What We Know About UK's Plan to Mandate Salaries in Job Ads

Prime Minister Andy Burnham is telling UK employers to start publishing salaries in job adverts now, ahead of a law that will make the practice compulsory, according to BBC News.

What is Burnham asking employers to do right now?

Burnham is urging firms to disclose pay voluntarily while legislation is drafted, rather than wait for the rule to take effect, the BBC reports. "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," he said, according to the outlet. Financial Secretary to the Treasury James Murray called the move "an important common sense reform" and told BBC Radio 4's Today programme that pay "shouldn't be a guessing game."

What would the new law actually require?

The government has not yet published the bill text, but says legislation making pay details compulsory in adverts will be brought forward "as soon as possible," per the BBC. The Cabinet Office ran a consultation on pay and discrimination over the summer; the government told the BBC that 94% of respondents backed greater transparency. Officials argue publishing salary ranges upfront could "expose unjustified differences in pay, give workers greater confidence to challenge discrimination and prevent disagreements over pay escalating into disputes," the BBC reported, citing government statements.

Why is this coming up now?

The push is tied to the government's effort to reduce the number of young people who are not in education, employment or training — nearly one million, according to the BBC — ahead of the final report of the Milburn Review into youth inactivity, due in the coming weeks. The timing also follows the UK equality watchdog saying, a week earlier, that employees should be legally able to find out what colleagues earn, the BBC noted.

What do employers and job sites say?

Adzuna co-founder Andrew Hunter told the BBC that pay transparency "should be the norm, not the exception" and said employers who list a salary "attract more applicants, and better-suited ones." But the CIPD, an industry body for HR managers, struck a more cautious note. Chief executive Neil Carberry said giving salary details is "a good thing" in principle but "more complicated" in practice, since "there isn't always a single fixed figure, and employers will want to set pay based on a candidate's skills, experience and potential," per the BBC.

How does the UK plan compare with the EU's rules?

The UK proposal mirrors measures already rolling out in the European Union, where employers must disclose initial pay or a pay range for new roles, either in the job ad itself or before an interview, the BBC reported.

By the numbers

• 51% of job adverts on Adzuna's UK site carried salary information in September, though that share has been falling in recent years, according to the BBC.
• CIPD research found pay ranges disclosed by some employers span more than £10,000, the BBC reported, meaning not all listings are "fully transparent."

No start date for the legislation has been confirmed.

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