In order to fight against gender inequalities at work, French law no. 2018-771 adopted on 5 September 2018 introduces an obligation for employers to achieve the principle of equal remuneration between women and men (as opposed to a best efforts obligation). To do so, companies with 50+ employees will be required to calculate an “equal pay index”, based on gender equality indicators. They must then publish their results on their website and remedy inequalities in the event of insufficient results. They must also disclose the result to their personnel representatives and to the French labor authorities.
The gender equality indicators that must be taken into account are:
– the gender pay gap, calculated according to the average pay of women as compared to men, by age group and equivalent job category;
– the difference in the rate of individual salary increases between women and men;
– the percentage of employees who were granted an increase in the year following their return from maternity leave, if increases were granted during the period during which the leave was taken;
– the number of employees of the under-represented sex among the ten employees with the highest remuneration.
In addition, companies that have 250+ employees must take into account a fifth indicator: the gap in promotion rates between women and men.
Points will be granted for each indicator depending on the results achieved. The results are then aggregated in order to obtain an overall result ranging from 0 to 100 points. French Decree n°