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Gender Pay Gap Formula:
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The gender pay gap measures the difference between men's and women's average earnings, typically expressed as a percentage of men's earnings. It highlights disparities in compensation that may be influenced by various factors including discrimination, occupational segregation, and work experience.
The calculator uses the standard gender pay gap formula:
Where:
Explanation: This calculation shows what percentage less women earn compared to men in equivalent positions or across an organization.
Details: Calculating the gender pay gap is essential for identifying pay disparities, promoting workplace equality, ensuring legal compliance with equal pay regulations, and fostering a diverse and inclusive work environment.
Tips: Enter the average male pay and average female pay in the same currency. Both values must be positive numbers, with male pay greater than zero.
Q1: What is considered a significant gender pay gap?
A: While zero is ideal, any gap above 5% typically warrants investigation into potential causes and corrective measures.
Q2: Does this calculation account for different roles or experience levels?
A: This is a raw gap calculation. For more detailed analysis, adjusted pay gap calculations that account for factors like role, experience, and education may be needed.
Q3: How often should organizations calculate their gender pay gap?
A: Most organizations calculate annually to track progress and identify trends over time.
Q4: Are there legal requirements for gender pay gap reporting?
A: Many countries have legislation requiring certain employers to calculate and report their gender pay gap. Requirements vary by jurisdiction.
Q5: What actions can reduce gender pay gaps?
A: Strategies include pay transparency, standardized salary ranges, blind recruitment processes, regular pay audits, and leadership commitment to equity.