The government has published its response to the March 2025 consultation on ethnicity and disability pay gap reporting, confirming that it will proceed with its plans for mandatory reporting for employers with 250 or more employees.
This forms part of the proposed Equality (Race and Disability) Bill, building on the existing gender pay gap reporting framework. The consultation received strong support, with the majority of respondents backing mandatory reporting.
Draft legislative provisions have also been published to illustrate how the regime is expected to operate in practice.
The new regime will closely mirror the existing gender pay gap reporting framework. Employers will be required to report mean and median pay gaps, bonus gaps and pay quartile data.
For ethnicity, employers will be required to report a minimum binary comparison between white employees and the pay of employees in all other ethnic groups combined. Where sufficient data is available, further reporting across five broad ethnic groups will also be required.
For disability, reporting will initially be limited to a binary comparison between disabled and non-disabled employees, using the statutory definition of disability. The government has indicated that more detailed reporting may be introduced in future if data quality improves.
Employers will also need to publish information on workforce composition, including the proportion of employees who have not...
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