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Salaries for jobs with broadly similar titles and job specifications
can vary greatly across industry sectors and geographical regions. And,
despite the Equal Pay Act introduced 30 years ago, your salary may even
be affected by your gender and ethnic origin.
What's the going rate for the job?
Before applying for a job, conduct some research on how much the role is
worth - this will put you in a strong position from which to negotiate
your salary at an interview. If pay isn't made clear in the job advertisement,
the role will probably carry an existing salary range, taking into account
the role's market value and its geographical location. To find out what you
can expect to earn in a wide range of jobs and locations, use totaljobs's free
salary checker.
What does equal pay really mean?
The Equal Pay Act, introduced in 1970, says that people should be paid the
same for either:
- the same or broadly similar work;
- work rated as equivalent under an employer's job evaluation scheme -
you can ask to see details of this;
- work of equal value - that is, different but comparable in terms of
the effort, skill, responsibility and decision-making required.
What are the main areas of pay inequality?
- Women - according to the a recent survey by the World Economic Forum
(WEF), women's salaries in the UK currently lag behind their male counterparts
by up to 18 per cent, despite the Equal Pay Act. Worryingly, in some sectors,
such as the Civil Service, the gender pay gap can be as wide as 25 per cent.
The reasons for the ongoing pay gap are complex, but include bosses'
tendencies to reward masculine qualities of 'toughness' and 'competitiveness',
as well as some firms still having work cultures and career structures that
favour male employees.
- Ethnic minorities, black and Asian workers - not only is it harder for
black and Asian workers to find work, according to the Commission for
Racial Equality, but they earn less too. According to a report from the
Cabinet Office's Performance and Innovation Unit on ethnic minorities and
the labour market, ethnic minority men and foreign-born ethnic minority
women were consistently paid less than white people. A Pakistani-born woman,
for example, typically received 34 per cent less pay than equivalent white
female colleagues for the same job. Although reasons for this inequality remain
unclear, the report concluded that discrimination is certainly a key factor.
- Geographical divisions - where you live can make a difference to how
much you are paid. Historically there are discrepancies between the more
lucrative salaries of London and the south east and other parts of the
country, with the higher cost of living in London and the south east often a
consideration.
- Job titles - managers, for example, working within marketing and personnel
earn more than their counterparts working within local and national government
who, in turn, earn more than those working in the transport or services
sector, according to figures from the Office of National Statistics New
Earnings Survey. If you are a jobseeker with transferable skills,
it is wise to look at the pay scales for similar job titles across different sectors.
Why do the pay gaps remain?
Many employers make salary decisions partly based on the job applicants' previous pay
history, which perpetuates the pay gap. This is an unfair way of deciding how much will
be paid to an individual for a role, regardless of gender or ethnic origin. Of course it's
hard to tackle employers preconceptions, but by checking out what the role is worth, you
will have a case to put forward if a boss tries to short change you in salary negotiations.
What happens if I accept a job and find I'm being paid less than equivalent
colleagues are?
You can bring an equal pay claim by lodging a case at an employment tribunal if you suspect
you are being paid less because of your ethnic origins or gender. You must identify a
person, the 'comparator', who is doing equal work in the same employment, and who is
earning a higher salary than you. 'Pay' in this context means not just your basic salary,
but also contractual terms and conditions such as pension, sick pay, holiday pay,
performance pay and overtime.
Although the employer can try to defend a claim by arguing that the reason for the
difference in pay is based on something other than gender or ethnic origin, such as market
forces, discrimination legislation introduced in 2001 made it easier to bring successful
pay claims in the case of sex discrimination. Under the rules of the Burden of Proof
legislation the burden is shifted onto the employer to disprove a pay regime is not
discriminatory, rather than on the employee who has to prove it is. It is hoped that the
Government will eventually include racial discrimination under the new rules.
What about the minimum wage?
The minimum wage was introduced by the Government in 1999 to ensure that workers
aged 18 and above receive a fair standard of pay, wherever they work. In October
2005, these rates are set to increase.
Workers aged 22 will receive a minimum of £5.05 per hour, with a further increase
pencilled in for October 2006, which will boost this minimum rate to £5.35
The present minimum for 18 to 21-year-olds is £4.25 per hour. This rate can sometimes
apply to new recruits over the age of 22, for the first six months of their training.
Where can I get more advice?
The Equal Opportunities Commission offers step by step guides to bringing claims, and
if you fill in a special form they will advise you on your chances of success.
www.eoc.org.uk.
The Campaign for Racial Equality is an independent organisation that exists to
tackle racial discrimination.
www.cre.gov.uk.
Find out more on the minimum wage at http://www.dti.gov.uk/er/nmw/.
More advice on your rights. |
