enforcement action if the data is not reported on time, or the report includes inaccurate data. This can lead to court orders and fines.
4.3 There is also the potential for reputational damage to the council for failure to report the gender pay gap date. Organisations that fail to report and publish their data are issued with a ‘late badge’ on the gender pay gap service. The late badges are visible to the public.
5 Erewash Borough Council Gender Pay Gap Data Results as of 31 March 2023
EREWASH BOROUGH COUNCIL 2023 - 2024 GENDER PAY GAP DATA
| HOURLY RATE | MEAN | MEDIAN |
|---|---|---|
| WOMEN’S HOURLY RATE IS | 12.70% LOWER | 1.13% LOWER |
| Sex | Male | Female |
|---|---|---|
| TOP QUARTILE | 60.00% | 40.00% |
| UPPER MIDDLE QUARTILE | 37.14% | 62.86% |
| LOWER MIDDLE QUARTILE | 28.57% | 71.43% |
| LOWER QUARTILE | 57.14% | 42.86% |
| 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 12.70% lower than for men. In addition, the median figure for women is 1.13% 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 (60%) in the top quartile of pay than females (40%). In line with the previous year, it is also noted that there are more men in the lower quartile than women.
5.2 It is noted that the mean figure has increased by 2.3% in 2023 (12.7%) in comparison to the result in 2022 (10.4%). The median figure has also increased to 1.13% in 2023 from 0.2% in 2022.
5.3 The hourly rate for the mean figures is £16.93 for males and £14.78 for females.
5.4 The hourly rate for the median figures is £13.32 for males and £13.17 for females. It is noted, this represents a greater reduction of the median hourly rate for females (£0.15) compared to the previous year (£0.03).
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 Our Recruitment Policy and Pay Policies provide a robust framework structure to ensure consistent, equal and fair practices to avoid discrimination on gender grounds.
5.7 The reported variations do not give cause or concern regarding pay rates across male and female. Our Job Evaluation, pay and grading structure provides for a fair and consistent pay mechanism that equally applies to male and female employees. Our recruitment process is built on appointment on merit and quality with no gender bias.
5.7 The next report will be based on pay and staffing data on 31 March 2024 and the deadline for publishing that report is 30 March 2025.