Spain Gender Pay Gap Reporting: What You Need to Know

To find the full text of the Remuneration Regi in Spain, refer to Royal Decree 902/2020.

The reference period for the Remuneration Registry is generally the calendar year — for example, showing base pay, salary supplements, and extra salary payments made from 1 January to 31 December. However, employers may need to modify this timeframe in the event of a substantial alteration of any of the elements making up the registry (e.g., events like the modification of the collective agreement, or other substantial changes to the professional classification).

The Remuneration Registry must cover the entire workforce, including management personnel and senior officials. All employed persons must be included, regardless of their contract type and as long as the contract is in force at any time in the reference period, and they have received some remuneration in said period.

Some employees are excluded from the Registry. Syndio provides Global Pay Reports customers with detailed guidance on which employees are excluded.

The pay gap requirement in Spain focuses primarily on gender. The reporting requirements and metrics are designed to assess and address the gender pay gaps within organizations. This will also be the case with the EU Pay Transparency Directive.

While the law doesn’t explicitly require reporting on race/ethnicity pay gaps, many organizations also analyse race and ethnicity gaps as part of their pay transparency strategy, where it is permitted by law.

Syndio’s PayEQ solution allows you to analyse pay equity and opportunity gaps across multiple dimensions, including race, gender, ethnicity, age, disability, and more. This provides a comprehensive understanding of how different groups are affected by your policies and practices.

Syndio provides software and expert professional services to help companies comply with pay equity, pay reporting, and pay transparency regulations. Syndio helps you analyse, remediate, explain, and report on pay gaps so you can stay on top of compliance in Spain. Learn more: https://synd.io/global-pay-reporting/.

The law in Spain analyses pay gaps, not pay equity. What’s the difference? 

An unadjusted pay gap (also called an “uncontrolled pay gap”) is the difference between the median or mean pay of two groups, such as men and women.

• Median pay gap: Imagine lining up all the earnings for two groups of employees (e.g., men and women) from lowest to highest. The median pay gap is the difference between the middle earnings in each line. It’s a good indicator of typical pay differences.
• Mean pay gap: This compares the average earnings of each group. However, it can be skewed by extremely high or low earners.

Pay equity, or the adjusted pay gap, accounts for factors that can legitimately explain differences in pay, such as performance ratings, tenure with the company, or location.

The median and mean pay gaps provide valuable insights, but they don’t tell the whole story. There may be legitimate reasons for pay differences between employees. The adjusted pay gap (pay equity) accounts for these factors, revealing whether a pay disparity truly exists (which is unlawful in many countries) so you can take corrective action. Syndio’s PayEQ software is the trusted solution for global enterprises to rapidly identify, address, and prevent pay disparities.