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September 28, 2013 By Constance Hall Leave a Comment

When pay equality laws really mean a 10% gender gap

Equality backslappers are queuing up to praise each other over the latest statistics showing the gender pay gap has narrowed.

Unions, management organisations and equality bodies are all celebrating that the difference between men and women’s pay is closing, according to the latest figures from the Office of National Statistics.

Any improvement in pay disparity between men and women is to be cheered – but does the gap closing to less than 10% after 40 years of legislation and campaigning merit such exuberance?

The figures show men’s full time median hourly earnings grew by 0.8% to £13.11, up from £13.00 in 2010.

For women, hourly earnings were £11.91, a 1.9% increase compared with £11.69 the previous year.

The full time gender pay gap decreased from 10.1% to 9.1%.

Kay Carberry, of the Equality and Human Rights Commission, said: “Forty years after the introduction of the Equal Pay Act, today’s figures are a step in the right direction. But we can’t be complacent – as the gap is still there.

“One way to help narrow it would be by removing the secrecy surrounding equal pay. It will help if employers take up the government’s guidance on measuring and reporting their gender pay gap.”

According to equal pay rules, men and women doing equal work or work rated as of equal value should have equal pay.

Employers must give men and women equal pay and conditions if they have:

  • ‘like work’ – work that is the same or broadly similar
  • work rated as equivalent under a job evaluation study
  • work of equal value.

A woman has ‘like work’ with a man if her work is of the same or a broadly similar nature.

Petra Wilton, director of policy at the Chartered Management Institute, said: “It is fantastic news to hear positive steps towards pay equality are being made as women in their 20s achieve pay parity. However it is important not to forget that at a more senior level there are still frequent occurrences of men being paid substantially more than women undertaking comparable roles.”

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