Research from the Chartered Institute of Personnel and Development shows that only 18% of employers always publish specific salaries in job adverts, while 41% always include salary ranges. Prime Minister Andy Burnham announced plans for a new “say what you pay” law that will make it a legal requirement for all UK employers to disclose what they are willing to pay new hires.
Under the upcoming legislation, jobseekers will no longer have to spend time and effort applying for positions without knowing the potential pay packet. Burnham stated that whether someone is a young person starting out or a parent supporting a family, they deserve to know what a job pays before applying. The government intends to bring forward the legislation as soon as possible, though businesses have been urged to start publishing pay details immediately rather than wait for the legal change.
Public Sector Transparency Versus Private Practice
Data from the CIPD indicates that the public sector and charities are more likely to reveal pay information than private firms. However, even among employers who disclose figures, transparency is often incomplete. The research found that pay ranges are more common than specific salaries, and these ranges are sometimes wider than £10,000.
CIPD chief executive Neil Carberry noted that while giving salary details sounds straightforward in principle, practice is more complicated. Carberry explained that a single fixed figure does not always exist, as employers want to set pay based on a candidate’s skills, experience, and potential. He added that drafting job adverts is best left to good employer practice rather than government regulation, and the government has stated it will outline enforcement and information requirements in due course.
Did You Know? Research conducted by the CIPD surveyed 832 decision-makers and found that roughly 27% of employers never included salary information in their job postings.
Tackling the Gender Pay Gap and Youth Barriers
Advocates for the new rules argue that salary secrecy disproportionately harms women and younger workers. Writing in the Mirror, Equalities Minister Bridget Phillipson warned that women walk into pay negotiations blind and are less likely to negotiate, leaving them vulnerable to lowball offers that depress their lifetime earnings. Penny East, chief executive of the Fawcett Society, added that requiring published salaries is an important measure toward tackling the gender pay gap.
The policy also ties into broader efforts to address youth inactivity and help young people enter the workforce. Nishi Mayor of the Youth Futures Foundation noted that with one in eight 16 to 24-year-olds currently not in education, employment, or training, clear pay information helps remove barriers and lets applicants make informed decisions. TUC general secretary Paul Nowak welcomed the clampdown on what he called a disrespectful practice, urging the government to also require employers to list flexible working options in every posting.
Current Rules on Salary History and Employee Inquiries
Alongside job ad requirements, other bodies have pushed for broader reforms to workplace pay practices. Last week, the Equality and Human Rights Commission stated that publishing salaries is a positive step and recommended that employers be prevented from asking applicants about their current salary to stop historic discrimination from continuing. UK employers are currently permitted to ask job seekers what they earn in their current role, though applicants are under no obligation to answer.
The EHRC also proposed that bosses should be required to respond to questionnaires about colleagues’ pay to help cut pay discrimination. At present, employers are not legally obligated to respond to employee requests for salary information regarding co-workers.
CIPD Data Shows Low Rates of Specific Salary Publication
What percentage of employers currently publish specific salaries?
According to CIPD figures, only 1 in 5 employers, or 18%, always publish specific salaries in their job adverts, while 41% always include salary ranges.
Are UK employers currently banned from asking about past salary?
No. Employers are currently allowed to ask applicants how much they are paid in their current role, though job seekers are under no obligation to tell them.
Which types of employers are most likely to disclose pay information?
Research indicates that the public sector and charities are more likely to reveal pay information than private firms.
What impact do you think mandatory salary disclosures will have on application rates for private sector firms?
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