25 Apr 2023

Ethnicity pay reporting: guidance for employers

The UK’s Department for Business and Trade has released guidance for employers on how to measure, report on and address any ethnicity pay differences within their workforce.

This guidance has been developed to help employers who wish to analyse and report on their ethnicity pay. This is in response to action 16 from Inclusive Britain.

Ethnicity pay reporting is one of the tools employers can use to build transparency and trust among their employees. We want to help those employers who want to report their ethnicity pay data by providing a consistent approach that they can follow, which will allow for meaningful comparisons.

This guidance includes advice on:

collecting ethnicity pay data for employees
how to consider data issues such as confidentiality, aggregating ethnic groups and the location of employees
the recommended calculations and step by step instructions on how to do them
reporting the findings
further analysis that may be needed to understand the underlying causes of any disparities
the importance of taking an evidence-based approach towards actions.