Banco de Portugal has placed on public consultation a draft Instruction aimed at regulating the reporting of information on remuneration practices, pay gaps between men and women and higher ratios.
The Bank of Portugal (BdP) has published in public consultation the mandatory reporting of gender pay gap by financial institutions.
The institutions covered are Caixa Geral de Depósitos, Banco Comercial Português, Novo Banco, BPI, Santander, Crédito Agrícola, Banco Montepio, BIC, Haitong Bank, Banco CTT, BIG Finantia and Banco Atlântico Europa.
The draft instruction, published this Friday, stems from the new version of the European Banking Authority (EBA) Guidelines, according to which “the gender pay gap should be calculated as the difference between the average remuneration of men and women, expressed as a percentage of the average remuneration of men”.
For this calculation, “institutions should use the annual gross remuneration of staff calculated on a full-time equivalent basis.” The EBA further states that “when calculating the gender pay gap, institutions should take into account total remuneration awarded and also, on a best efforts basis, the provisions relating to working time, annual leave and other financial and non-financial benefits.”
The calculation has to consider, in addition to salaries, benefits such as “company car, interest-free loans, free company day-care” or other benefits that are provided to employees.
Institutions must establish a list of “employees who are employed at the end of the financial year, i.e. employees who have left the institution during the financial year are not considered.
Contributions to the public consultation runs can be delivered to the regulator until July 10, 2023.