Companies that fail to address pay differences between male and female employees are to be highlighted in new league tables. However female employees will have to wait another two years to find out this information.
The new rule will apply to middle to large sized companies with over 250 employees and will affect around 8,000 employers across the UK.
The firms will need to start calculating the pay gap from April 2017 – 12 months ahead of the first tables being published.
Many are often surprised to learn that in the age of equality, in the UK, women still earn 20 percent less than men.
Under the plans announced by Women and Equalities Minister Nicky Morgan, private companies and voluntary organisations will be required to reveal the number of men and women in each pay range to show where pay gaps are at their widest.
Crucially bonuses will be included in the figures to make sure a light is shone on pay disparity in City firms, where there is suspected to be a particular problem with pay inequality.