The bonus and variable pay gap: what to include and how to calculate it
By the Equaudit team · Updated · 3 min read
Base salaries are only part of pay. Bonuses, commissions, allowances and other variable components often favour the better-paid and can widen a gap that looks small on base pay alone. The EU Pay Transparency Directive asks employers to report on them separately, which is why you need a clear method before you file.
What the directive asks for
Among the indicators employers must report are the gender pay gap and the median gender pay gap in complementary or variable components, and the proportion of female and male workers receiving complementary or variable components. In the directive's terms, pay covers the ordinary basic salary and any other consideration, in cash or in kind, that a worker receives directly or indirectly from the employer.
Typical variable components include annual bonuses, sales commissions, profit sharing, performance pay, shift or on-call premiums where they are not part of base pay, and benefits in kind that your national law treats as pay. Your payroll codes will usually tell you which lines are variable, and you should map them once and keep the mapping documented.
Two ways to calculate, and why it matters
The text leaves room for interpretation on who is in the population for the variable-pay gap. Two conventions are in use, and they give different numbers:
- Recipients only. Compare the average bonus of women who received one with the average bonus of men who received one. This is the approach used in some national schemes, and it isolates the size of bonuses.
- All workers. Include everyone and count people who received nothing as zero. This captures both the size of bonuses and who receives them.
Because member states are free to specify the details, check your national law, and where it is silent, be prepared to explain the convention you used. Equaudit reports both so that you can see the spread.
A worked example
Four women and four men. Annual bonuses are converted to an hourly equivalent (annual bonus divided by paid hours), in euros per hour.
| Variable pay per hour | Receiving | Mean (recipients) | Median (recipients) | Mean (all) | Median (all) | |
|---|---|---|---|---|---|---|
| Women | 0, 0, 1.00, 1.40 | 2 of 4 (50%) | 1.20 | 1.20 | 0.60 | 0.50 |
| Men | 0, 1.50, 2.00, 2.50 | 3 of 4 (75%) | 2.00 | 2.00 | 1.50 | 1.75 |
Using the formula (men − women) ÷ men × 100, the recipients-only mean gap is (2.00 − 1.20) ÷ 2.00 = 40.0% and the median gap is also 40.0%. For all workers the mean gap is (1.50 − 0.60) ÷ 1.50 = 60.0% and the median gap is (1.75 − 0.50) ÷ 1.75 = 71.4%.
The all-workers numbers are larger because fewer women than men receive a bonus at all. Reporting the share receiving variable pay, 50% of women against 75% of men here, makes the reason visible.
What to look for
- Access gap. If fewer women receive variable pay, look at eligibility rules, role mix and how targets are set.
- Size gap. If recipients are equal in number but women's bonuses are smaller, look at target-setting, performance rating calibration and part-time proration.
- Structural effect. Variable pay concentrates in senior and commercial roles. Compare with your pay quartiles to see whether the gap is a seniority effect.
Remember that variable components also feed into your total pay gap and your category gaps, which determine exposure under the 5% rule.
Frequently asked questions
Which payments count as variable pay?
Anything paid on top of ordinary basic salary that varies, such as bonuses, commissions, profit sharing and performance pay, plus benefits in kind that national law treats as pay. Map your payroll codes once and document the mapping.
Should people who got no bonus be counted as zero?
It depends on the convention your national law uses. Counting zeros captures who receives a bonus as well as its size, while recipients-only isolates size. Reporting the share of women and men receiving variable pay alongside either figure keeps the picture complete.
How do I convert an annual bonus to hourly pay?
Divide the annual amount by the hours the person was paid for in the reference period, using the same hours as in the hourly base pay calculation.