According to the Equal Pay Act, first introduced in the 1960s and reinforced by the Equality Act in 2010, employees have the right to the same pay as those of the opposite sex if their work is similar, rated as equivalent through job evaluation or of equal value in the demands made (i.e. responsibility, skill, effort, etc). Despite this, salaries continue to be affected by industry sector, geographical region and even ethnic origin and gender.
As a result it is crucial that you do some research on how much the job for which you are applying is worth. You will be glad of this knowledge if you become involved in any negotiations over salary package at interview. If the pay isn’t advertised with the job description, try to find out what the going industry rate is for such a position - taking into account the location of the work.
Areas of pay inequality:
Gender
The Equality Act 2010 deals with discrimination on grounds of sex or marriage and applies to both men and women. Despite laws existing for decades to help ensure equal pay, women’s average full-time pay still lags behind men’s. Many companies still have career structures in place that favour men while it is generally believed that a good deal of firms tend to encourage a male working culture. The vast majority of high ranking employees and bosses are male, though there is constant pressure for women to be more fairly represented at the highest level.
Race
The Race Relations Act 1976 (RRA) first made it unlawful to discriminate on grounds of race, colour, nationality, or ethnic or national origin. The Equality Act 2010 further enfored the laws the RRA laid down. Nonetheless, ethnic minorities in particular are often paid less well than their colleagues.
Industry divisions
Different industries generally offer varying salary packages for similar job titles. Managers working with a banking and finance environment, for example, traditionally earn considerably more than those working in the public sector. If you feel you have transferable skills and are unsure as to which industry you would like to work in you should research the average rates of pay for similar job titles across different sectors.
Geographical
Those working in London and the South East generally earn more than workers doing the same job anywhere else in the country, however the cost of living is highers in the south east than anywhere else in the UK. When searching for a job you should always weigh-up the salary benefits against the cost of living in that area, however, as accommodation and amenity prices are generally higher where salaries are higher.
The lucrative London and South East salaries are commonly blamed for a ‘brain drain’ in the UK: a high proportion of UK graduates moving to London to seek work on graduation. You can find out more about the issues raised here by visiting Diversity Milkround.
If you are concerned about your pay and would like to know more about your rights, visit the official employment conciliators and advisors ACAS (www.acas.org.uk) for further information.