(Bloomberg) -- Thousands of U.K. employers are set to begin publishing figures showing the difference between what men and women earn, under a law the government says is not only fair but could also add billions of pounds to the economy.
Voluntary, private and public organizations with 250 or more employees will have to reveal any gender discrepancies in staff pay by April next year. The new regulations, which come into force Thursday, will affect roughly 9,000 firms employing more than 15 million people, almost half the U.K. workforce. The national pay gap stands at 18.1 percent, the Office for National Statistics estimates.
Employers will publish figures from a “snapshot” period in April, calculating the median and mean pay gaps, the proportion of men and women in each quartile of the payroll and the gaps reflected in any bonuses -- including the proportions of male and female bonus recipients. Companies will also be encouraged to publish “action plans” showing how they will attempt to close any gaps.
“Helping women to reach their full potential isn't only the right thing to do, it makes good economic sense and is good for British business,” the minister for women and equalities, Justine Greening, said in an emailed statement.
Eliminating gender gaps at work could add 150 billion pounds ($187 billion) to annual gross domestic product by 2025, according to a study by consulting firm McKinsey & Co. Inc. cited by the government. The Fawcett Society, which campaigns for gender equality, says it would take 60 years to close the pay gap at the current rate of progress.
Government bodies will have “appropriate enforcement powers” for companies that do not comply with the measures, which were announced two years ago. Public-sector reporting regulations started on March 31.
Few big organizations currently report such data. Those that do include BHP Billiton, Swedbank AB, Enbridge Inc, Microsoft Corp, SSE Plc and Singapore Exchange Ltd, according to Bloomberg Intelligence.
The government said it is working with some firms that are considering publishing figures early but declined to mention any specifics. Deloitte LLP, Sodexo SA and Virgin Money revealed their pay gaps in recent months.
To contact the reporter on this story: Thomas Seal in London at tseal@bloomberg.net.
To contact the editors responsible for this story: Celeste Perri at cperri@bloomberg.net, Eddie Buckle, Andrew Atkinson
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