1 April 2022 to 31 March 2023

Parameters and Calculations

What will I have to calculate and publish?

Relevant employers must follow the rules in the regulations to calculate the following information:

• their mean gender pay gap
• their median gender pay gap
• their mean bonus gender pay gap
• their median bonus gender pay gap
• their proportion of males receiving a bonus payment
• their proportion of females receiving a bonus payment
• their proportion of males and females in each quartile pay band
• a written statement, authorised by an appropriate senior person, which confirms the accuracy of their calculations. However, this requirement only applies to employers subject to the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017

Steps for extracting essential information

STEP 1
Full list of relevant employees from SAP then establish full-pay relevant employees.

(Relevant employees are all employees employed by the employer on the snapshot date of a given year, except for partners.)
(This term includes full-pay relevant employees and also other employees employed on the snapshot date but on less than full pay because of leave.)

STEP 2
Identify for each full pay relevant employee if male or female.

STEP 3
Extract a list of all bonuses received in the relevant bonus period for all relevant employees and full-pay relevant employees.

The bonus period is a twelve-month period that ends on the snapshot date.

STEP 4
Record all ordinary pay received in the relevant pay period for full-pay relevant employees only. (Ordinary pay is defined in regulation 3. It includes basic pay, allowances, pay for piecework, pay for leave and shift premium pay. It only includes money payments, so anything that is not money (such as benefits in kind or securities) is excluded. Gross amounts should be used after salary sacrifice).

Ordinary pay does not include pay related to overtime, redundancy, or termination of employment, pay in lieu of annual leave, or pay which is not money. As well as actual ‘overtime pay’, payments such as allowances earned during paid overtime hours (to the extent that employers can clearly identify them) should be excluded from ordinary pay.

The relevant pay period is the pay period within which the snapshot date falls. In practice, this means the pay period in which 31 March falls (for employers subject to the Specific Duties Regulations).

STEP 5
Record the weekly working hours for full-pay relevant employees only.

STEP 6
Record the ‘hourly pay’ for full-pay relevant employees only.

(To find the hourly pay, first add the employee’s bonuses identified in 4 above, to their ordinary pay identified in 5 above.

Next, multiply this amount by ‘the appropriate multiplier’. This is 7 divided by the number of days in the pay period.

This provides a weekly pay figure for the relevant pay period.

Finally, divide this amount by the employee’s number of weekly working hours identified in 6 above.

Keep in mind that the regulations specify that where periods are calculated in months, a month is treated as having 30.44 days, and where periods are calculated as a year, a year is treated as having 365.25 days).

The calculations

These calculations make use of two types of averages:

1. a mean average involves adding up all of the numbers and dividing the result by how many numbers were in the list.
2. a median average involves listing all of the numbers in numerical order. If there is an odd number of results, the median average is the middle number. If there is an even number of results, the median will be the mean of the two central numbers.

Using these two different types of average is helpful to give a more balanced overview of an employer’s overall gender pay gap:

• mean averages are useful because they place the same value on every number they use, giving a good overall indication of the gender pay gap, but very large or small pay rates or bonuses can ‘dominate’ and distort the answer.
• for example, mean averages can be useful where most employees in an organisation receive a bonus but could be less useful in an organisation where the vast majority of bonus pay is received by a small number of board members.
• median averages are useful to indicate what the ‘typical’ situation is i.e. in the middle of an organisation and are not distorted by very large or small pay rates or bonuses. However, this means that not all gender pay gap issues will be picked up. For example, a median average might show a better indication of the ‘middle of the road’ pay gap in a sports club with a mean average distorted by very highly paid players and board members, but it could also fail to pick up as effectively where the pay gap issues are most pronounced in the lowest paid or highest paid employees.

For the results of the calculations:

• a positive percentage figure (which almost all organisations are likely to have) reveals that typically or overall, female employees have lower pay or bonuses than male employees.
• a negative percentage figure (which some organisations may have) reveals that typically or overall, male employees have lower pay or bonuses than female employees.
• a zero percentage figure (which is highly unlikely, but could exist for a median pay gap where a lot of employees are concentrated in the same pay grade) would reveal no gap between the pay or bonuses of typical male and female employees or completely equal pay or bonuses overall.

Kent Police – Analysis of inclusion for ordinary pay

Pay – Basic pay

• allowances
• car allowance
• SE allowance
• housing allowance
• weekend working enhancement
• shift allowance
• travel allowance
• fringe allowance
• market supplements

Exclusions

• maternity pay (unpaid)
• paternity (paid)
• sick pay (long term)
• dependants leave (PSE)
• adoption leave
• career break

Information to be included in GPG Report

The difference between the mean hourly rate of pay for male and female employees expressed as a percentage

Only full pay employees are included in this calculation (see 9 g).
The percentage must be calculated:
___(A-B) _____ x100
         A
Where A is the mean hourly rate of pay of all male full-pay relevant employees; and B is the mean hourly rate of pay of all female full-pay relevant employees.

The difference between the median hourly rate of pay for male and female employees expressed as a percentage

The percentage must be calculated:
___(A-B) _____ x100
        A
Where A is the median hourly rate of pay of all male full-pay relevant employees; and B is the median hourly rate of pay of all female full-pay relevant employees.

The difference between the mean bonus pay paid to male and female employees over the 12 months ending 5 April expressed as a percentage

The percentage must be calculated:
___(A-B) _____ x100
        A
Where A is the mean bonus pay paid during the relevant period to all male relevant employees who were paid bonus pay during that period; and
B is the mean bonus pay paid during the relevant period to female relevant employees who were paid bonus pay during that period.

Relevant period in this provision means 12 months ending with the snapshot date.

The difference between the median bonus pay paid to male and female employees over the 12 months ending 5 April expressed as a percentage

• step 1: determine the hourly rate of pay for each male and female employee and rank from lowest to highest paid
• step 2: divide the employees into four, each section comprising an equal number of employees to determine the lower, lower middle, upper middle and upper quartile pay bands
• step 3: the proportion of male employees within each quartile band must be expressed as a percentage of the employees within that band as follows:
  
  ___(A-B) _____ x100
          A
  Where A is the number of male employees in a quartile pay band; and
  B is the number of relevant employees in that quartile pay band
• step 4: the proportion of female employees within each quartile band must be expressed as a percentage of the employees within that band as follows:
  ___(A-B) _____ x100
          A
  Where A is the number of female employees in a quartile pay band; and
  B is the number of relevant employees in that quartile pay band.