Corporate report

HMRC gender pay report 2025

Published 16 December 2025

Executive summary

HMRC is committed to closing the pay gap and our approach goes beyond focusing solely on pay. Our actions form part of the work we do to achieve our Public Sector Equality Duty (PSED) equality objectives

Our equality objectives support the delivery of HMRC’s strategic objectives, one of which is to build a high-performing skilled and engaged workforce by securing and retaining the best people, working in the right place, at the right time, with the right incentives for now and for the future.

In 2024 to 2025, HMRC’s mean gender pay gap decreased by 0.6 percentage points to 5.0% and the median gap decreased by 0.5 percentage points to 5.0% – the mean gender bonus gap fell by 2.1 percentage points to 16.6% in 2025. For comparison, the gap is lower than the UK overall median pay gap of 7.0% and lower than both the Civil Service median of 6.4% and mean of 6.9%.

Closing the gender pay gap is a long-term goal that we have been working towards for many years, and we have carried out deep dive analyses to understand the causes. These showed that the distribution of men and women in our workforce is the largest contributing factor:

• overall, there are more women than men in lower paid roles and more men than women in higher paid roles – for example, 66% of colleagues working in an Administrative Assistant (AA) role were women, compared to 44% women in Senior Civil Servant (SCS) roles
• if the number of men and women at each grade, work pattern and location were equal, our mean gender pay gap would shrink to 0.1% and our median gap would close altogether (0% gap)

We know there is more to do to close the gender pay gap. We continue to make progress by increasing the representation of women in senior roles. From March 2024 to March 2025, the representation of women in Grade 7 roles increased from 46% to 47% and from 44% to 45% at Grade 6. At SCS grades, it dipped from 46% to 44%. With the smaller number of colleagues at SCS grades, data are more easily skewed, and we expect that the increase at grade 7 and 6 will, in time, produce a sustained balance of men and women at SCS grades.

Actions

Year-on-year actions that support a closing of the gender pay gap include:

Employment policies and processes

HMRC has a range of policies and processes in place that indirectly support the closing of our gender pay gap, such as:

• policies that recognise the many family structures and ways in which a colleague may become a parent
• a wide range of flexible working arrangements which support colleagues with parental and caring responsibilities particularly, including Carer’s Passport, Career Breaks and a Job-Share register
• menopause support for colleagues and managers via our Employee Assistance Programme (EAP) and HR Expert Advice Service and guidance to support colleagues experiencing domestic abuse

Evidence-informed approach with strong accountability and governance

We use quantitative data and insight to inform our approach to equality, diversity and inclusion and to measure progress. We monitor employee experience and outcomes by all equality protected characteristics, including sex, working pattern and carer status to measure and benchmark our progress.

We have a staff network and executive committee level champion for sex and gender and for carers to provide a platform for employee voice, engagement and peer support which feed into work to close the gender pay gap.

Progress is reported to senior boards to provide robust accountability and governance and drive progress.

Communicating our inclusive environment

We use a range of channels and activities, such as outreach campaigns, to communicate HMRC’s expectations, position and progress on equality and inclusion and celebrate our diversity internally and to attract talented people from all backgrounds to join and grow their careers at HMRC.

Learning and development opportunities

HMRC offers a wide range of learning and development opportunities, support, and career pathways that indirectly help close the gender pay gap. Some help colleagues to create an inclusive culture, some build specific skills and communities, for example our ‘Women in Tech’ group supports women into leadership.

During the financial year 2024 to 2025, we:

1. Introduced new guidance and training on preventing and tackling sexual harassment and Upholding our Commitments, which reinforce the behavioural standards expected of all colleagues.
2. Provided additional support on how to monitor and evaluate the impact of inclusion interventions and updated our diversity data tool to make it easier to use, completed an annual review of our equality priorities and success measures and retained improving the representation of women in our most senior roles as a priority.
3. Ran a campaign of senior women sharing their career stories to inspire and support women to progress their careers within HMRC
4. Encouraged the uptake of inclusion learning and development opportunities by embedding it within Business Group People Plans and supported colleagues to implement new Civil Service guidance on equality, diversity and inclusion expenditure and impartiality guidance.
5. Expanded our internal review and governance processes to ensure the value of bonuses for SCS performance was balanced and considerate of the outcomes by gender. It is pleasing to note these changes appear to be having a positive impact, with the 2.1 percentage point reduction in our bonus payment gap.

During the financial year 2025 to 2026 we will continue taking the year-on-year actions outlined above, and:

1. Introduce annual Director-level preventing sexual harassment risk assessment reviews to identify improvement actions.
2. Implement new legislation on menopause in the workplace under the Employment Rights Bill.
3. Work with our sex and gender staff network to better understand any barriers to career progression within HMRC.
4. Further embed the evaluation of our activities for impact on outcomes.

Overview

In 2017, the government introduced legislation that made it a statutory requirement for organisations with 250 or more employees to report annually on their gender pay gap. Government departments are covered by the Equality Act 2010 (Specific Duties and Public Authorities) Regulations 2017, which came into force on 31 March 2017. These regulations underpin the Public Sector Equality Duty and require relevant organisations to publish their gender pay gap by 30 March annually. This includes:

• the mean and median gender pay gaps in hourly pay
• the mean and median gender bonus pay gaps
• the proportion of men and women who received bonuses
• the proportion of men and women full-pay relevant employees in each pay quartile

The gender pay gap is different to ‘equal pay’. Equal pay legislation deals with unlawful pay differences between men and women who do equal work, meaning they carry out the same jobs, similar jobs or work of equal value.

We have not included contractors, who are on HMRC’s payroll and provide a personal service to HMRC. Under the Equality Act 2010 (2017 Regs, Sch 1, Para 2(3), we are not required to include data relating to a relevant employee if:

• the employee is under a contract personally to do work
• the public authority does not have
• it is not reasonably practicable to obtain the data

Pay elements used in the calculation include allowances, whereas voluntary salary sacrifice deductions for childcare vouchers and cycle to work schemes are excluded.

Methodology

HMRC’s employee headcount is 66,947 as of 31 March 2025.

For the purpose of the gender pay report, and as defined by Regulation 2(1) of the Equality Act 2019 (Specific Duties and Public Authorities) Regulations 2017 and the government’s guidance for calculating the gender pay gaps, in this year’s report:

• 61,003 employees have been established to be in scope for calculation to determine the mean and median ordinary pay gaps, meaning in receipt of full pay on 31 March 2025
• 67,794 employees have been established to be in scope for the calculation to determine the gender mean and median bonus gaps, covering the 12-month period between 1 April 2024 and 31 March 2025

Our calculations followed the legislative requirements, and we confirm the data reported is accurate.

Organisation structure and pay

HMRC uses the standard Civil Service grading system ranging from Administrative Assistant (AA) to Grade 6 (G6), plus the Senior Civil Service (SCS).

Since 31 March 2024, HMRC’s workforce has increased by 1,168 – with an increase of 539 women and 629 men.

Women continue to be over-represented in administrative grades, where pay is lower, and women are under-represented in senior grades, where pay is higher.

Table 1: HMRC employee headcount on 31 March 2025 showing relevant employees

Grade (increasing seniority)	Number of men (% of men who work in this grade)	Number of women (% of women who work in this grade)	Total	% Women
AA/AO	7,464 (23.1%)	10,238 (29.5%)	17,702	57.8%
EO	7,235 (22.4%)	7,891 (22.8%)	15,126	52.2%
HEO/SEO	12,332 (38.2%)	11,999(34.6%)	24,331	49.3%
Grade 7/6	4,957(15.4%)	4,311 (12.4%)	9,268	46.5%
SCS	290 (0.9%)	230 (0.7%)	520	44.2%
Total	32,278 (100%)	34,669 (100%)	66,947	51.8%

Delegated grades – AA to Grade 6

As a Civil Service department, HMRC is governed by public sector pay policy, as set out in the Civil Service Pay Remit Guidance for delegated grades AA to Grade 6.

The pay guidance defines the overall financial parameters for Civil Service pay awards each year to ensure that these pay awards are consistent with the government’s overall objectives. HMRC’s settlement date for annual pay awards is 1 June and pay awards for 1 June 2024 have been used for this report.

AA and AO grades each have a single spot rate of pay, which are separate for London and National offices. Each of the remaining 5 grades from EO (Officer) to Grade 6 have a set pay range, which are separate for London and National offices. The pay ranges consist of a minimum and maximum rate of basic pay. There are no target rates, steps, or progression points within the pay ranges.

Movement and progression towards the maximum rate for the pay range is through the annual pay award process.

Dependant on the nature of the work undertaken in certain roles, non-consolidated allowances may also be paid.

HMRC operates ‘Simply Thanks’ electronic vouchers of £25 for appreciation of good work and positive behaviours. HMRC does not operate any other performance or bonus scheme for employees in grades AA to Grade 6.

The structure and value of the pay ranges and pay awards are negotiated with our 2 recognised Trade Unions; the Public and Commercial Services Union (PCS) and Association of Revenue and Customs (ARC), under the Association of First Division (FDA), who have agreed collective bargaining rights to represent HMRC employees.

Senior Civil Service

Pay and grading for the SCS across the Civil Service is governed by the Cabinet Office and managed by HMRC’s Executive Committee.

The structure consists of 3 grades: Deputy Director (SCS1); Director (SCS2); and Director General (SCS3), and each grade has a set pay range with a minimum and maximum rate of basic pay.

The settlement date for annual pay awards is 1 April and pay awards for 1 April 2024 have been used for this report as set for 2024.

Ordinary pay gap data

Mean hourly rates and pay gap percentage

Image showing HMRC’s mean gender pay gap in hourly pay decreased by 0.6 percentage points, from 5.6% in 2024 to 5.0%

Median hourly rates and pay gap percentage

Image showing HMRC’s median gender pay gap decreased 5.5% to 5.0% (a 5.0 percentage point reduction).

In 2025, HMRC’s gender pay gap figures continued to improve and remain below the Civil Service averages. In comparison, the Civil Service reported a mean gender pay gap of 6.9% (down from 7.4%) and a median gap of 6.4% (down from 8.5%). These figures demonstrate HMRC’s continued commitment to pay equity and its stronger performance relative to the wider Civil Service.

The gender pay gaps are based on the snapshot date of 31 March 2025 for Ordinary Pay, therefore, any payments made after 31 March 2025 would be excluded.

Pay gaps are based on the hourly rate of pay rather than reduced take home pay for colleagues who are part-time, which ensures that the pay gaps are not further distorted. This is particularly important as while 22.9% of our workforce are part-time, 36.4% of women were working part-time, compared with 10.3% of men working part-time.

For example, 2 EO (Officer) national colleagues (one full time and the other part-time) with an annual salary of £29,500 on 31 March, will both have the same hourly rate of £15.28. Working part-time does not directly impact on the hourly rates of pay for the gender pay gap however there is a higher representation of part-time women (compared with men) in the AA, AO and EO (Officer) grades which does impact the overall pay gap

Overall, there continues to be a higher proportion of men than women working full time in the senior grades of Grade 7, Grade 6 and SCS, meaning men continue to have higher average earnings as a group, as highlighted in Table 2, which shows the proportion of full-time men and women in each pay quartile.

Table 2: Proportion of men and women by pay quartiles

Quartile	Female (%)	Male (%)
First (lower) quartile	56.9	43.1
Second quartile	51.9	48.1
Third quartile	48.3	51.7
Fourth (upper) quartile	46.6	53.4

Bonus pay gap data

HMRC follows the standard public sector approach to pay and reward, and an agreed fund is reserved for payment of non-consolidated, non-pensionable awards linked to performance.

The gender bonus gaps are based on awards captured for the 12-month period between 1 April 2024 and 31 March 2025 as below:

• Simply Thanks vouchers, which are valued at £25 awarded to colleagues in delegated grades AA to 6
• year-end and In-year performance awards averaged at £2,933 for colleagues in the Senior Civil Service

As published in the Annual Civil Service Employment Survey (ACSES) July 2025 Civil Service Statistics: 2025, HMRC’s mean gender bonus gap decreased this year by 3.8% to 16.6% (from 20.4% in 2024) and the median gender bonus gap remained at 0% as in 2024.

Mean bonus gap

Image shows the mean bonus pay gap percentage differed at £102.79 (male) and £85.72 (female), representing the mean bonus gap of 16.6%.

Median bonus gap

Image shows the median bonus for the workforce was £25 for both male and female, representing no bonus gap, which reflects the monetary value of the Simply Thanks Vouchers.