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Employee Benefits News

Latest News
07 Mar 2016

UK gender pay gap remains higher than OECD average

Despite having reduced since 2000, new research has found that the UK gender pay gap is still higher than the OECD average, the Economia website reports.

According to PwC´s Women in Work index, the UK still has the 21st largest pay gap out of the 33 OECD countries. What´s more, further research by recruitment firm Robert Half found that there is currently a 24% gap – or £5,732 – in annual salaries between men and women, meaning that over the course of their working lives women can expect to earn £300,000 less than their male counterparts.

The same research revealed that gross annual earning for women grew by just 1.4% between 2014 and 2015, while the men´s equivalent grew by 1.6%. And last year, the average gross pay for a full-time male employee was £29,934, compared with £24,202 for a full-time female employee.

Closing the gender pay gap, says PwC, could increase female earnings by £80 billion – the equivalent of a £5,500 pay rise for every British woman working full-time.

In addition to this, if the UK were to increase the female employment rate to match Sweden – the highest performing country – its gross domestic product would be boosted by a massive £170 billion.

Commenting on the figures, PwC´s head of people Gaenor Bagley said that the “low number of women in senior positions” was one of the most fundamental reasons why the UK gender pay gap remains so high.

Meanwhile Katy Tanner, director of Robert Half, noted that: “Creating a diverse talent pool is becoming more of a priority as the skills shortage heats up and business leaders focus on attracting and retaining talent.”

With International Women´s Day approaching, she added that now was the perfect time to “highlight the importance for rewarding all employees fairly on the basis of their contribution to the organisation, rather than their gender or indeed any other point of difference.”

Copyright © M2 Bespoke 2016

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