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Ethnicity pay gap reporting

Overview

Following the introduction of the mandatory requirement for private and public sector organisations to calculate and publish a gender pay gap report, there have been calls for pay transparency to be extended to others areas affected by inequality and a lack of diversity.

The Conservative Party’s election manifesto contained a commitment to introduce mandatory ethnicity pay gap reporting.

The government has carried out a consultation on ethnicity pay reporting. The consultation ended on 11 January 2019. No legislation has yet been enacted, but the matter is due to be debated in parliament in September 2021. 

The CIPD have called for mandatory ethnicity pay gap reporting by large employers by April 2023. They are also urging employers not to wait until this becomes law, and start collecting data now. To support employers, they have produced a reporting guide for ethnicity pay reporting, recommending what data should be gathered and in what way. Information is also provided on creating a narrative and long-term action plans.  

More information on gender pay gap reporting can be found on our employment law page.

Reviewed and updated 21 September 2021