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The gender pay gap: guidance for employers

Last updated
9 Jun 2025

The gender pay gap is a way of measuring the difference in average hourly pay between men and women across the workforce.

The gender pay gap exists because women earn less per hour than men on average. They also earn much less than men over their careers.

It's driven by various factors that affect a woman’s employment options and opportunities, such as caring responsibilities and working in sectors and jobs which are generally lower paid.

Watch a video describing the gender pay gap from Close the Gap on YouTube.

The gender pay gap in Scotland

The gender pay gap in Scotland has been narrowing over time and has been lower than the UK as a whole since 2003.

The gap does vary between different industrial sectors. For example, it is higher in sectors such as finance and insurance services as there are more men in senior positions. The gap is lower in sectors such as education and caring, as these have a mainly female workforce and are lower paid.

Find more information on the 2024 gender pay gap in Scotland on gov.scot.

Your responsibilities as an employer

If you have 250 or more employees

Any employer with 250 or more employees must report their gender pay gap data on a specific date each year known as the ‘snapshot date’. This is normally 5 April.

You must submit your gender pay gap report on GOV.UK and must also publish gender pay gap data on your organisation’s website within 12 months of the snapshot date.

The Close your pay gap toolkit from Close the Gap has guidance and advice to help you calculate and report on your organisation's gender pay gap.

If you are a public sector body in Scotland

The Public Sector Equality Duty (PSED) is part of the Equality Act 2010 which came into force in 2011. It says that public authorities must have ‘due regard’ to the need to:

  • advance equality
  • eliminate discrimination
  • foster good relations between different groups of people

This means that public authorities must consider how their policies or decisions affect people protected under the Equality Act.

The PSED applies to public authorities and organisations carrying out public functions across England, Scotland and Wales.

To support the PSED, Scotland has specific regulations known as the Scottish Specific Duties (SSDs). All listed public authorities in Scotland, with over 20 employees, must report and publish gender pay gap information at least every 2 years.

Find out more about public sector duties in Scotland on the Equality and Human Rights Commission (EHRC) website.

Check this list of public authorities in Scotland on the EHRC website to find out if your organisation needs to report.

Close the Gap has specific guidance for Scottish public authorities on how to report the gender pay gap.

What causes the gender pay gap

The gender pay gap occurs due to a range of different factors.

Occupational segregation

Occupational segregation is where men and women are clustered at different levels and in certain roles or professions.

There are often more men in senior positions than women. Men tend to work in well-paid sectors, such as engineering and finance. Women often work in lower-paid jobs and sectors such as care, retail, admin and cleaning.

Unpaid caring responsibilities

Women are often the main carers for children and other dependents, which can mean they have to work less hours. This can affect their employment options and opportunities and influence their future income and pension provision.

Fewer flexible working opportunities

Women are often the primary carers in a household, so having access to well-paid flexible work opportunities can help them find work, and progress in work.

Pregnancy and maternity discrimination

Many women face ‘the motherhood penalty’ in their working lives. This means they are more likely to take career breaks to have children and then face difficulties when they re-enter the job market.

Other forms of workplace discrimination

Discrimination at work can affect the gender pay gap. For example, women are under-represented at senior management level. They are also more likely to experience sexual harassment and misogyny at work.

Other factors include:

  • biased recruitment, development and progression opportunities
  • discrimination in pay and grading systems

How the gender pay gap affects your organisation

For employers, the gender pay gap can lead to:

  • reduced workplace morale
  • difficulty in attracting and retaining talent
  • reputational damage

For workers, a gender pay gap can result in:

  • reduced lifetime earnings
  • lower pensions
  • limited career opportunities

Employment inequalities tend to be greater for women who are:

  • disabled
  • from racialised minorities
  • from poorer socio-economic backgrounds
  • carers
  • over 50 years of age

Closing the gender pay gap can help boost economic growth, according to McKinsey’s 2017 Women Matter report. Addressing the gender pay gap in your organisation is also essential for a fairer and more inclusive economy.

Actions you can take

Reducing the gender pay gap needs a strategic approach. As an employer, you can:

  • create gender pay gap action plans: ensure that they are time-bound, target-driven and evaluated
  • promote flexible working: offer a range of options that suit individual circumstances, for example part-time, job-share, and remote working options to encourage women to join and remain in the workforce
  • support career progression: provide mentoring, training and development opportunities targeted at under-represented groups
  • support line managers: increase knowledge of the barriers female staff can experience by providing training in implementing and adhering to policies and processes that support female staff
  • address occupational segregation: encourage gender diversity in all roles, especially in sectors that are traditionally male- or female-dominated
  • review recruitment practices: use gender-neutral language and promote the availability of flexible working in job adverts, practice anonymised recruitment and aim to have diversity in interview panels
  • develop inclusive workplace policies: introduce family-friendly policies and enhanced support for maternity, paternity and parental leave and encourage fathers and partners to use these services
  • implement supportive policies and procedures: develop policies to prevent and deal with workplace harassment
  • introduce the real Living Wage: help workers to meet the cost of living by paying the real Living Wage

Employer resources on the gender pay gap

Find out more about workplace gender inequality in Scotland on Close the Gap.

The Think Business, Think Equality self-assessment tool from Close the Gap can help small or medium-sized businesses to assess their current employment practice and create an action plan.

Find guidance for employers on gender pay gap reporting on GOV.UK.

Find out about flexible working arrangements you can introduce in your organisation.

Watch a video on how to support line managers from Close the Gap.

Get advice on pregnancy and maternity discrimination from the employer toolkits on the EHRC website.

Find guidance on preventing sexual harassment at work from the EHRC.

Find out about the employer benefits of supporting carers on Carer Positive.

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