Definition
This metric tracks the gender pay gap by comparing the average gross hourly earnings of men and women employees, as measured in the last calendar year, and transforming that difference into a percentage format.
Expanded Definition
Here, Novata is tracking the unadjusted gender pay gap. Employees are defined by local rules and regulations. The unadjusted gender pay gap is calculated by subtracting the average woman’s pay to the average man’s pay and dividing that number by the average man’s pay.
Gross earnings are defined as earnings “paid in cash directly to an employee before any deductions for income tax and social security contributions paid by the employee. All bonuses, whether or not regularly paid, are included (13th or 14th month, holiday bonuses, profit-sharing, allowances for leave not taken, occasional commissions, etc.).”
The GRI advises that employee pay includes base salary plus any additional amounts paid to a worker. This includes payments “based on years of service, bonuses including cash and equity such as stocks and shares, benefit payments, overtime, time owed, and any additional allowances, such as transportation, living and childcare allowances.”
