What is the difference between the gender pay gap and equal pay?

While both equal pay and the gender gap deal with the difference (disparity) in pay women receive in the workplace, they are two different issues:

Equal pay:

Means that men and women in the same employment performing equal work must receive equal pay, as set out in the Equality Act 2010.

Gender pay gap:

Is a measure of the difference between men’s and women’s average earnings across an organisation or the labour market. It is expressed as a percentage of men’s earnings.

In the Britain, there is an overall gender pay gap of 18.1%. 

The causes of the gender pay gap are complex and can be overlapping. Factors include:

Highest paid sectors are male-dominated

Girls often do well at school, but tend to end up concentrated in employment sectors that offer narrower scope for financial reward. On the other hand, many of the highest paying sectors are disproportionately made up of male employees.

The effect of part-time work

The difference in years of experience of full-time work, or the negative effect on wages of having previously worked part-time or of having taken time out of the labour market to look after family.

Stereotyping

Unconscious stereotyping, with assumptions about women not wanting to accept promotion, or not being in a position to do so, particularly where they have caring responsibilities. Women make up 47% of the workforce, but only 35% of managers, directors and senior officials.

Gender pay gap reporting

See our guidance on gender pay gap reporting to find out what the requirements are, who they apply to and what you need to do.