Ethnicity Pay Reporting — Guidance Published

The government published on 17 April 2023 its long-awaited guidance on ethnicity pay reporting.

In February 2022, the Women and Equalities Committee called on the government to make ethnicity pay gap reporting mandatory. This was a first step to addressing pay disparities between employees from different ethnic backgrounds. Despite this, on 17 March 2022, the government confirmed that it will not mandate ethnicity pay gap reporting but committed to "support employers across the UK who want to publish their ethnicity pay gaps". This "support" was by the introduction of guidance.

Organisations will be aware that it is a statutory requirement for employers with at least 250 employees to report gender pay gaps. While ethnicity pay reporting is voluntary the government guidance will provide organisations with information to measure pay differences.