ESRS Standard
ESRS Standard
95 The entity shall disclose the percentage pay gap between its male and female employees and the ratio of the compensation of the highest paid individual to the median compensation of its employees.
96 This disclosure requirement has two Targets: One is to provide an understanding of the extent of any pay disparitybetween women and men among the company's employees;
The second is to illustrate the extent of pay inequality within the company and whether there are large pay gaps.
97 The information referred to in paragraph 95 shall include the following:
(a) The gender pay gap, i.e. the difference between the average earnings of female and male employees, expressed as a percentage of the average earnings of male employees.
b) The ratio of the annual total remuneration of the highest paid individual to the median annual total remuneration of all employees (excluding the highest paid individual); and
c) Where applicable, any background information necessary for an understanding of the data and the way in which the data has been compiled and any other changes to the underlying data to be taken into account.
98. the company may provide a breakdown of the gender pay gapreferred to in paragraph 97(a) by employment type and/or country/segment. The entity may also disclose the gender pay gap between employees by type of employment, broken down by ordinary base salary and any supplementary or variable components.
99. with respect to paragraph 97(b), the entity may disclose this figure adjusted for differences in purchasing power between countries, in which case it shall disclose the method used for the calculation.
Application Requirements (AR)
Application Requirements (AR)
AR 98. in compiling the information required by paragraph 97(a) on the gender pay gapbetween female and male employees ('gender pay gap'), the entity uses the following methodology:
(a) considers the gross hourly earnings of all employees; and
b) applies the following formula to calculate the gender pay gap:
Gender specific pay gap = (Gross_men - Gross_women) / (Gross_men) x 100Gross_men: Average gross hourly earnings of male employees
Gross_women: Average gross hourly earnings of female employees
AR 99. In providing the information required by paragraph 97(a), the company shall provide all background information necessary to understand the data and the way in which the data were collected (methodology). Information on how objective factors such as the type of work and country of employment influence the gender pay gap may be provided.
AR 100 The company's gender pay gapmeasurement shall be disclosed for the current reporting period and, if disclosed in previous sustainability reports, for the previous two reporting periods.
Ratio of total remuneration
AR 101 When disclosing the information required by paragraph 97(b), the company shall do the following:
(a) It shall consider all Employee;
(b) Depending on the entity's remuneration policy, it shall consider all of the following:
i. Base salary, i.e. the sum of guaranteed, short-term and fixed cash remuneration,
ii. Cash benefits, i.e. the sum of base salary and cash allowances, bonuses, commissions, cash profit sharing and other forms of variable cash payments,
iii. Benefits in kind such as cars, private health insurance, life insurance, wellness programs, and
iv. direct compensation, i.e. the sum of cash benefits, non-cash benefits and the total fair value of all annual long-term incentives (e.g. stock options, restricted stock or shares, performance shares or shares, phantom shares, stock appreciation rights and long-term cash payouts),
c) it uses the following formula to calculate the ratio of Annual total remuneration:
Annual total remuneration ratio= total remuneration / medianTotal remuneration: Annual total remuneration for the highest paid person in the company
Median: Median Annual total remuneration for the Employee (excluding the highest paid person)
AR 102 To illustrate the background information, the company may provide an explanation to better understand the data and the way in which the data was compiled (methodology). Quantitative data such as Annual total remuneration ratios alone may not be sufficient to understand pay differentialsand their causes. For example, pay ratios may be influenced by the size of the company (e.g. revenue, number of employees), its industry, its employment strategy (e.g. reliance on outsourced labor or part-time workers, high levels of automation) or currency fluctuations.
Examples from past practice
Examples from past practice
Examples are provided merely as an indication of how a disclosure requirement has been reported by other companies to date. Audited ESRS reports are not yet available. There is no guarantee of accuracy and completeness.
S1-16 - Pay gap
The pay gap between women and men amounted to 2.9% in 2023. We have introduced a remuneration system that ensures fair remuneration for employees in the same or similar positions worldwide, regardless of gender. In one of our markets, wages are regulated by a collective agreement that applies to permanent staff with valid employment contracts as well as certain other agreements.
The wage structure includes fixed and variable components as well as additional payments for Overtime, on-call time and work on public holidays. We ensure that the wages for a standard working week do not fall below the relevant national or union minimum wage rates and that local labor laws are complied with.
Our remuneration policy is based on the applicable labor laws and regulations. However, employees with employment agreements outside of traditional employment relationships are exempt from certain provisions of the collective agreement, such as regulations on dismissal and remuneration.
Temporary workers employed through agencies work under a charter for temporary work. These employees are deployed for fixed periods under our supervision.
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