How the gender pay gap is calculated
The EU Pay Transparency Directive defines the gender pay gap as the difference between the average pay levels of female and male workers, expressed as a percentage of the average pay level of male workers. This calculator uses exactly that formula: (average men minus average women) divided by average men, times 100. A positive number means men earn more on average; a negative number means women do.
The mean gap uses the arithmetic average, so a few very high salaries can move it a lot. The median gap compares the middle salary of each group and is less sensitive to outliers. Looking at both gives a fairer picture. To compare full-time and part-time staff, the calculator converts every salary to a full-time equivalent based on 40 hours per week. If your full-time week is shorter, enter the actual hours and the result stays comparable.
Pay quartiles split all employees, sorted from lowest to highest full-time pay, into four equal groups. The share of women and men in each quartile shows where each group sits in your pay structure. Many gaps come less from unequal pay for the same job and more from women and men being spread unevenly across levels.
Under the directive, employers with 100 or more workers report their gap, with staggered thresholds and dates. If a reporting employer finds a gap of at least 5% in a category of workers that it cannot justify with objective, gender-neutral criteria and does not remedy within six months, it carries out a joint pay assessment with workers' representatives. Smaller employers have no reporting duty under the directive, but knowing your numbers helps you answer pay information requests and build fair salary bands.
Frequently asked questions
- What is the difference between the mean and the median gap?
- The mean gap compares average salaries and reacts strongly to very high or low salaries. The median gap compares the middle salary of women and men and is more stable. Reports under the directive include both.
- Why are 'other / not specified' employees excluded?
- The directive defines the gap between women and men, so the calculation only uses those two groups. Other employees are still counted in the pay quartiles.
- Does a gap of 5% mean we are breaking the law?
- No. A gap can have objective, gender-neutral reasons. For reporting employers, a joint pay assessment follows only when a gap of at least 5% in a category is not justified and not remedied within six months.
- Is my data sent anywhere?
- No. All calculations run in your browser. Nothing is stored or sent to ValuGrade or anyone else. Be careful when sharing results for small categories, because they can reveal individual pay.