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How is the gender pay gap calculated?

Modified on Tue, 10 Dec, 2024 at 2:24 PM

How is the Gender Pay Gap calculated?

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The Mean Gender Pay Gap

Firstly, the mean hourly rate for full pay females and males is calculated. The gap is then calculated by:
 
 
 

 

The Median Gender Pay Gap

Firstly, the median hourly rate for full pay females and males is calculated. The gap is then calculated by:
 

The Mean Bonus Gender Pay Gap
Firstly, the mean annual bonus for all females and males in receipt of a bonus within the year, is calculated. The gap is then calculated by:
 
 
The Median Bonus Gender Pay Gap
 
 
 
Firstly, the median bonus for all females and males in receipt of a bonus within the year, is calculated. The gap is then calculated by:
 
The Proportion of Males and Females Receiving a Bonus Payment
Firstly, the number of females and the number of males in receipt of bonus within the year, is calculated.
The proportions are then calculated as:
The Proportion of Males and Females in Each Quartile Band
Firstly, all full pay employees are ranked according to their hourly rate from lowest to highest. The employees are then split into four quartiles, each with an equal number of employees (albeit that there may be quartiles with an additional employee where the total number of employees does not divide by four).
 
If there are a number of employees on the exact same hourly rate of pay crossing between two of the quartiles, the males and females are split as fairly as possible across the quartiles.
The proportions for each quartile are then calculated as:
 
 
 
 
 
 

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