1. What is Mean Gender Pay Gap?

The mean gender pay gap measures the difference between average earnings of men and women, expressed as a percentage of men's earnings. It highlights overall earnings disparities between genders in an organization or population.

2. How Does the Calculator Work?

The calculator uses the mean gender pay gap formula:

Where:

• \( \text{Male Mean Pay} \) — Average earnings of male employees
• \( \text{Female Mean Pay} \) — Average earnings of female employees

Explanation: The formula shows what percentage less women earn on average compared to men. A positive value indicates women earn less than men on average.

3. Importance of Pay Gap Calculation

Details: Calculating the gender pay gap helps identify wage disparities, supports equal pay initiatives, and promotes transparency in compensation practices.

4. Using the Calculator

Tips: Enter the average pay for male and female employees in any currency (but be consistent). The calculator will compute the percentage difference.

5. Frequently Asked Questions (FAQ)

Q1: What's a good gender pay gap percentage?
A: Ideally 0%, indicating equal pay. Most countries have some gap, with under 5% considered relatively equal.

Q2: How does this differ from median pay gap?
A: Mean gap considers all salaries equally, while median gap compares middle salaries and is less affected by outliers.

Q3: Should bonuses be included?
A: For comprehensive analysis, include all compensation (salary, bonuses, overtime). For basic calculation, use base pay.

Q4: What causes gender pay gaps?
A: Factors include occupational segregation, career interruptions, discrimination, and differences in negotiation.

Q5: How often should pay gaps be calculated?
A: Annually is standard practice for organizations monitoring pay equity.