Question

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

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Answer

Equal pay is a legal right to the same pay for the same or equivalent work; the gender pay gap is a statistical measure of average earnings across a whole workforce. An organisation can comply fully with equal pay law and still report a large pay gap — and that combination is entirely normal rather than contradictory.

Equal pay. Under the Equality Act 2010, a person is entitled to equal pay with a comparator of the opposite sex employed by the same employer doing:

Like work — the same or broadly similar work.

Work rated as equivalent under a job evaluation scheme.

Work of equal value — different jobs judged equal in demands such as effort, skill and decision-making. This is the most significant and the least understood, because it allows comparison between entirely different roles, which is how large public sector claims have been brought — comparing predominantly female roles such as catering and cleaning with predominantly male roles such as refuse collection at the same grade.

The employer's defence is a material factor genuinely explaining the difference and not tainted by sex discrimination.

The gender pay gap. The difference between the average earnings of men and women across an organisation, expressed as a percentage. Reported as both mean and median, because they reveal different things: a small number of very high earners distorts the mean, so the median is generally the more robust figure.

What causes a gap despite equal pay compliance:

Occupational distribution — more men in higher-paid roles and more women in lower-paid ones within the same organisation. This is the dominant driver.

Seniority distribution, with fewer women at senior levels.

Part-time working, which is more common among women and is concentrated in lower-paid roles.

Career interruptions for caring, which affect progression cumulatively.

Bonus structures, reported separately for exactly this reason.

The reporting requirement. Employers in Great Britain with 250 or more employees must publish specified figures annually — mean and median gaps in hourly pay and bonuses, the proportion receiving bonuses, and the distribution across pay quartiles.

Publication alone does not require action, which is a recurring criticism, though many employers publish a narrative and action plan voluntarily.

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