The case of Denmark and the United Kingdom

Denmark: Pay gap reporting, remedies and fines

Denmark’s equal pay law requires companies with at least 35 employees to report gender-disaggregated pay data annually to the national statistics office and employee representatives. If there are at least ten employees of each gender per job group, the company must list the employees per job function, broken down by gender, hours worked and wage difference. Although this data is not public, employers are obliged to pass it on to employees. Companies may instead choose to prepare their own pay equity report, which must include a description of the conditions affecting the pay of men and women in the company, an action plan to address pay gaps, and a follow-up plan. Alternatively, employers can opt for a salary audit. Companies that do not comply with reporting or auditing obligations can face fines. Employees who experience pay discrimination can file a lawsuit in court and receive compensation for the pay difference.

Research suggests that the Danish wage reporting law has reduced the wage gap by 2 percentage points. Companies just above the reporting threshold of 35 employees tended to hire and promote more female workers than companies just below the threshold.

United Kingdom: Gender pay gap reporting and possible fines