EHRC calls for employment law crackdown on pay inequality

Posted 06/09/2009

The Equality and Human Rights Commission (EHRC) has proposed that those responsible for employment law do more to combat pay discrimination against women in the finance industry.

A new report by the committee has revealed that female employees in the sector are facing lower rates of starter and basic salaries than their male counterparts.

The discrepancy in performance-related pay is even more pronounced, with women receiving average annual bonuses which are 80 per cent lower than those of men.

Responding to the findings, the commission insisted that regulators, trade unions and the government take action to bring an end to this pay inequality.

Among the suggestions made include a strengthening of the equality bill to allow women greater leeway to protest over unfair pay conditions.

Committee chair Trevor Phillips said: “The financial sector has the potential to play a central role in Britain’s recovery, but it has to address this shocking disparity of rewards.”

The EHRC’s findings echo those of a University of Cambridge study last month, which suggested that women in high-status finance jobs are receiving average salaries which are less than half of those earned by male colleagues.