Corporate report

Equal pay audit 2020: MOD core civilian industrial personnel

Published 26 July 2021

This was published under the 2019 to 2022 Johnson Conservative government

This report presents a comparison by Gender, and Ethnicity, of annualised average salaries in the period 1 April 2019 to 1 April 2020, in order to meet the Department’s obligations under the Public Sector Equality Duty to provide information on its workforce identified by the Equality Act 2010. Further analysis to compare length of service in grade, promotions and length of time to promotion have been conducted to provide possible explanations for differences in pay that may be found between these groups.

Introduction

The Equal Pay Audit (EPA) examines the equality of pay of all non-industrial and industrial personnel by analysing the differences in average basic salary based on Gender. It also conducts the same analyses on Ethnicity and Working status.

The analyses conducted within this report require exclusions. The population in this report consists of MOD Main non-industrial personnel with a current Human Resources Management System (HRMS) record, who are identified as being paid on the CHIPS pay extract as at 1 October 2020. The following exclusions were applied throughout:

  • Defence, Equipment & Support Bespoke Trading Entity (DE&S) personnel
  • Trading Fund and Executive agency personnel
  • Royal Fleet Auxiliary personnel
  • Locally engaged civilians
  • Industrial grades (separate report for these grades)
  • Analogue grades (which include: Ministry of Defence Police, Fire Service, NHS, Teachers, Civilian Medical Practitioners and Civilian Dental Practitioners)
  • Senior Civil Servants and equivalent (those paid above the Band B1 maximum)
  • Personnel for whom no basic salary data is recorded on CHIPS pay extract as at 1 October 2020
  • Personnel for whom required data are missing for other explanatory factors required for these analyses
  • Personnel on Zero pay, not being paid by the MOD as at 1 October 2020, are excluded from salary analysis, but are included within the feeder grades of promotion analysis, due to the fact that someone can be promoted from zero pay into a paid position

Further exclusions in addition to those listed above are made for the promotions analysis:

  • Personnel not substantively promoted between 1 October 2019 to 1 October 2020
  • Personnel promoted into or between Senior Civil Service grades
  • Other personnel whose pay falls outside the pay band scales, such as Apprentices and some Retained grades; although those on broader banded pay scales, such as Fast Streamers are included
  • Personnel who move from a Trading Fund / Executive agency post into a MOD Main post.

To assist anyone who requires historical or additional data, Analysis Civilian publishes Civilian and Armed Forces Personnel data via the MOD Statistics homepage.

Definitions

Average Basic Salary figures for each individual are derived from the basic monthly salary rate they were paid as at 1 October 2020, annualised to assume a whole year at the same salary rate. In order to assure comparability independent of full-time/part-time status, for each individual it represents what they would earn in a full year at the same salary rate with an FTE of 1.

Difference in Average Basic Salary represent the ratio of the percentage difference between the gender averages to the higher of the gender averages.

MOD Main Total

  • Includes: Top Level Budgetary Areas (TLBs)
  • Excludes: Trading funds, Executive agency, DE&S Bespoke Trading Entity, Royal Fleet Auxiliary and Locally engaged civilians.

Black, Asian and Minority Ethnic (BAME): BAME is now the widely used terminology, as a collective descriptor for non-white citizens, across Whitehall, other public sector bodies and the third sector, as well as among civil service race staff networks and their cross-Whitehall umbrella body, the Civil Service Race Forum. See also Ethnic Origin.

Declaration rates: Ethnic background, disability, religion and sexual orientation are self-declared. Therefore, representation rates are calculated from known declarations and exclude unknown and undeclared personnel.

Ethnic origin is the ethnic grouping to which a person has indicated that they belong. The classifications used were revised for the 2011 Census of Population when a classification of nationality was also collected.

Full-time civil servants are those working 37 hours a week (36 hours or over in London), excluding meal breaks.

Industrial personnel are civilian personnel employed primarily in a trade, craft or other manual occupation. This covers a wide range of work such as industrial technicians, air freight handlers, storekeepers, vergers and drivers.

Non-industrial personnel are civilian personnel who are not primarily employed in a trade, craft or other manual labour occupation. This covers a wide range of personnel undertaking work such as administration, analysis, policy, procurement, finance, medical, dental, teaching, policing, science and engineering.

Part-time civil servants are those working fewer than 37 hours a week (36/37 hours in London), excluding meal breaks.

Date comparisons

Data in this report is fully comparable with data for 2016, 2017 and 2018 in terms of MOD Main departments. Since there was a Pay Award delay in last year’s report (2019), data in this report is not fully comparable with the 2019 Equal Pay Audit.

MOD Main does not include Defence, Equipment and Support (DE&S). Since 1 July 2015 DE&S has been reported as a bespoke trading entity. Due to the size and makeup of DE&S, its removal from MOD Main may have an impact on a number of variables which means that direct comparison with outputs prior to 2015 are not consistent.

Abbreviations, Symbols and Conventions

Abbreviations

Abbreviation Complete Phrase or Word
FTE Full Time Equivalent
LoS Length of Service
Diff. Difference
Adj. Adjusted
% Percentage

Symbols

  • (~) fewer than five
  • (*) not applicable and/or data is not of a sufficient size
  • (–) zero or rounded to zero.

All percentages are calculated from headcount totals (part time equivalent to one person), from unrounded figures and are shown to 1 decimal place.

Rounding

Where rounding has been used, totals and sub-totals have been rounded separately and so may not equal the sums of their rounded parts. When rounding to the nearest 10, numbers ending in ‘5’ have been rounded to the nearest multiple of 20 to prevent systematic bias.

Tables

All tables in this publication can be viewed in Excel ODS format here: ODS tables.

Average Annual Basic Salary by Gender and Grade

Average Annual Basic Salary for All Permanent Employees by Gender and Grade

Table A1 shows, for each Skill Zone, the FTE strength, average (arithmetic mean) length of service in grade and average (arithmetic mean) annualised basic salary split by gender. In addition, the gender difference in length of service in grade is presented in years, and the percentage gender difference in average basic salary is given.

Summary

There is no differences between male and female average annual salary for Skill Zones 1 and 2. The difference at Skill Zone 3 is 1.7% in favour of males. However, due to the low number of female personnel at this grade, this average may be exaggerated by outlying values. No pay comparisons based on gender can be made for individuals at Skill Zone 4 due to there being very few females at this grade. Average length of service in grade was broadly comparable for Skill Zone 4 (8.6 years) and Skill Zone 2 (8.8 years) and was highest for Skill Zone 1 at 11.3 years. Within these grades males had a higher length of service at Skill Zone 2 , 3 and 4, with females having a one year higher length of service for Skill Zone 1.

Table A0: Average Length of Service (years) in Grade by MOD Main Broader Banded Non-Industrial Personnel, as at 1 October 2020
Grade Average Males Females
Skill Zone 4 8.6 8.7 2.0
Skill Zone 3 9.7 9.8 8.1
Skill Zone 2 8.8 9.3 7.3
Skill Zone 1 11.3 10.8 11.7
  • Source: Analysis Civilian
  • Overall average per grade excluding gender

Table A1: Average Annualised Basic Salary by Gender and Grade

Grade Skill Zone 4 Skill Zone 3 Skill Zone 2 Skill Zone 1
Headcount * 1,180 1,240 500
Male 190 1,100 950 360
Female ~ 80 280 140
Average FTE 0.99 0.98 0.98 0.97
Male 0.99 0.98 0.98 0.98
Female 1 0.98 0.96 0.94
Average LOS in Grade (years) 8.6 9.7 8.8 11.3
Male 8.7 9.8 9.3 10.8
Female 2.0 8.1 7.3 11.7
Diff. in LOS in Grade (years) 6.7 1.7 2.0 -1.0
Average Basic Salary (£) 25,340 21,290 18,780 17,230
Male 25,340 21,310 18,780 17,230
Female 25,190 20,950 18,780 17,230
Diff. in Average Basic Salary 0.6% 1.7% 0.0% 0.0%
  • Source: Analysis Civilian
  • Salaries have been rounded for presentation purposes
  • Because of rounding, totals may not always equal the sum of the parts

Average Annual Basic Salary for Part-Time Permanent Employees by Gender and Grade

Table A2 shows the same outputs as Table A1, but for part-time personnel. Average basic salary for part-time personnel is presented as annualised in order to be comparable where individuals work widely varying numbers of hours, and is derived from the basic monthly salary as at 1 October 2020 which they would receive if they worked full-time, multiplied by 12 to obtain the current annual basic salary level assuming 1 FTE.

Summary

There is no real difference between male and female average annual salary (differences for Skill Zone 1 and 2 are less than 0.1%), apart from in Skill Zone 3 where there is a large 4.1% difference. However, because there are a very small number of part time female personnel at Skill Zones 3 and 4, no meaningful salary comparisons, or otherwise, can be made at these grades.

Table A2: Average Annualised Basic Salary for Part-Time Permanent Employees by Gender and Grade

Grade Skill Zone 4 Skill Zone 3 Skill Zone 2 Skill Zone 1
Headcount 10 * 90 40
Male 10 40 50 20
Female - ~ 40 20
Average FTE 0.69 0.64 0.7 0.61
Male 0.69 0.62 0.68 0.61
Female 0 0.75 0.72 0.61
Average LOS in Grade (years) 11.0 10.9 10.9 11.3
Male 11.0 11.1 12.5 10.8
Female 0.0 9.2 9.0 11.7
Diff. in LOS in Grade (years) 11.0 1.9 3.5 -1.0
Average Basic Salary (£) 25,470 21,660 18,790 17,230
Male 25,470 21,750 18,790 17,230
Female - 20,890 18,780 17,230
Diff. in Average Basic Salary - 4.1% 0.1% 0.0%
  • Source: Analysis Civilian
  • Salaries have been rounded for presentation purposes
  • Because of rounding, totals may not always equal the sum of the parts

Average Annual Basic Salary by Ethnicity and Grade

Average Annual Basic Salary for All Permanent Employees by Ethnicity and Grade

Table B1 examines the equality of pay of all personnel by analysing the differences in average basic salary by ethnicity.

Summary

The disparity in the annual average salary by ethnicity for Skill Zones 1 to 3 are no more than +/- 0.6%. Given the small numbers of BAME personnel at Skill Zone 4, no comparisons are possible. White personnel have a longer LOS in grade than BAME personnel in all grades other than Skill Zone 3. The difference is lowest (1.3 years) for Skill Zones 2, meaning that any effect of LOS in grade upon salaries will be small. LOS for White personnel at Skill Zone 1 and 4 is 3.2 and 3.5 years higher respectively, but as BAME numbers are small for these grades, the average is subject to being exaggerated by any outlying values.

Table B1: Average Annualised Basic Salary by Ethnicity and Grade

Grade Skill Zone 4 Skill Zone 3 Skill Zone 2 Skill Zone 1
Headcount * 1,020 1,020 420
White 160 1,000 980 410
BAME ~ 20 40 10
Average FTE 0.99 0.99 0.98 0.97
White 0.99 0.99 0.98 0.97
BAME 1 0.97 0.99 0.95
Average LOS in Grade (years) 9.1 10.0 9.4 11.5
White 9.1 10.0 9.4 11.5
BAME 5.7 12.0 8.1 8.3
Diff. in LOS in Grade (years) 3.5 -2.0 1.3 3.2
Average Basic Salary (£) 25,350 21,310 18,780 17,230
White 25,350 21,310 18,780 17,230
BAME 25,190 21,360 18,780 17,230
Diff. in Average Basic Salary 0.6% -0.3% 0.0% 0.0%
  • Source: Analysis Civilian
  • Salaries have been rounded for presentation purposes
  • Because of rounding, totals may not always equal the sum of the parts

Average Annual Basic Salary for Part-Time Permanent Employees by Ethnicity and Grade

Table B2 shows the same outputs as in Table B1, but for part-time personnel. A number of categories within this table do not have sufficient numbers to provide robust data and have been replaced with a number of symbols (see section ‘Symbols and Conventions’ for more detail).

Summary

The numbers of part-time BAME personnel are too small to reliably calculate averages or to conduct any salary comparisons. However, the numbers of White personnel at each grade have been shown for information.

Table B2: Average Annualised Basic Salary for Part-Time Permanent Employees by Ethnicity and Grade

Grade Skill Zone 4 Skill Zone 3 Skill Zone 2 Skill Zone 1
Headcount 10 * * *
White 10 40 60 40
BAME - ~ ~ ~
Average FTE 0.69 0.63 0.72 0.62
White 0.69 0.64 0.71 0.62
BAME 0 0.41 0.8 0.54
Average LOS in Grade (years) 11.0 10.9 12.6 11.6
White 11.0 10.7 12.6 11.4
BAME 0.0 16.0 12.5 16.0
Diff. in LOS in Grade (years) 11.0 -5.3 0.1 -4.6
Average Basic Salary (£) 25,470 21,600 18,790 17,230
White 25,470 21,630 18,790 17,230
BAME - 20,720 18,800 17,230
Diff. in Average Basic Salary - 4.4% 0.0% 0.0%
  • Source: Analysis Civilian
  • Salaries have been rounded for presentation purposes
  • Because of rounding, totals may not always equal the sum of the parts

Promotion by Gender and Grade

Length of Time to Promotion by Gender and Grade

Table C1 shows the number of males and females in each Skill Zone who were substantively promoted/advanced in the year from 1 October 2019 to 1 October 2020 (temporary promotions were not included here, except where those temporary promotions were made substantive, and in these cases the point of promotion was taken at the point where the promotion was made substantive). The Skill Zone referenced in this table is the Skill Zone which personnel were promoted into i.e. where a person in Skill Zone 3 was promoted to Skill Zone 4, they are listed here under their new grade of Skill Zone 4.

It also considers the average length of service in grade prior to promotion (i.e. in the previous Skill Zone) in order to observe the length of time it took to be promoted for those individuals who were promoted within the period 1 October 2019 to 1 October 2020.

The analysis also observes the average basic salary upon promotion, which will be also be affected to some degree by the differing proportions of males and females on the London or National pay scales.

Summary

In total, 30 Skill Zone personnel were promoted in the year 1 October 2019 to 1 October 2020. Any comparisons between genders in terms of average basic salary differences and average length of service to promotion would be unreliable given such low numbers.

Table C1: Length of Time to Promotion by Gender and Grade

Grade Skill Zone 4 Skill Zone 3 Skill Zone 2
Promotions into Grade ~ * *
Male ~ 10 10
Female - ~ ~
Average Basic Salary to promotion (£) * 20,660 18,760
Male 25,190 20,600 18,760
Female - 20,830 18,760
% Diff. in Average Basic Salary * -1.1% 0.0%
Average LOS to promotion (years) * 5.0 5.9
Male 2.3 5.8 6.4
Female - 2.8 2.8
Diff. in LoS to promotion (years) * 3.0 3.5
  • Source: Analysis Civilian
  • Salaries have been rounded for presentation purposes
  • Because of rounding, totals may not always equal the sum of the parts

Promotion Proportions by Gender and Grade

Table C2 shows the number of males and females in each Skill Zone who were substantively promoted in the year from 1 October 2019 to 1 October 2020 (temporary promotions were not included here, except where temporary promotions were made substantive within the period, and in these cases the point of promotion was taken at the point where the promotion was made substantive). Promotion figures also exclude Trading Funds, Royal Fleet Auxiliaries, Locally engaged civilians, SCS, retained grades, personnel on zero pay, those whose pay falls outside the pay scales, and those where no valid grade or pay data are recorded as at 1 October 2020.

The grade referenced in this table is the grade which personnel were promoted into i.e. where a person in Skill Zone 3 was promoted to Skill Zone 4 they are listed here under their new grade of Skill Zone 4. No sideways transfers from industrial to non-industrial grades or vice versa are included here, and no new recruits from external to MOD are included, therefore Skill Zone 1 is not presented in the table as it is not possible to be promoted into this grade. Gender promotion rates are derived by taking the number of promotions into each grade in consideration with the actual strength (personnel) by gender of the lower grade at the start of the period.

Average strength is calculated as a 13-month weighted average and represents the pool of people at one grade beneath the promotion grade (lower grade). It is assumed for simplicity that there are no promotions from two grades below or more. Average strength figures exclude all of the categories above, except personnel on zero pay who are included as potential promotes to paid positions.

Significance tests examine whether the difference between promoted female proportions is significantly different to the female proportions in the lower grade. Where the difference is positive the promoted female proportion is higher than the lower grade female proportion. Whether these differences are statistically significant can be identified by an S in the % Diff. for Females in Promotion & Lower Grade row below. The significance test is conducted at a 95% confidence level.

Summary

Due to the small numbers, a comparison of whether there is a significant difference between the proportion of females being promoted, compared with the proportion of females at the lower grade, is not possible at any grade.

Table C2: Promotion Proportions by Gender and Grade

Grade All Grades Skill Zone 4 Skill Zone 3 Skill Zone 2
Number of Promotions into Grade 30 - * *
Male 20 - 10 10
Female 10 - ~ ~
% of Promoted Females 20.7% - 26.3% 12.5%
Average Personnel at Lower Grade 2,700 * 1,170 1,320
Male 2,330 - 1,090 1,030
Female 370 - 80 290
% of Females at Lower Grade 13.8% * 6.7% 22.0%
         
% Diff. for Females in Promotion and Lower Grade 6.9% * 19.6% -9.5%
         
Promotion Rate into Grade 1.1% * 1.6% 0.6%
Male 1.0% * 1.3% 0.7%
Female 1.6% * 6.4% 0.3%
Promotion Rate Diff. -0.6% * -5.1% 0.3%
  • Source: Analysis Civilian
  • S Statistically Significant at the 95% confidence interval.
  • Because of rounding, totals may not always equal the sum of the parts

Ministry of Defence Broader Banded Pay Ranges (Industrial personnel)

The Ministry of Defence considers that a necessary and fair measure is to address the pay gap between people being paid considerably less than colleagues performing a similar role at the same grade. The pay award for 2020 followed the approach by recent settlements by providing larger increases for individuals towards the bottom of their pay scale. The following rates were applied:

  • Maximum of scales will be increased by 1% - individuals on the current maximum will be moved to the new maximum
  • Everyone below the current maximum will receive an uplift in their pay of 2.7% unless this takes them above the new maximum. If this is the case the individual will be placed on the new maximum
  • Minimum of scales will be increased to the rates detailed in the final ODS tables. Individuals who fall below the new minimum after the application of the 2.7% outlined above will be moved onto the new minimum.

MOD Main Salary Ranges for Broader Banded Personnel (Industrial) 2015 to 2020

See attached Excel ODS table: Industrial Tables: ODS table

Background notes

Data Sources

Statistics produced by Analysis Civilian are compiled for:

MOD Main Personnel - Data for MOD Main personnel have been taken from the personnel system - Human Resources Management System (HRMS) on a monthly basis since April 2004. DS use budgetary UINs and attribute people according to the budgetary area that pays them, using the Standing Data System hierarchy from Financial Management Information Systems.

Civilian Personnel Pay - Defence Business Systems (DBS) provide Analysis Civilian with a dataset of all those individuals on the pay system as at 1 October 2020 and their grade according to the ‘Salary Admin Plan’ field. Additional information in the DBS dataset includes those receiving a promotion in the relevant period, the date of that promotion, the grade they were promoted from and the new grade they have been promoted into, the length of service in grade prior to promotion, and basic salary as at 1 October 2020.

Data Definitions

Length of service in grade (LOS) (which automatically resets to 0 on promotion) was recorded as at the period prior to promotion in order to ascertain the length of time in the previous grade prior to being promoted. The LOS in grade field was reset to start counting from 2000, for the majority of MOD personnel in post in April 2004, when the new HRMS data system was introduced. Despite this limitation there is no evidence that this would introduce any gender bias. Although caution should be used when viewing the actual values of length of service in grade, as these will be capped at 13 years for the majority of individuals. Initial investigations have shown this to only affect a few individuals and as such where these values are used for statistical analysis they are still valid for making statistical adjustments for the grade band in question.

Length of service in grade also resets to 0 for persons transferring in from another government department, irrespective of whether they transferred across at the same grade. This is unlikely to have a skewing effect, as these numbers tend to be small.

Average Length of Service in Grade is presented in years to one decimal place. Gender difference in average Length of Service in grade are calculated from the difference between the exact averages and are also presented in years to one decimal place.

Promotions This report analyses the number of personnel who were promoted in the 12 months from 1 October 2019 to 1 October 2020. Included in these analyses were those who were substantively promoted or advanced within this period (including a small number of personnel who were both recruited and promoted within the time period). Temporary promotions were not included, except where individuals had been on temporary promotion and were made substantive within the period. MOD has advancement from E2 to E1, C2 to C1 and B2 to B1 but for the purposes of the report these are referred to as promotion.

Significance Testing Section 7.2 includes statistical tests on the relative differences of the female proportion within promotion groups for each grade, compared to the female proportion of the underlying average strength of the grade from which they were promoted. The test only needs to be conducted on the female proportion, as we are considering the proportion as females divided by the sum of males and females in each case.

This is different to the significance test methodology used prior to 2012 which compared the promotion rates of male to females. It has been determined that this method is not the most appropriate and can be distorted by the fact that male and female rates are not independent of each other, whereas the proportion of females in the promotion group is independent of the proportion of females within the underlying strength group. This can be assumed to be true where the factors that influence promotion are equally distributed for men and women. Therefore a statistical test result of ‘Significant’ suggests that either gender or a factor that is gender biased is having an influence on promotion.

Grade structures

Since 1 April 1996 all departments and agencies have had delegated responsibility for the pay and grading of their employees, except for those in the Senior Civil Service (SCS). The MOD grades are shown here against levels broadly equivalent (in terms of pay and job weight) to the former service-wide grades.

MOD Industrial grades Former service-wide grades
SZ3 – Skill Zone 4 EO – Executive Officer
SZ3 – Skill Zone 3 AO – Administrative Officer
SZ2 – Skill Zone 2 AA – Administrative Assistant
SZ1 – Skill Zone 1 AA – Administrative Assistant

Other definitions (to those previously reported)

Broader Banded grade Analysis Civilian report personnel against their equivalence within the broader banded structure; B1 to E2 for non-industrials and Skill Zones 1 to 4 for Industrial. The analyses does not include: SCS for non-industrial, Industrial Firemen and Apprentices for industrial personnel. Also excluded are personnel in retained grade structures, (such as MOD Guards) and personnel employed in analogue grade bands (such as civilian nurses employed against NHS grade codes), who have their own delegated pay schemes outside of the MOD National and London pay scales.

Defence Equipment and Support (DE&S) is responsible for equipping and supporting the UK’s Armed Forces. They manage a vast range of complex projects to buy and support all the equipment and services that the Royal Navy, British Army and Royal Air Force need to operate effectively. They work closely with industry, including through partnering agreements and private finance initiatives. Their main responsibilities are:

  • The procurement and support of ships, submarines, aircraft, vehicles, and supporting services
  • General requirements including food, clothing, medical supplies and temporary accommodation
  • Inventory management
  • British Forces Post Office
  • Submarine dismantling project

DE&S was reported as a bespoke trading entity on 1 July 2015 (prior to this it was reported as an extant TLB). This means it is an arm’s length body of the Ministry of Defence with a separate governance and oversight structure with a board under an independent Chairman, and a Chief Executive who will be an Accounting Officer, accountable to Parliament for the performance of the organisation. It achieved full status for reporting purposes as at 1 April 2015.

Full Time Equivalence (FTE) is a measure of the size of the workforce that takes account of the fact that some people work part-time. Prior to 1 April 1995 part-time employees were assumed to work 50% of normal hours, but since then actual hours worked has been the preferred methodology. The average hours worked by part-time personnel is about 68% of full-time hours.

Top Level Budgetary Area (TLB) are the major organisational groupings of the MOD directly responsible for the planning, management and delivery of departmental capability.