Member tool: CIPD Buddy AI AI
Use AI to find trusted answers on our Knowledge hub. Start using CIPD Buddy AI

Essential points

  • In UK law, many employer organisations are required to report their gender pay gap annually. Non-compliance comes with penalties and may have an adverse impact on an employer’s reputation.
  • The CIPD defines the gender pay gap as “a measure of labour market or workplace disadvantage, expressed in terms of a comparison between men’s and women’s average (median) hourly rates of pay. It’s about pay, but also about other factors”.
  • Specific organisations have additional reporting obligations aimed at ensuring greater pay transparency and progressing equality, particularly those in the public sector, or in industries where governing bodies or regulatory authorities may require this (for example, listed companies and those in the financial services sector).
  • Organisations must be aware of further legal requirements operating across Europe and in other countries in which they operate and have staff.  
    The guidance issued below relates to gender pay gap reporting in England, Scotland and Wales.
  • When reporting gender pay gap information, employers must use figures which relate to the biological sex of their employees. 
  • The Employment Rights Act 2025 will make it compulsory for employers with 250+ employees to develop and publish employer action plans as part of gender pay gap reporting. This requirement is expected to come into force in 2027, with voluntary publication being encouraged from 6 April 2026. The Act also allows for regulations to be made to require that outsourced individuals be included in pay reports. It is expected that these regulations will be made in 2027. Keep up to date with the latest on these changes with our tracker of potential law changes. We will update this page once any changes are in force. 

Content

To continue reading, log in or become a member

Affiliate membership offers instant access to CIPD resources without the need for assessments or study, or explore your options to become a professional member of the CIPD to demonstrate your commitment to the world of work.

  • Access to exclusive, up-to-date resources
  • Become part of a community to learn, debate and connect with other people professionals
  • Free access to a series of CIPD learning courses and a discount on the rest of our catalogue
Instant access Explore membership

Disclaimer 

​Please note: While every care has been taken in compiling this content, CIPD cannot be held responsible for any errors or omissions. These notes are not intended to be a substitute for specific legal advice. 

Employment
law advice

Want more employment law advice? Members can phone the CIPD legal helpline or take out a discounted subscription to HR-inform for additional resources.

Employment law helpline HR-inform
Callout Image
  • Factsheet

    Strategic reward and total reward

    Outlines the main characteristics of strategic and total reward, and looks at designing and implementing a reward strategy across the organisation

    For Members
    • Employment law
  • Employment law

    Dismissal: UK employment law

    Explore our collection of resources on fair and unfair dismissal and laws around wrongful dismissal. This resource includes common questions and answers plus relevant case law

    For Members