Government urged to force firms to report ethnicity pay gap

According to the findings of a recent study black, Asian and ethnic minority employees (BAME) are losing out on £3.2 billion pounds a year in wages compared to white colleagues doing the same work.

The research by the Resolution Foundation has put pressure on the Government, with Ministers urged to press ahead with planned proposals to force large firms to report their ethnicity pay gap.

The extent of the imbalance in the salaries of Britain’s 1.9 million black, Indian, Pakistani, Bangladeshi and other minority workers was highlighted in the analysis.

It was found that once differences in average qualifications and job types were taken into account, the pay gap rose by as much as 17 per cent or around £3.90 an hour for black male graduates, Pakistani and Bangladeshi male graduates earned on average £2.67 an hour less (12 per cent) while for female graduates black women faced the biggest pay gap of on average £1.62 per hour (9 per cent).

The Government are now being called to bring in similar legislation to last year that required companies to publish gender pay gaps, but this time for ethnic minorities.

The gender pay gap legislation, which came into effect in April this year, requires employers with 250 or more staff to publish annual calculations of the disparity between male and female pay. On average they found that eight in 10 firms paid men more than women.

Kathleen Henehan, research and policy analyst at the Resolution Foundation, said: “Black, Asian and minority ethnic workers have made important gains in the labour market in recent years. A record number of young BAME workers have degrees, and a record number are in work.

“However, despite this welcome progress, many of Britain’s 1.6 million black, Asian and ethnic minority workers face significant disadvantages in the workplace.

“After the successful steps taken to expose and tackle the gender pay gap in 2018, we now need greater accountability on the ethnic pay gap in 2019.”