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Essential points

  • In UK law, many large employer organisations are required to report their gender pay gap annually. Reporting non-compliance comes with penalties and may have an adverse impact on an employer’s reputation.
  • The CIPD defines the gender pay gap as “a measure of labour market or workplace disadvantage, expressed in terms of a comparison between men’s and women’s average (median) hourly rates of pay. It’s about pay, but also about other factors”. 
  • Specific organisations have additional reporting obligations aimed at ensuring greater pay transparency and progressing equality, particularly those in the public sector, or in industries where governing bodies or regulatory authorities may require this (for example, listed companies and those in the financial services sector).    
  • Organisations must be aware of further legal requirements operating across Europe and in other countries in which they operate and have staff.  
  • The guidance issued below relates to gender pay gap reporting in England, Scotland and Wales. 

The Employment Rights Act 2025 will, when the relevant provisions come into force, make it compulsory for employers with 250+ employees to develop and publish equality action plans as well as publish gender pay gap information about service providers they contract with for outsourced services. Keep up to date with the latest on these changes with our tracker of potential law changes. We will update this page once any changes are enforced.

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Disclaimer 

​Please note: While every care has been taken in compiling this content, CIPD cannot be held responsible for any errors or omissions. These notes are not intended to be a substitute for specific legal advice. 

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