Guidance

Ethnicity pay reporting: guidance for employers

Guidance for employers on how to measure, report on and address any ethnicity pay differences within their workforce.

• From: Race Disparity Unit, Equality Hub, Department for Business and Trade and The Rt Hon Kemi Badenoch MP
• Published: 17 April 2023
• Last updated: 26 May 2023 — See all updates

This was published under the 2022 to 2024 Sunak Conservative government

Documents

Introduction and overview

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Understanding and reporting your data

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Collecting ethnicity data

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Preparing your payroll data

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Making your calculations

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Details

This guidance has been developed to help employers who wish to analyse and report on their ethnicity pay. This is in response to action 16 from Inclusive Britain.

Ethnicity pay reporting is one of the tools employers can use to build transparency and trust among their employees. We want to help those employers who want to report their ethnicity pay data by providing a consistent approach that they can follow, which will allow for meaningful comparisons.

This guidance includes advice on:

• collecting ethnicity pay data for employees
• how to consider data issues such as confidentiality, aggregating ethnic groups and the location of employees
• the recommended calculations and step by step instructions on how to do them
• reporting the findings
• further analysis that may be needed to understand the underlying causes of any disparities
• the importance of taking an evidence-based approach towards actions

Published 17 April 2023
Last updated 26 May 2023 + show all updates

1. 26 May 2023

   Updated content on hourly pay quarters in the 'Making your calculations' section. The change confirms that employees who ‘prefer not to say’ or do not respond to a question about their ethnicity should be part of the hourly pay quarters calculation.

2. 17 April 2023

   First published.