What is Unadjusted Gender Pay Gap? Definition and Context
Credibility Check & Framework Comparison
To ensure absolute regulatory accuracy and reliability, we verify definitions across leading international frameworks before presenting our synthesized SME context.
EFRAG / ESRS S1
"The difference between the average gross hourly earnings of male and female employees, expressed as a percentage of male earnings."
GRI
"A standard metric calculating the ratio of the basic salary and remuneration of women to men for each employee category."
EcoVadis
"Social indicators assessing gender equality, compensation practices, and actions taken to close pay gaps in the workforce."
ExecutESG Consolidated Definition
Unadjusted Gender Pay Gap
The unadjusted gender pay gap is a social KPI that measures the difference between the average gross hourly earnings of male and female employees across the entire organization, expressed as a percentage of the average earnings of male employees.
$$\text{Gender Pay Gap (%)} = \left( \frac{\text{Average Male Hourly Pay} - \text{Average Female Hourly Pay}}{\text{Average Male Hourly Pay}} \right) \times 100$$
"Unadjusted" Aspect:
Unlike an "adjusted" pay gap, this metric does not account for differences in role, seniority, or education. It highlights overall structural distribution of genders within the firm.
SME Relevance & B2B Inbound Action:
Mandated in EFRAG VSME B5. SMEs can enter anonymized payroll data into Aura Understand to automatically calculate this ratio and demonstrate equal opportunity progress to auditors.
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