Under Directive (EU) 2023/970, the median gender pay gap is the difference between the median pay levels of female and male workers, expressed as a percentage of the median pay level of male workers. A practical formula is: (median male pay minus median female pay) divided by median male pay, multiplied by 100. To calculate each median, arrange the relevant pay values from lowest to highest and identify the middle value, using the applicable midpoint method where the population contains an even number of observations. The median metric is reported separately from the overall average gender pay gap because it describes a different feature of the pay distribution.
Jurisdiction: European Union
The Median Gender Pay Gap Uses the Middle of Each Pay Distribution
Article 3 defines the median gender pay gap by reference to the median pay levels of female and male workers. The median is a positional measure rather than an arithmetic average. To find it, an employer orders the relevant pay values from lowest to highest and identifies the middle point of the distribution. This makes the median less sensitive to unusually high or low pay values than the mean. Article 9 requires the median gender pay gap as a separate metric because it can reveal pay-distribution patterns that are not obvious from the organisation-wide average gender pay gap.
Calculate Female and Male Median Pay Separately
The employer first separates the relevant female and male worker pay values under the applicable reporting methodology. Each set is ordered from lowest to highest. Where there is an odd number of observations, the middle value is the median. Where there is an even number, a midpoint convention is normally required, such as taking the average of the two central observations, subject to the applicable official methodology. The result is one median pay level for female workers and one for male workers. Those two medians are then used in the percentage calculation.
Use the Male Median as the Percentage Denominator
A practical expression of the Directive's definition is: subtract the median female pay level from the median male pay level, divide the result by the median male pay level and multiply by 100. If the male median is 48,000 and the female median is 43,200, the difference is 4,800. Dividing 4,800 by 48,000 gives 0.10, or 10%. The same approach can produce a negative percentage where the female median exceeds the male median. Employers should document the exact calculation steps used in their reporting methodology.
Median and Mean Gaps Can Move Differently
The median and mean answer different questions. The mean reflects all pay values and can be strongly influenced by a relatively small number of very highly paid workers. The median focuses on the middle of each distribution and is therefore less affected by extremes. An employer can have a large mean gap but a smaller median gap where senior roles are disproportionately occupied by men, or the reverse where differences are concentrated around the centre of the pay distribution. Reporting both measures gives a more complete view of how pay is distributed between women and men.
Use the Same Pay and Population Rules Across the Calculation
A median calculation is only reliable if the employer applies the same pay definition and worker-population rules to female and male workers. The organisation should document which pay components are included, how incomplete periods are treated, how atypical working arrangements are handled and what reference period applies. Because the Directive requires national implementation, technical calculation instructions may differ by Member State. Employers should therefore follow the applicable national methodology and retain enough documentation to reproduce the result and explain any year-to-year methodology changes.
The Median Gap Is a Reporting Metric, Not a Complete Equal-Pay Test
The median gender pay gap shows whether the middle female pay level differs from the middle male pay level. It does not identify the cause of that difference or establish whether a particular pay decision is discriminatory. Article 9 therefore combines the median metric with the mean gap, variable-pay measures, quartiles and category-of-worker analysis. Employers should use the median as one diagnostic view within a broader reporting and equal-pay framework rather than treating it as a standalone legal conclusion.
Frequently Asked Questions
What is the median gender pay gap formula?
A practical formula is: (median male pay minus median female pay) divided by median male pay, multiplied by 100.
How do you find median pay?
Order the relevant pay values from lowest to highest and identify the middle value. Where there is an even number of values, use the midpoint method required by the applicable reporting methodology.
Why report both mean and median gender pay gaps?
They describe different features of the pay distribution. The mean is sensitive to extreme values, while the median reflects the middle of the distribution.
Related Guides
Official Sources
Requirements and practices differ by jurisdiction and organisation. Check current local law, official guidance and professional advice for a specific situation.