'Not the end goal' | What impact will mandatory ethnicity & disability pay gap reporting have on employers?

The Government has confirmed plans to introduce mandatory ethnicity and disability pay gap reporting for large employers, in a move aimed at improving transparency and tackling workplace inequality.

Under the proposals, organisations with 250 or more employees will be required to publish six key pay gap metrics alongside workforce composition data, mirroring existing gender pay gap reporting requirements. The measures will include mean and median pay gaps, bonus gaps, and the distribution of employees across pay quartiles.

The announcement follows a consultation in which 87% of respondents supported mandatory reporting, signalling strong backing from businesses and stakeholders.

What employers will be required to report

Alongside headline pay gap figures, employers will need to provide additional context through workforce breakdowns by ethnicity and disability status, including data on employees who choose not to disclose this information.