Questions & Answers

Question-ID: 549

Release Date: Oct 31, 2024


Questions & Answers

May non-exempt employees of an employer who are bound by a collective wage agreement be omitted when calculating the gender pay gap (at least when broken down by employee category)?

Key Terms
  • Gender pay gap
  • collective wage agreements

Background

ESRS S1 paragraph 97 states: ‘The disclosure required by paragraph 95 shall include:

(a) the gender pay gap, defined as the difference of average pay levels between female and male employees, expressed as percentage of the average pay level of male employees; …

(c) where applicable, any contextual information necessary to understand the data and how the data has been compiled and other changes to the underlying data that are to be considered.’

ESRS S1 paragraph 98 states: ‘The undertaking may disclose a breakdown of the gender pay gap as defined in paragraph 97 (a) by employee category and/or by country/segment. The undertaking may also disclose the gender pay gap between employees by categories of employees broken down by ordinary basic salary and complementary or variable components.’

Answer

No, all male and female employees have to be included in the calculation of the gender pay gap regardless of whether they are covered by collective agreements or not.

Collective agreements can set equal levels of wages and benefits for both male and female employees (provided that all components of the definition of ‘pay’ are included in the calculation, the gender pay gap broken down by employee categories would be negligible). The undertaking may explain this when providing relevant contextual information under ESRS S1 paragraph 97 (c).


Relations

Paragraph
Content
2023 ESRSESRS S1 - OWN WORKFORCE...Pay gapAR 99.

When disclosing the information required under paragraph 97 (a), the undertaking shall provide any contextual information necessary to understand the data and how the data has been compiled (methodology). Information regarding how objective factors such as type of work and country of employment influence the gender pay gap may be reported.

2023 ESRSESRS S1 - OWN WORKFORCE...Appendix A - Application RequirementsAR 98.

When compiling the information required under paragraph 97 (a) for the gap in pay between its female and male employees (also known as the “gender pay gap”) the undertaking shall use the following methodology:

2023 ESRSESRS S1 - OWN WORKFORCE...Disclosure Requirement S1-16 – Remuneration metrics (pay gap and total remuneration)97. (c)

where applicable, any contextual information necessary to understand the data and how the data has been compiled and other changes to the underlying data that are to be considered.

2023 ESRSESRS S1 - OWN WORKFORCE...Metrics and targets97. (a)

the gender pay gap, defined as the difference of average pay levels between female and male employees, expressed as percentage of the average pay level of male employees ;

2023 ESRSESRS S1 - OWN WORKFORCE...Disclosure Requirements98.

The undertaking may disclose a breakdown of the gender pay gap as defined in paragraph 97(a) by employee category and/or by country/segment. The undertaking may also disclose the gender pay gap between employees by categories of employees broken down by ordinary basic salary and complementary or variable components.

2023 ESRSESRS S1 - OWN WORKFORCE...Appendix A - Application RequirementsAR 99.

When disclosing the information required under paragraph 97 (a), the undertaking shall provide any contextual information necessary to understand the data and how the data has been compiled (methodology). Information regarding how objective factors such as type of work and country of employment influence the gender pay gap may be reported.

2023 ESRSESRS S1 - OWN WORKFORCE...Disclosure Requirement S1-16 – Remuneration metrics (pay gap and total remuneration)AR 98.

When compiling the information required under paragraph 97 (a) for the gap in pay between its female and male employees (also known as the “gender pay gap”) the undertaking shall use the following methodology:

2023 ESRSESRS S1 - OWN WORKFORCE...Disclosure Requirements98.

The undertaking may disclose a breakdown of the gender pay gap as defined in paragraph 97(a) by employee category and/or by country/segment. The undertaking may also disclose the gender pay gap between employees by categories of employees broken down by ordinary basic salary and complementary or variable components.

2023 ESRSESRS S1 - OWN WORKFORCE...Disclosure Requirements97. (c)

where applicable, any contextual information necessary to understand the data and how the data has been compiled and other changes to the underlying data that are to be considered.

2023 ESRSESRS S1 - OWN WORKFORCE...Metrics and targets97. (a)

the gender pay gap, defined as the difference of average pay levels between female and male employees, expressed as percentage of the average pay level of male employees ;