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Small companies should publish gender pay gap, say MPs

Companies with more than 50 employees should publish data on gender pay gaps by 2020, a new report from the business, energy and industrial strategy committee has stated.

The MPs said the reporting should be widened from the existing requirements for companies with more than 250 employees, as there is evidence the pay gap is higher in smaller businesses.

The report recommends that organisations should also be required to publish an explanation of any gender pay gap and an action plan for closing the gap, against which they must report progress each year, as part of normal reporting requirements.

The report found that 78% of organisations are currently reporting gender pay gaps in favour of men, and 1,377 employers (13% of total) have gender pay gaps in favour of men of more than 30%.

“Gender pay reporting has helped to shine a light on how men dominate the highest paid sectors of the economy and the highest paid occupations within each sector,” said Rachel Reeves, MP and chair of the committee. “Our analysis found that some companies have obscene and entirely unacceptable gender pay gaps of more than 40%.

“Transparency on gender pay can only be the first step. The gender pay gap must be closed, not only in the interests of fairness and promoting diversity at the highest levels of our business community, but also to improve the country’s economic performance and end a monstrous injustice.”

Read Drapers’ in-depth look into the next steps for the fashion retail industry’s gender pay gap here.



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