CALCULATION TEMPLATE
This worksheet includes a template for calculating gender pay scale variance. Organizations are welcome to use a different template as long as the submitted data meets the documentation requirements.
ORGANIZATIONS WITH MULTIPLE LOCATIONS
EXAMPLE:
- An architecture firm has offices in New York, NY, Washington, DC, and Atlanta, GA.
- The maximum gender pay scale variance for employees in the New York office is 7.5%.
- The maximum gender pay scale variance for employees in the Washington office is 6.8%.
- The maximum gender pay scale variance for employees in the Atlanta office is 4.5%.
- The maximum gender pay scale variance for all employees across the three offices is 11%, due to cost-of-living differences between locations (i.e., the difference between the highest paid individuals within a pay class based in New York and the lowest paid individuals within a pay class based in Atlanta is greater than the difference between individuals within a pay class who are all based in the same location).
Single Office Basis:
- The firm uses the individual office with the greatest gender pay scale variance, in this case, New York with 7.5%. Taking this approach, the firm would achieve Level 2.
All Offices Basis:
- The gender pay scale variance across all offices is 11%. Taking this approach, the firm would achieve Level 1.
VARIANCE CALCULATION
For each pay class:
- Average (mean) base salary and bonus for employees who identify as cisgender men = A
- Average (mean) base salary and bonus for employees who identify as women, transgender, or nonbinary = B
Where A is greater than B:
- Variance = [(A-B)/A] x 100
Where B is greater than A
- Variance = [(A-B)/B] x 100
Organizations can also choose to use the Gender Pay Gap Calculator from Dezeen. For each pay class:
- Input data for employees who identify as cisgender men where prompted for “male employees.”
- Input data for employees who identify as women, transgender, or nonbinary where prompted for “female employees.”
For the purposes of this Indicator, variance percentages must be reported as is (i.e., out to two decimal places) and cannot be rounded.