Firms with 250 or more employees will have to publish their gender pay gap under measures being announced by the Government to tackle inequality.
Under the plans, the Government will from April 2018 publish a series of league tables detailing the best and worst companies, broken down by each sector.
Businesses will be forced to disclose how many men and women fall into each salary band to identify companies where men dominate the highest-paid positions.
Women and Equalities Minister Nicky Morgan, said: “In recent years we’ve seen the best employers make ground-breaking strides in tackling gender inequality.
“But the job won’t be complete until we see the talents of women and men recognised equally and fairly in every workplace.
“That’s why I am announcing a raft of measures to support women in their careers from the classroom to the boardroom, leaving nowhere for gender inequality to hide.
“At the same time I’m calling on women across Britain to use their position as employees and consumers to demand more from businesses, ensuring their talents are given the recognition and reward they deserve.”
Financial companies will also have to reveal how much more they pay men than women in bonuses for the first time. Similar measures will also apply to the public sector, where fewer than 40 per cent of female civil servants are women.
Tom Castley, Vice President of EMEA at Xactly, a leading solution provider, said: “The gender pay gap is an ongoing battle and there is much to be done to combat the current 9.4 per cent gap. Eradicating the gender pay gap should be a priority for every UK business and the announcement of requiring transparency of paid bonuses is a welcome first step to tackling this challenge on a business front.
“Through using the right tools, employee performance can be tracked and analysed and highlight where gaps in the business may lie and how they can be bridged. The employees sales ability would be noticed and rewarded, irrespective of gender.
“With women making less money across the spectrum regardless of their career paths, it’s time for every employer to take a holistic look at their compensation model to ensure there are no gender pay gaps. Every organisation can benefit from a thorough analysis of its compensation plan.
“By making a fair and accurate plan, organisations ensure that the workforce is fully enabled to drive the businesses to success. This not only creates a culture of productive employees, but can reduce the gender pay gap; hopefully bringing us closer to workplace equality that bit sooner.”