1. What is the Gender Pay Gap?

The gender pay gap measures the difference between men's and women's average earnings in the workforce. It's expressed as a percentage of men's earnings and highlights inequality in pay between genders.

2. How Does the Calculator Work?

The calculator uses the standard pay gap formula:

Where:

• Male Earnings — Average earnings for male employees
• Female Earnings — Average earnings for female employees

Explanation: The formula calculates what percentage less women earn compared to men. A positive percentage indicates women earn less, while a negative percentage would indicate women earn more.

3. Importance of Pay Gap Calculation

Details: Calculating the gender pay gap helps identify wage disparities, assess workplace equality, and track progress toward pay equity over time.

4. Using the Calculator

Tips: Enter average male and female earnings in the same currency. The calculator will show the percentage difference between them.

5. Frequently Asked Questions (FAQ)

Q1: What does a 15% pay gap mean?
A: A 15% gap means women earn 85% of what men earn, or women earn 15% less than men on average.

Q2: Should we use median or average earnings?
A: Median is often better as it's less affected by extreme high earners, but this calculator works with either.

Q3: Does this account for different roles or experience?
A: No, this calculates the "unadjusted" gap. "Adjusted" gaps account for factors like position and experience.

Q4: What's considered a significant pay gap?
A: Any gap above 5% is generally considered significant and worth investigating for potential discrimination.

Q5: How can organizations reduce their pay gap?
A: Strategies include salary audits, transparent pay scales, blind hiring, and regular pay equity reviews.