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Gender pay gap details to include bonuses Gender pay gap details to include bonuses
(35 minutes later)
Larger employers will have to publish the amount men and women are awarded in bonuses as part of proposed legislation to reduce the gender pay gap.Larger employers will have to publish the amount men and women are awarded in bonuses as part of proposed legislation to reduce the gender pay gap.
The planned regulations will apply to businesses in England, Wales and Scotland with more than 250 employees.The planned regulations will apply to businesses in England, Wales and Scotland with more than 250 employees.
The Chartered Management Institute said the new legislation would "force transparency" on companies.The Chartered Management Institute said the new legislation would "force transparency" on companies.
The TUC said the measures should include medium-sized businesses and come with fines for non-compliance.The TUC said the measures should include medium-sized businesses and come with fines for non-compliance.
The new legislation will also mean the public sector will have to publish gender pay information in line with employers in the private and voluntary sectors, who already have to do so. The plan on bonuses is the first of a number of "equality-boosting measures" to be set out in detail this week and hopefully introduced in the first half of 2016, according to Downing Street.
The government also wants to see women on the boards of all the UK's top 350 companies. Other steps also include:
'Bias can creep in' Details of exactly what companies must publish and when the scheme will begin will be announced after the results of a consultation, which concluded in September, are published.
Latest figures show overall women in the UK earn 19% less than men. 'Concentrate minds'
More than 10 million workers will be covered by the new transparency rules - although far fewer than that receive bonuses.
The measures are contained in the Equality Act 2010, introduced by Labour but blocked from implementation by the Conservatives until now.
Latest figures show that, overall, women in the UK earn 19% less than men.
Up to the age of 40, there is very little difference between the earnings of men and women.Up to the age of 40, there is very little difference between the earnings of men and women.
But beyond that age, when more women are likely to have taken time out to raise families and work part-time, there is a significant gap.But beyond that age, when more women are likely to have taken time out to raise families and work part-time, there is a significant gap.
Women and equalities minister Nicky Morgan said business had made progress but it should "appal us" that, 100 years on from the suffragette movement, "we still don't have gender equality in every aspect of our society". TUC general secretary Frances O'Grady said publishing salary and bonus information was a "start" - but employers needed to look at why women were still being paid less than men and "do something meaningful about it".
Women and equalities minister Nicky Morgan told the BBC's Andrew Marr programme said legislation to force reporting of remuneration was "a first step", but would help "concentrate minds".
She added: "When companies see the gender pay gap in their own company, of their employees, including bonuses, that does start to change behaviours, it [starts] the conversations in the company."
Chartered Management Institute chief executive Ann Francke said bonus gaps were "one of the biggest drivers" of gender pay discrepancy, particularly at senior levels.Chartered Management Institute chief executive Ann Francke said bonus gaps were "one of the biggest drivers" of gender pay discrepancy, particularly at senior levels.
"Bonuses are also where gender bias can creep in easily as they are amongst the least transparent forms of pay," she said."Bonuses are also where gender bias can creep in easily as they are amongst the least transparent forms of pay," she said.
"There's a tendency to reward those in our own image or to think that because men may be the 'main breadwinners' they deserve higher bonuses."There's a tendency to reward those in our own image or to think that because men may be the 'main breadwinners' they deserve higher bonuses.
"And men often negotiate harder or trumpet their achievements more readily.""And men often negotiate harder or trumpet their achievements more readily."
She told BBC Radio 5 Live the new legislation would mean many companies were going to say, "I didn't know we had a problem but we do". She told BBC Radio 5 Live the new legislation would mean many companies were going to say, "I didn't know we had a problem but we do."
She also said that while some pay discrepancies were down to women taking a more flexible approach to their careers, "that should not derail those careers, and nor should it impact their pay when they are in those full-time roles".
'Guaranteed rights''Guaranteed rights'
CBI director for employment and skills Neil Carberry said eradicating the gender pay gap was an important goal, but reporting must be "relevant to each company rather than a box-ticking exercise".
TUC general secretary Frances O'Grady said publishing the information was a "start" - but employers needed to look at why women were still being paid less than men and "do something meaningful about it".
In July, Prime Minister David Cameron pledged to end the gender pay gap within a generation, but Labour called for "action not words" on equality.In July, Prime Minister David Cameron pledged to end the gender pay gap within a generation, but Labour called for "action not words" on equality.
Shadow women and equalities minister Kate Green said the gender pay gap was nearly 20% above the European average.Shadow women and equalities minister Kate Green said the gender pay gap was nearly 20% above the European average.
"British women don't need warm words - we need guaranteed rights at work, properly enforced.""British women don't need warm words - we need guaranteed rights at work, properly enforced."
Sophie Walker, of the Women's Equality Party, pointed out that the Equal Pay Act was 45 years old. CBI director for employment and skills Neil Carberry said eradicating the gender pay gap was an important goal, but reporting must be "relevant to each company rather than a box-ticking exercise".
"So it's terribly important that the government gets on with this... so we can actually get this antiquated and not terribly helpful piece of legislation to work the way it was supposed to."
What are your experiences when it comes to the gender pay gap? Email haveyoursay@bbc.co.uk with your stories. If you are happy to speak to a BBC journalist, please include contact details. If you are happy to have your story featured, please also include a picture of yourself to help us illustrate our story. It must be your own copyright.What are your experiences when it comes to the gender pay gap? Email haveyoursay@bbc.co.uk with your stories. If you are happy to speak to a BBC journalist, please include contact details. If you are happy to have your story featured, please also include a picture of yourself to help us illustrate our story. It must be your own copyright.
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