Muslim Council of Britain urges mandatory faith pay gap reporting

Muslim Council of Britain urges mandatory faith pay gap reporting
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The Muslim Council of Britain has called on the UK government to extend mandatory pay gap reporting to include religious affiliation alongside planned race and disability measures in its submission to a consultation for employers with 250 or more staff, Hyphenonline.com reported.

The Office for Equality and Opportunity launched the March consultation to inform an Equality (Race and Disability) Bill expected within three years. The MCB argues that reporting frameworks must account for religion, gender, and maternity leave holistically.

MCB spokespeople warn faith pay gap data may be skewed or risk identifying individual salaries in small groups. Eight years after gender reporting became mandatory, the gap has narrowed by about 20%, albeit partly through men’s pay cuts.

A 2016 Women and Equalities Committee report found Muslims earn 22.5% less than those with no religion and occupy just 16% of managerial roles versus a 30% average. Since 2022, charities like Young Lives vs Cancer have voluntarily reported faith pay gaps.

Some organisations already gather diversity pay data on ethnicity, sexual orientation, disability, faith, and age to inform their policies and practices.

A Cabinet Office spokesperson said consultation responses are under review and confirmed commitment to legislate on mandatory ethnicity and disability pay gap reporting in upcoming equality legislation.