Ethnicity pay reporting is one of the tools employers can use to build transparency and trust among their employees.
The UK workforce is becoming increasingly diverse but there is still more to be done to remove barriers to entering the labour market and to ensure pay and progression in the workplace is fair for all ethnic groups.
Data has shown there are wide variations in gross earnings between ethnic groups. Some ethnic minority groups earn less per hour than white British employees on average, while others earn more.
It is already a statutory requirement for employers with at least 250 employees to measure and report gender pay gaps. While ethnicity pay reporting is voluntary, many employers already report on their ethnicity pay data.
Ethnicity pay reporting is one of the tools employers can use to build transparency and trust among their employees.
New government guidance explains how employers can report on their ethnicity pay and in particular how to:
- collect employees’ ethnicity data
- gather the required payroll data for ethnicity pay calculations
- make ethnicity pay calculations
- analyse and understand the results of these calculations
- develop an action plan to address any identified disparities
The aim of the guidance is to develop a consistent, methodological approach to ethnicity pay reporting, which can then lead to meaningful action, while remaining proportionate and without adding undue burdens on business.
TUC: Ministers must bring in mandatory ethnicity pay gap reporting “without delay”
Commenting on new ethnicity pay gap guidance and advice for employers published by the government today (Monday), TUC General Secretary Paul Nowak said:
“The harsh reality is that even today, structural racism plays a big role in determining Black workers’ pay and career prospects.
“Too often BME workers are paid less for doing the same job as their white colleagues.
“Ministers must take bold action to confront inequality and racism in the labour market. The obvious first step is mandatory ethnicity pay gap reporting – not just voluntary guidance.
“And alongside publishing the raw data, every employer should have to publish an action plan setting out how they will close their pay gap. That will really drive more equal workplaces.
“Business and unions are united in their support for compulsory pay gap monitoring. Ministers must bring it in without delay.”
PAYadvice.UK 18/4/2023
