The Government will introduce a "say what you pay" law requiring bosses to declare salaries on job adverts, a move aimed at tackling pay inequalities and supporting young people entering the workforce.
According to figures from the CIPD, less than half (41%) of employers always publish salary ranges and only 1 in 5 (18%) always publish specific salaries. This means jobseekers are forced to waste time applying for roles without knowing the potential pay packet.
Government's plan to enforce salary transparency
The measure is designed to help address entrenched pay inequalities that disadvantage women and to help young people applying for their first job, as part of the Government's efforts to fix the crisis of young people out of work, employment or study.
Prime Minister Andy Burnham said: "Whether you're a young person starting out or a parent trying to support your family, you should know what a job pays before spending your time and effort applying for it. That's why we will make it a legal requirement for all employers to say what you pay."
Support for women and equal pay
Writing in the Mirror, Equalities Minister Bridget Phillipson said women were much less likely to receive fair pay if they walk into negotiations without knowing the salary. She said: "The evidence shows that women are less likely than men to negotiate pay and more likely to face backlash when doing so, cliches around being 'too demanding' putting their chances of getting the job at risk."
Penny East, Chief Executive of the Fawcett Society, said it would mean women no longer have to make decisions based on vague promises or unclear terms. She said: "For too long, salary secrecy has put women at a disadvantage, leaving them negotiating in the dark and making it much harder to challenge unfair and unequal pay. Requiring employers to publish salaries in job adverts is a significant step towards making work fairer for women and tackling the gender pay gap."
Union welcomes end to 'disrespectful practice'
Top union leader Paul Nowak welcomed an end to the "disrespectful practice" of leaving candidates in the dark on pay. The TUC General Secretary said: "Why should a candidate be expected to go through a lengthy application and interview process without knowing whether the job will actually pay them enough to get by?"
He added: "All too often, it's women, Black, minority ethnic or disabled workers who end up paying the price - being offered lower salaries than their colleagues, or finding the role lacks the flexibility they need. That's why the government should also require employers to list flexible working options in every posting."
The Government will bring forward legislation as soon as possible to enforce the demand, but the Prime Minister has urged all businesses to act now, rather than wait for the law to change.
