Gender pay gap reporting guidance has changed. What does this mean for employers, and what steps should they now be taking?
Published: 28 October 2026
Authors: Ruman Khera
On 21 May 2026, the Government Equalities Office updated its guidance on gender pay gap reporting to reflect the Supreme Court's decision in For Women Scotland Ltd v The Scottish Ministers. In that case, the Supreme Court confirmed that the terms "man", "woman" and "sex" in the Equality Act 2010 refer to biological sex.
This represents a shift from the earlier guidance, which encouraged employers to be sensitive to how an employee identifies their gender and noted that the gender pay gap regulations did not define the terms "men" and "women".
Key changes to the guidance
The updated guidance revises the sections on "Preparing your data" and "Making your calculations". In particular, the previous section on "Recording employees' gender" has been replaced with guidance on "Recording employees' sex". References to "gender" throughout the calculation’s guidance have also been amended to refer to "sex" instead.
Where organisations do not currently hold data relating to employees' biological sex, the guidance states that employers should take "reasonable and proportionate" steps to obtain that information.
Collecting and recording sex data
The guidance recommends that employers establish a clear policy or process for collecting information about employees' sex. Any process should be applied consistently to all employees, irrespective of their sex or gender identity.
Employers are advised not to single out individual employees when seeking information about sex or gender identity. Instead, organisations should first consider information already held within HR, payroll or other employment records. Where that information is unavailable or unreliable, employers should adopt a proportionate and confidential process for employees to confirm or update their recorded sex. The guidance further advises that employers should not require employees to provide documentary evidence of their biological sex.
Impact on employees with a gender recognition certificate
The guidance states that, for the purposes of gender pay gap reporting, employers should record trans employees according to their biological sex, including where the employee holds a Gender Recognition Certificate (GRC). The employee's acquired gender, as recorded on a GRC, should not be used for gender pay gap reporting purposes.
The guidance further states that an employer will not be committing an offence by disclosing information regarding an employee's sex prior to obtaining a GRC where such disclosure is necessary to comply with the legal requirements relating to gender pay gap reporting.
Next steps for employers
Considering the revised guidance, employers should take proactive steps to ensure that their HR and payroll systems accurately record the information required for gender pay gap reporting.
Organisations that do not record biological sex may wish to consider implementing an appropriate and confidential process for collecting this information, ensuring that any approach is applied consistently, sensitively and in accordance with the updated guidance.
Employers should continue to respect employees' gender identity by recording their preferred pronouns and maintaining accurate records, updating these where an employee requests that changes be made.