Definition The difference between the average earnings of men and women across an organisation.
Example Men’s average pay of €40 an hour and women’s €36 gives a gender pay gap of 10%.
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Why it matters It highlights fairness issues and is often a legal reporting requirement.
Where it is used Annual pay gap reports and HR diversity dashboards.
How to calculate it (Men’s average pay − women’s average pay) ÷ men’s average pay × 100
Worked example Men’s average pay of €40 an hour and women’s €36 gives a gender pay gap of 10%.
