Female managers in the UK earn around £12,000 less than their male colleagues, which is more than previously thought, research published today has revealed.
New government transparency rules have shown that the gender pay gap for the UK's 3.3m managers is nearly £3,000 bigger than previously understood, according to analysis by the Chartered Management Institute (CMI) and XpertHR.
As calculated under the new regulations, the pay gap stands at 26.8 per cent with male managers on average out-earning their female colleagues by £11,606 a year, including salary and bonuses as well as company perks.
Previous analysis, which calculated the pay gap from managers' basic salaries only, put the gap at 23.1 per cent last year, or £8,964. Even without the new measures, however, the basic salary gap grew to 23.6 per cent, or £9,326.
The government's new reporting regulations were put in place in April 2017, and they require large companies, or those with more than 250 employees, to publicly disclose the size of their gender pay gap.
As of 22 September, just 77 out of 7,850 UK companies had reported the required information.
“Our data show we need the government’s gender pay gap reporting regulations more than ever before. Yet, less than one per cent of companies have reported so far. Time for more companies to step up and put plans in place to fix this issue. It’s essential if UK companies are to survive and thrive in the post-Brexit world," said Ann Francke, chief executive at CMI.
The findings also revealed women were far more likely to fill junior management positions than men, but the women who do progress to more senior roles see an even wider pay gap. At director-level positions, it rises to £34,144, with men earning an average of £175,673 and women £141,529.
“Too many businesses are like ‘glass pyramids’ with women holding the majority of lower-paid junior roles and far fewer reaching the top," Francke added.