Gender pension contribution commentary
Men and women currently make similar percentage contributions into their pension
- Percentage pension contributions are similar for men and women; there is a small mean gap of 0.3% in favour of men and no median gap.
Pension contributions are typically expressed as a percentage of a colleague’s earnings. When we compare pension contributions on this basis, there is very little difference between the contributions made by men and women at the charity.
Part-time working means there is a gender gap favouring men in the value of pension contributions
- There is a gender gap in favour of men for pension contribution values, with a mean gap of 17.1% and a median gap of 10.6%.
- This is only partly explained by the gender pay gap; mean gap 7.4%, median gap 3.8%.
- The primary cause of the wider gap is the higher proportion part-time female colleagues employed by the charity.
As we have seen in the previous point, there is little difference between the percentage pension contributions made by men and women. As a result, we might expect the mean gap in the value of pension contributions to be similar to the mean gender pay gap described in the previous section, 7.4%. The fact that the mean pension gap is wider, 17.1%, suggests that there are other factors increasing the gap.
Pension contributions are based on colleague pay, so the value of pension contributions for part-time colleagues will be lower than for full time colleagues.
We have a higher proportion of women than men working part-time, 28% compared with 8%, so women are more than three times more likely than men to work part-time Also, on average our part-time women work shorter hours than our part-time men.
This explains the wider gap in terms of pension contribution values.
We provide colleagues with a degree of flexibility to work around other life commitments. That more women than men utilise this flexibility may be related to childcare – our analysis shows that around half of our female colleagues returning from maternity leave do so on reduced hours.
We do not feel that the existence of a gender pension gap means that we should restrict the flexibility available to all colleagues, but we will continue to focus on educating colleagues that a reduction in working hours not only reduces pay, but also those benefits that are linked to pay.