Which pay gap indicators to follow during the year
By the Equaudit team · Updated · 2 min read
The directive asks employers to report several indicators. For steering, five are worth knowing and two or three are enough for a regular review. This guide explains what each one tells you and what it hides.
The headline: mean and median gap
The mean gap compares average hourly pay of women and men. The median gap compares the middle values. When they differ a lot, a small group of very high or very low salaries is pulling the average. Follow both. For the calculation see how to calculate the gender pay gap.
The one that triggers action: gap per category
A gap of 5% or more in a category of workers, that you cannot justify with objective and gender-neutral criteria and do not correct, leads to a joint pay assessment. This is the indicator with consequences, so it is the one to watch most closely, category by category. Details in the 5% rule.
The quality of this figure depends on how you define categories. If they are too broad they hide differences; too narrow and every group is a handful of people. See defining categories of equal work.
Structure: pay quartiles
Quartiles split employees into four equal pay bands and show the share of women and men in each. A balanced company overall can still have women concentrated in the lowest band. Quartiles change slowly, so check them quarterly or yearly rather than monthly. See pay quartiles explained.
Variable pay: bonus gap and share of recipients
Bonuses often carry a larger gap than base pay. Two figures matter: the gap among those who receive a bonus, and the share of women and men who receive one at all. Follow them after each bonus cycle. See the bonus and variable pay gap.
A short list for the steering review
| Indicator | Rhythm | Question it answers |
|---|---|---|
| Mean and median gap | Each period | Is the overall gap moving? |
| Categories at or above 5% | Each period | Where must we act? |
| Quartile distribution | Quarterly or yearly | Is the structure changing? |
| Bonus gap | After each bonus cycle | Does variable pay widen the gap? |
More on how to turn the figures into decisions in why track your pay gap between two reports.
Frequently asked questions
Should I follow the mean or the median?
Both. A difference between them is itself informative: it points to a few outlying salaries.
Is a total gap below 5% enough?
No. The 5% test applies per category of workers, so an acceptable overall figure can hide a category above the threshold.