Ethnicity pay gap reporting

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 other areas affected by inequality and a lack of diversity.

• The government has carried out a consultation on ethnicity pay reporting. The consultation ended on 11 January 2019. 
• The Conservative Party’s election manifesto contained a commitment to introduce mandatory ethnicity pay gap reporting, however on 17 March 2022 it was made clear that this will not be happening. This was despite calls by the Commons Women and Equalities Committee, and the CIPD, both called for mandatory ethnicity pay gap reporting by large employers by April 2023.
• To support employers, the CIPD 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.  
• On 17 April 2023, the government produced guidance on completing voluntary ethnicity pay gap reports.
• More information on gender pay gap reporting can be found on our employment law page.