Gender pay gap reporting has been a legal requirement for qualifying employers in Great Britain since 2017. Despite this, many organisations, (particularly those approaching the relevant headcount threshold) remain uncertain about their obligations: whether they are required to report, what data they must publish, and by when.
This article sets out the regulatory framework clearly. It covers the legal basis, the criteria that determine which employers must comply, the specific data employers must calculate and publish, and the consequences of non-compliance.
The Legal Basis for Gender Pay Gap Reporting
Gender pay gap reporting requirements in Great Britain are set out in the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017. These regulations apply separately to private and voluntary sector employers on the one hand, and to public sector employers on the other, though the substantive requirements are broadly similar.
The regulations require qualifying employers to calculate and publish specific pay metrics each year, based on a snapshot of their workforce taken on a fixed date. This snapshot date differs depending on the sector:
- Private and voluntary sector employers: 5 April each year
- Public sector employers: 31 March each year
Published data must be submitted to the government’s gender pay gap reporting service and also published on the employer’s own website. The deadline for submission is 12 months from the snapshot date—meaning private sector employers must publish by 4 April each year.
Which Employers Must Report Their Gender Pay Gap?
The reporting obligation applies to any employer with 250 or more relevant employees in Great Britain on the snapshot date. This threshold is assessed on a headcount basis and applies regardless of whether the employer is a single legal entity or part of a wider group.
The 250-Employee Threshold: What Counts?
An employee is counted as ‘relevant’ for threshold purposes if they are employed under a contract of employment on the snapshot date and are ordinarily working in Great Britain. This definition excludes:
- Workers engaged under contracts for services (i.e. self-employed contractors)
- Employees who are ordinarily based outside Great Britain
- Partners in limited liability partnerships (LLPs), although LLPs with 250 or more employees (rather than members) must still report
Employees on leave—including those on maternity, paternity, adoption, or sick leave—are included in the headcount for threshold purposes, even if they receive reduced or no pay during that period.
Key Point: Each legal entity within a group must assess the threshold independently. A parent company and its subsidiaries are treated as separate employers for gender pay gap reporting purposes. There is no consolidation of employee numbers across a group. This means a group with 1,000 employees across four subsidiaries of 250 each would see all four entities report separately—not just the group as a whole.
Organisations That Are Voluntarily Reporting
Employers with fewer than 250 employees are not legally required to report. However, the government encourages voluntary reporting among smaller organisations, and some choose to do so as part of broader equality, diversity, and inclusion commitments. Voluntary submissions follow the same methodology and are submitted through the same government reporting service.
Choosing to report voluntarily can be beneficial for employer reputation and can signal a proactive approach to pay transparency; it also creates a public record that will be scrutinised alongside larger employers’ data.
What Data Must Be Calculated and Published?
Employers are required to calculate and publish six specific metrics. These metrics are set out in the regulations and must be calculated using a defined methodology. Using an alternative approach—even one that produces a more accurate or meaningful result—does not satisfy the legal requirement.
The Six Required Gender Pay Gap Metrics
- Mean gender pay gap in hourly pay The difference between men’s and women’s mean (average) hourly pay, expressed as a percentage of men’s mean hourly pay.
- Median gender pay gap in hourly pay The difference between the median hourly pay of men and women, expressed as a percentage of men’s median hourly pay. The median figure is often considered a more reliable indicator of typical pay differences across the workforce.
- Mean bonus gender pay gap The difference between men’s and women’s mean bonus pay over the 12-month period ending on the snapshot date.
- Median bonus gender pay gap The difference between men’s and women’s median bonus pay over the same 12-month period.
- Proportion of men and women receiving a bonus The percentage of male employees and the percentage of female employees who received bonus pay during the 12-month period.
- Proportion of men and women in each pay quartile The workforce is divided into four equal quartiles based on hourly pay, from lowest to highest. The percentage of men and women in each quartile must be reported. This metric helps illustrate whether pay differences are driven by the distribution of men and women across seniority levels.
What Counts as ‘Pay’ for Reporting Purposes?
The regulations specify what must be included and excluded from the pay calculation. Ordinary pay includes basic pay, allowances, pay for piecework, pay for leave, and shift premium pay. It excludes overtime pay, expenses, the value of salary-sacrifice arrangements, benefits in kind, and redundancy pay.
Only employees who are receiving full pay during the pay period that includes the snapshot date are included in the pay gap calculations (though all employees are counted for threshold purposes). Employees on reduced or nil pay — for instance, due to maternity or sick leave — are excluded from the hourly pay calculations but remain in the headcount.
Practical Note: Employees on Leave An employee on maternity leave receiving statutory maternity pay only would be excluded from the pay gap calculations but included in the headcount. An employee returning from leave and receiving full pay during the relevant pay period would be included in both. This distinction can meaningfully affect reported figures in organisations with a high proportion of employees on leave around the snapshot date.
How and Where Must the Data Be Published?
Employers must publish their gender pay gap data in two places:
- On their own website in a manner that is accessible to employees and the public, and retained for at least three years.
- On the government reporting service, gender-pay-gap.service.gov.uk, which makes the data publicly available alongside all other reporting employers.
In addition to the six metrics, employers must include a written statement confirming that the information is accurate, signed by a responsible person. For companies, this is typically a director. For LLPs, it is a designated member. For public bodies, it depends on the specific governance structure.
There is no requirement to include a narrative explanation alongside the published figures, though many employers choose to do so. A narrative can provide context—for example, explaining that a pay gap reflects the distribution of roles rather than unequal pay for equal work—and can be an important part of communicating the data to employees, candidates, and the public.
The Consequences of Non-Compliance
Failing to report on time, or publishing inaccurate data, carries reputational and regulatory risk. The Equality and Human Rights Commission (EHRC) is responsible for enforcing compliance and has the power to investigate employers who fail to report or who submit figures that appear to be incorrect.
The EHRC can issue compliance notices and, ultimately, pursue court action. While financial penalties are not directly specified in the regulations themselves, breaches of a compliance notice may lead to an unlimited fine. More significantly, failure to report is a matter of public record. The government reporting service flags employers who have not submitted data, and this information is accessible to employees, journalists, investors, and prospective candidates.
| Risk | Detail |
|---|---|
| Reputational damage | Publicly flagged as non-compliant on the government service |
| EHRC investigation | Formal inquiry and potential compliance notice |
| Court enforcement | Potential for unlimited fines for breach of compliance notice |
| Talent and recruitment impact | Non-compliance may deter candidates and affect staff confidence |
Preparing for Gender Pay Gap Reporting: A Practical Checklist
Organisations approaching the reporting deadline or assessing compliance for the first time should work through the following steps:
- Confirm your snapshot date and submission deadline (5 April / 4 April for private sector; 31 March / 30 March for public sector).
- Assess your headcount on the snapshot date and determine whether your organisation meets the 250-employee threshold.
- Identify which employees are receiving full pay during the relevant pay period, and which are on reduced or nil pay and therefore excluded from pay calculations.
- Extract pay data for the relevant pay period, including ordinary pay, allowances, and bonus pay from the preceding 12 months.
- Calculate the six required metrics using the methodology prescribed by the regulations.
- Obtain a signed written statement from the appropriate responsible person confirming accuracy.
- Publish on your website in an accessible location and submit via the government reporting service.
- Consider whether a narrative statement is appropriate to provide context for your published figures.
Speak to a Specialist About Your Gender Pay Gap Reporting Obligations
Gender pay gap reporting is a fixed legal obligation for qualifying employers, and the methodology prescribed by the regulations is specific. Errors in calculation—whether in identifying relevant employees, applying the correct pay definition, or using the wrong snapshot date—can result in inaccurate published data and the regulatory and reputational consequences that follow.
For organisations approaching the 250-employee threshold for the first time, or those looking to improve the accuracy and efficiency of their reporting process, getting the underlying payroll data right is the starting point. Accurate, well-structured payroll records are the foundation of a reliable gender pay gap submission.
At Just Payroll Services, our specialists work with employers across a range of sectors and sizes to ensure payroll data is accurate, compliant, and readily available when reporting deadlines approach. If you would like to find out how our payroll services can support your organisation’s compliance requirements, please contact our team or explore our services.