Corporate report

UK armed forces equal pay audit 2022 to 2023

Published 11 September 2024

Responsible statistician: People Cost-Modelling Head of Branch

Analysis-People-Cost-Modelling@mod.gov.uk

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Key Findings

Gender

• Focusing on gender, the evidence shows there are some differences exceeding 3%^{[footnote 1]} between the average salaries for male and female personnel in the Regular Armed Forces, accounting for rank and pay scale. However, once Time in Rank (TIR) is accounted for, observed notable differentials in the average salaries for male and female personnel decrease in all instances and, in all cases bar one, differences are below the 5% threshold for action.
• The outlying case shows a difference of 9.1% for OR-2s in the Royal Air Force (RAF) on Supplement 3, which drops to 5.2% after accounting for TIR. Upon further breakdown, all individual trades were below the 5%^{[footnote 2]} threshold at this rank so needed no further investigation.

Ethnicity

• For ethnicity, there are pay differentials exceeding 3% for the average salaries of white (including white minority) and ethnic minority (excluding white minorities) personnel when rank and pay scale are considered. Once TIR is accounted for, the observed notable differentials in the average salaries for white (including white minorities) and ethnic minority (excluding white minorities) personnel decrease in all cases and all differences are below the 5% threshold for action.

Introduction

The Equal Pay Audit (EPA) assesses the equality of pay for all Regular Service Personnel and Gurkhas across the three services: the Royal Navy (RN), the Army and the Royal Air Force (RAF). A basis for measuring pay inequalities in the Armed Forces requires a comparison of salaries for staff undertaking similar roles. Therefore, we have compared the pay of personnel in the same service with the same NATO rank on the same pay scale and supplement. It is anticipated that this approach will split the population into groups of people doing broadly equivalent work.

It primarily focuses on the differences in the average salaries based on gender and ethnicity. Further analysis, which the EHRC recommends for any differentials exceeding 3% and action needed for any above 5%, concentrates on the differences present for gender and ethnicity once TIR has been accounted for. This is because personnel can increment pay spines (receiving higher pay) as their TIR increases, so long as they are not already on the top increment for their rank. In this report we refer to any difference above 3% or 5% after TIR has been accounted for as notable.

Analysis produced in this report has some exclusions which are explained below. The population used in this report contains only Regular Service Personnel and Gurkhas who have received main pay and X-Factor as recorded on the JPA system during October 2022. The exclusions applied in the analysis are: a) Non-Regular sub-populations such as Full Time Reserves (FTRS) and Volunteer Reserves are excluded. b) Bespoke pay spines, targeting specific specialist groups, and Other Ranks serving in the single trade allocated to Supplement 4 (Army Air Corps Pilots), have been excluded due to low numbers. c) Allowances and other Recruitment and Retention payments are excluded. d) Personnel for whom no main pay has been recorded on the JPA system as at 1 November 2022 (during October) are excluded. e) Personnel above NATO rank OF-6 have been excluded from gender comparisons due to low numbers of female personnel at these ranks. f) Groups containing 5 or fewer personnel have their headcounts and average salaries suppressed and subsequently no pay differential is calculated. Headcount figures have been rounded to the nearest 10 in Tables with Rank breakdowns (figures ending in 5 have been rounded to the nearest 20 to avoid the systematic bias of always rounding upwards).

Further exclusions have been made specifically for the ethnicity analysis: a) Personnel who have “No Value” or “Declined to Declare” as their ethnicity have been excluded from percentage calculations.

This is the sixth Armed Forces Equal Pay Audit report which has been written by Personnel Statistics and Analysis. The last report was for 2020/21. This edition has been moved forward to 2022/23 to use the most recent complete year of data. The first report was produced using data as at 1 October 2010 and the second report using data as at 1 October 2017. Since the previous report, there have not been any changes to the military pay structure. However, between 2010 and 2017, there were reforms such as the shortening of pay scales for Other Ranks and the replacement of Higher and Lower pay spines with 4 Supplements. Results from this audit can be compared to the previous edition as there are no changes to the structure but because of the large reforms between the first and second audit, we cannot directly compare the results to the first audit. However, the overall conclusions can still be compared.

Definitions

Salary refers to the annual rates of main pay (i.e. Base Pay plus X-Factor) and reflects the amount an individual received in 2022/23 provided they remained a full-time member of the Armed Forces for the entire year.

X-Factor is an additional percentage added to the base salary of Regular Service Personnel (and some Reserve personnel depending on commitment level), reflecting the differences between conditions of service experienced by members of the Armed Forces over a full career and conditions in civilian life.

Salary differential percentages show the percentage difference in salaries of female to males and ethnic minorities to white.

A positive salary differential shows female/ethnic minority (excluding white minorities) personnel receive a lower average salary than their male/white counterparts. A negative salary differential shows female/ethnic minority (excluding white minorities) personnel receive a higher average salary than their male/white (including white minorities) counterparts.

UK Regular Forces include both trained and untrained personnel, including Gurkhas, and exclude Full Time Reserve Service (FTRS) personnel and mobilised reservists.

Ethnic minority (excluding white minorities) is the terminology used in the UK to describe people of non-white descent. White minorities include Gypsy, Roma and Irish Traveller groups.

Time in Rank (TIR) is the amount of time in years the individual has been in a specific NATO rank and captures the difference between the flow date (the date the individual commenced working at their latest rank) and the 1 November 2022.

Pay supplements are a key feature of the current pay structure for those in the Other Ranks. Whilst rank remains the key determinant of pay, each of the single Service trades have been allocated to one of 4 Supplement groups primarily based upon Job Evaluation (JE) evidence. Those in trades allocated to Supplement 4 have the highest JE scores and so receive more pay than those in Supplement 3. Similarly, those paid from Supplement 3 receives more than those in Supplement 2, and those in Supplement 1 are paid the least.

Symbols and conventions

Symbols

Symbol	Description
*	not applicable
[c]	not available, or figures suppressed due to small numbers
0	Zero

Data Quality and Sources

Data on Armed Forces personnel and salaries are obtained from the Joint Personnel Administration (JPA) system, which is updated continuously as a live system.

Section 1 - Analysis on average annual basic salary by gender

1.1 Summary

Women represent 10.3% of the overall UK Regular and Gurkha Armed Forces on the Main Pay Scale. Across the individual services, the proportion of women in the RN and Army are broadly similar with 9.7% and 9.3% respectively, the RAF has the highest proportion of women at 14.7%. There has been a slight increase across all three services since the last publication.

Overall, there is little difference between male and female basic average salary with males paid 0.6% more on average. The RN is the only service which has a pay differential greater than 3% between male and female personnel, with female personnel earning 4.5% less on average. There has been a 0.8 percentage point decrease in this differential since the 20/21 edition of this Audit, where females in the RN were paid 5.3% less on average. The RAF differential has risen by 0.1 percentage points and the Army has increased by 0.8 percentage points.

Gurkhas are in the Army and are all male personnel. They are distributed primarily over OR where they are predominantly OR-2s.

Table 1: UK Regular and Gurkha Personnel and their average salaries by service and gender as at 1 Oct 22

	Headcount	Proportion	Average Basic Salary	Basic Salary Difference
All Service	140,680		£36,604	0.60%
Male	126,150	89.7%	£36,626
Female	14,530	10.3%	£36,413
Royal Navy	31,310		£37,458	4.50%
Male	28,260	90.3%	£37,624
Female	3,050	9.7%	£35,922
Army	78,700		£35,477	0.40%
Male	71,720	91.1%	£35,489
Female	6,980	8.9%	£35,356
Royal Air Force	30,660		£38,625	0.70%
Male	26,160	85.3%	£38,666
Female	4,500	14.7%	£38,387

1.2 Comparison of average salaries

Table 2 shows the pay differentials that are evident in the Officers and Other Ranks (ORs) sub-groups for each service.

It should be noted that this is not an accurate comparison of equal pay since Officers and ORs are split into 7 and 8 NATO-equivalent ranks, respectively, that represent the different levels of seniority and responsibility. The differences in average salary here, reflect the variations present in the distributions for men and women across the Armed Forces without accounting for differences across rank. A more accurate comparison of salaries can be made by looking at individual ranks separately, and for ORs this can be broken down further into the different Supplements.

It is apparent there is a pattern amongst Officers, with notable pay differentials overall and within each service. The consistent positive pay differential implies that across the services male Officers are being paid notably more than female Officers. The RN has the most prominent pay differential for Officers at 9.5%, the Army and RAF have differentials of 5.4% and 4.9%, respectively.

All the figures in Table 2 are broadly similar to those from the last edition, with the exception of Army OFs, where the differential decreased by 1.3 percentage points to 5.4% in favour of males and RN ORs, where the differential decreased by 0.9 percentage points to 5% in favour of males.

For ORs, in the whole Armed Forces the overall pay differential is below the 3% threshold but does exceed 3% in the RAF and RN. Both services show positive notable pay differentials between males and females, consistent with male ORs being paid more than female counterparts.

Table 2: UK Regular and Gurkha personnel on the main pay scale average salaries by subgroup, gender and Service as at 1 Oct 22

Officers	Headcount	Proportion	Average Basic Salary	Basic Salary Difference
All Service	23,270		£57,578	6.30%
Male	20,250	87.0%	£58,052
Female	3,030	13.0%	£54,407
Royal Navy	5,790		£58,410	9.50%
Male	5,140	88.8%	£59,040
Female	650	11.2%	£53,418
Army	10,720		£57,550	5.40%
Male	9,570	89.2%	£57,885
Female	1,150	10.8%	£54,773
Royal Air Force	6,760		£56,911	4.90%
Male	5,540	81.9%	£57,424
Female	1,220	18.1%	£54,587

Other Ranks	Headcount	Proportion	Average Basic Salary	Basic Salary Difference
All Service	116,290		£32,335	2.30%
Male	104,820	90.1%	£32,409
Female	11,470	9.9%	£31,662
Royal Navy	25,380		£32,674	5.00%
Male	22,980	90.5%	£32,831
Female	2,400	9.5%	£31,176
Army	67,080		£31,819	1.10%
Male	61,280	91.3%	£31,849
Female	5,800	8.7%	£31,496
Royal Air Force	23,830		£33,429	3.80%
Male	20,560	86.3%	£33,606
Female	3,260	13.7%	£32,314

1.3 Officers

Table 3: UK Regular and Gurkha Officers on the main pay scale average salaries by gender, rank and Service as at 1 Oct 22

Rank	Gender	Royal Navy Headcount	Royal Navy Ave. Salary	RN % diff F/M	Army Headcount	Army Ave. Salary	Army % diff F/M	RAF Headcount	RAF Ave. Salary	RAF % diff F/M
Officers		5,790	£58,410		10,720	£57,550		6,760	£56,911
OF-6	Male	90	£114,592	*	140	£115,238	0.20%	70	£114,894	0.10%
	Female	[c]	[c]		10	£114,962		10	£114,809
OF-5	Male	240	£97,533	1.30%	400	£98,760	1.10%	250	£98,983	1.50%
	Female	20	£96,268		40	£97,694		40	£97,537
OF-4	Male	860	£83,762	1.80%	1,380	£83,800	0.70%	810	£84,642	1.30%
	Female	70	£82,216		110	£83,231		150	£83,584
OF-3	Male	1,400	£62,034	2.30%	3,340	£62,164	0.00%	1,200	£61,158	0.50%
	Female	190	£60,637		400	£62,173		310	£60,828
OF-2	Male	1,660	£47,870	1.10%	2,280	£46,655	-0.50%	2,380	£47,769	1.10%
	Female	200	£47,355		320	£46,883		460	£47,261
OF-1	Male	680	£36,751	0.10%	1,490	£35,721	-0.20%	750	£36,530	3.30%
	Female	120	£36,699		190	£35,791		240	£35,325
OF(D)	Male	200	£28,919	0.20%	540	£29,069	0.00%	80	£28,947	0.30%
	Female	40	£28,861		80	£29,073		20	£28,861

1.3ai Gender pay differentials at OF-1

From Table 3, it can be seen there is only one pay differentials above 3% seen across the services and ranks. There is a low number of females at OF-6 level in the RN which means no inferences can be made on the presence of a pay differential. An identical approach has been adopted for ranks where personnel numbers are less than 5 throughout this report. The presence of an actual pay differential in the OF-1s RAF suggests that male and female personnel receive different average salaries at the same rank.

Consistent with previous audits, where there is a difference exceeding 3%, this audit will control for the effect of time in a current job/rank on average salaries. Time in current rank is not readily available on the JPA system, therefore making statistical adjustments for the whole population is not practical. Instead, an estimate has been applied in further analysis where notable differentials are observed.

To take the observed differences of TIR into account when making gender comparisons in pay, Table 4 presents adjusted average basic salary figures by gender, and the resultant percentage gender difference in average basic salary. These adjusted averages were derived using the estimated marginal means from ANCOVA analysis to remove the effect which an individual’s TIR has on their basic salary, and therefore provide a more representative comparison of the average basic salary of males and females at the same rank.

1.3aii Adjusting for TIR in the RAF OF-1

Table 4: Comparison of average salaries of UK Regular OFs (OF-1) in the RAF before/after accounting for TIR as at 1 Oct 22

Rank	Gender	Headcount	Ave. Salary	% diff F/M	Adjusted Ave. Salary	% diff F/M
OF-1	Male	750	£36,530	3.30%	£36,489	2.80%
	Female	240	£35,325		£35,455

Accounting for TIR, the pay differential between females and males for OF-1s in the RAF drops from 3.3% to 2.8%, below the 3% threshold. This is consistent with equality of pay once TIR has been accounted for.

A decrease in the pay differential after adjusting for TIR implies that males have a higher TIR on average than females at this rank.

1.4 Other Ranks (ORs) – Supplements

1.4a ORs- Supplement 1

Table 5: UK Regular and Gurkha Other Ranks (Supplement 1) average salaries by gender, rank and Service as at 1 Oct 22

Rank	Gender	Royal Navy Headcount	Royal Navy Ave. Salary	RN % diff F/M	Army Headcount	Army Ave. Salary	Army % diff F/M	RAF Headcount	RAF Ave. Salary	RAF % diff F/M
Other Ranks		450	£37,407		12,680	£32,451		6,300	£32,078
OR-9	Male	10	£54,258	*	220	£53,219	-0.40%	180	£53,770	0.60%
	Female	0	£0		60	£53,440		60	£53,426
OR-8	Male	[c]	[c]	*	600	£46,771	-0.20%	0	£0
	Female	[c]	[c]		160	£46,844		0	£0
OR-7	Male	50	£43,949	-1.20%	1,000	£42,797	0.00%	290	£43,741	1.10%
	Female	10	£44,473		180	£42,792		110	£43,250
OR-6	Male	110	£39,597	-1.80%	1,380	£38,834	-0.80%	760	£39,655	-0.30%
	Female	20	£40,320		240	£39,131		250	£39,784
OR-4	Male	160	£34,400	-0.20%	2,080	£34,513	0.10%	1,360	£34,591	0.10%
	Female	50	£34,456		370	£34,472		410	£34,555
OR-3	Male	0	£0		1,810	£30,464	0.20%	0	£0
	Female	0	£0		300	£30,394		0	£0
OR-2	Male	20	£22,417	4.40%	3,550	£23,139	2.00%	2,100	£25,200	2.80%
	Female	10	£21,425		730	£22,675		570	£24,486
OR-1	Male	0	£0		0	£0		160	£18,185	-1.10%
	Female	0	£0		0	£0		50	£18,389

1.4ai Gender pay differentials at OR-2

Table 5 shows the pay differentials in the ORs for those on Supplement 1. The only notable pay differential is within Navy OR-2s, with a 4.4% difference.

1.4aii Adjusting for TIR in the Navy OR-2 - Supplement 1

Table 6: Comparison of average salaries of UK Regular ORs (OR-2) in the Navy before/after accounting for TIR as at 1 Oct 22

Rank	Gender	Headcount	Ave. Salary	% diff F/M	Adjusted Ave. Salary	% diff F/M
OR-2	Male	750	£22,417	4.40%	£25,889	0.00%
	Female	240	£21,425		£25,889

When TIR is accounted for, the absolute pay differential between females and male decreased from 4.4% to 0.0%. This demonstrates equality of pay once TIR has been accounted for.

1.4b ORs- Supplement 2

Table 7: UK Regular and Gurkha ORs (Supplement 2) average salaries by gender, rank and Service as at 1 Oct 22

Rank	Gender	Royal Navy Headcount	Royal Navy Ave. Salary	RN % diff F/M	Army Headcount	Army Ave. Salary	Army % diff F/M	RAF Headcount	RAF Ave. Salary	RAF % diff F/M
Other Ranks		12,090	£30,936		41,270	£30,847		7,540	£32,517
OR-9	Male	200	£53,956	0.20%	370	£53,063	-0.10%	170	£53,556	-0.70%
	Female	10	£53,875		20	£53,119		20	£53,951
OR-8	Male	220	£49,209	0.70%	1,460	£48,787	0.30%	0	£0
	Female	10	£48,844		60	£48,655		0	£0
OR-7	Male	810	£45,660	0.30%	2,170	£44,575	0.10%	450	£45,783	1.20%
	Female	70	£45,512		80	£44,522		60	£45,212
OR-6	Male	1,330	£40,861	-0.60%	3,840	£40,435	0.50%	980	£41,253	1.30%
	Female	180	£41,105		170	£40,226		140	£40,719
OR-4	Male	2,170	£35,400	0.10%	7,120	£35,478	0.30%	1,720	£35,905	1.90%
	Female	340	£35,381		350	£35,369		230	£35,215
OR-3	Male	610	£30,749	-2.60%	7,240	£31,172	1.00%	160	£31,176	*
	Female	30	£31,558		460	£30,849		0	£0
OR-2	Male	5,350	£23,048	-1.40%	16,870	£22,946	2.70%	2,620	£26,307	5.70%
	Female	760	£23,362		1,060	£22,317		390	£24,802
OR-1	Male	0	£0		0	£0		520	£20,171	1.70%
	Female	0	£0		0	£0		80	£19,824

1.4bi Gender pay differentials at OR-2 Supplement 2

Table 7 shows the pay differential in the ORs for those on Supplement 2. The only notable pay differential present in the above table are OR-2s in the RAF. The presence of a material pay differential in the RAF is suggestive of male and female personnel receiving different average salaries at the same rank.

1.4bii Adjusting for TIR in the RAF OR-2 - Supplement 2

Table 8: Comparison of average salaries of UK Regular OR-2s in the RAF before/after accounting for TIR as at 1 Oct 22

Rank	Gender	Headcount	Ave. Salary	% diff F/M	Adjusted Ave. Salary	% diff F/M
OR-2	Male	2,620	£26,307	5.70%	£26,206	2.80%
	Female	390	£24,802		£25,479

When TIR is accounted for, the pay differential between females and males for OR-2s in the RAF drops from 5.7% to 2.8%, below the 3% threshold. This is consistent with equality of pay once TIR has been accounted for.

1.4c Other Ranks (ORs)- Supplement 3

Table 9: UK Regular and Gurkha ORs (Supplement 3) average salaries by gender, rank and Service as at 1 Oct 22

Rank	Gender	Royal Navy Headcount	Royal Navy Ave. Salary	RN % diff F/M	Army Headcount	Army Ave. Salary	Army % diff F/M	RAF Headcount	RAF Ave. Salary	RAF % diff F/M
Other Ranks		12,840	£34,144		13,120	£34,263		9,990	£34,968
OR-9	Male	450	£54,202	1.00%	340	£53,041	0.10%	260	£53,429	-0.10%
	Female	10	£53,679		40	£52,991		30	£53,463
OR-8	Male	200	£51,409	0.30%	930	£50,609	-0.10%	0	£0
	Female	10	£51,253		80	£50,683		0	£0
OR-7	Male	1,440	£48,280	1.30%	1,240	£46,289	-0.20%	1,090	£47,381	1.10%
	Female	90	£47,654		130	£46,398		90	£46,872
OR-6	Male	1,970	£42,270	1.00%	1,380	£41,722	0.80%	1,890	£42,290	1.00%
	Female	140	£41,845		190	£41,389		200	£41,870
OR-4	Male	3,010	£36,104	-0.10%	1,850	£36,194	0.20%	2,000	£36,309	0.60%
	Female	230	£36,158		280	£36,122		160	£36,104
OR-3	Male	80	£31,393	*	2,310	£31,234	0.50%	0	£0
	Female	0	£0		370	£31,090		0	£0
OR-2	Male	4,770	£23,086	2.10%	3,520	£22,441	2.90%	2,950	£28,269	9.10%
	Female	430	£22,611		480	£21,791		310	£25,695
OR-1	Male	0	£0		0	£0		920	£20,048	2.90%
	Female	0	£0		0	£0		100	£19,468

1.4ci Gender pay differentials at OR-2

In Table 9, there is a pay differential between males and females exceeding 3% for the RAF at OR-2 suggestive of male and female personnel receiving different average salaries at the same rank.

1.4cii Adjusting for TIR in the RAF OR-2 – Supplement 3

Table 10: Comparison of average salaries of UK Regular ORs (OR-2) in the RAF before/after accounting for TIR as at 1 Oct 22

Rank	Gender	Headcount	Ave. Salary	% diff F/M	Adjusted Ave. Salary	% diff F/M
OR-2	Male	2,950	£28,269	9.10%	£28,161	5.20%
	Female	310	£25,695		£26,702

When TIR is accounted for, the pay differential remains notable with a decrease between males and females from 9.1% to 5.2%, which is still above the 5% threshold for action. This does not show equality of pay once TIR has been accounted for within the RAF OR-2 Supplement 3.

1.4ciii Further analysis on RAF OR-2 – Supplement 3

Adjusting for TIR showed a differential higher than the 5% threshold for action. However, upon further breakdown by trade, it has been found that all unadjusted salary differentials are under 5% for each individual trade. This includes the trade found in the last report to be above 5% at 6.4% which we correctly judged then to be a temporary anomaly reflecting a prior abnormal intake.

Section 2 – Analysis on average annual basic salary by ethnicity

2.1 Summary

Ethnic minorities (excluding white minorities) comprise 12.7% of the UK Regular and Gurkha Armed Forces personnel on the Main Pay Scale which is a 1.1 percentage point increase from the last publication. The RN and RAF have seen a rise in proportions of ethnic minority (excluding white minorities) personnel with an increase of 0.3 percentage point and 0.8 percentage points respectively, the Army has the largest proportion of ethnic minority (excluding white minorities) personnel at 19.1% which is a 1.4 percentage point increase from the previous publication.

Across all services, the pay differential between white (including white minorities) and ethnic minority (excluding white minorities) personnel is 15.3% which exceeds the 3% threshold. This is an 0.9 percentage point decrease from the last publication. These pay differentials are present in all the individual services with the RN having the largest difference of 18.1%. A positive pay differential indicates that on average white (including white minorities) personnel receive a higher salary than ethnic minority (excluding white minorities) personnel, before taking account of differences between ranks.

Gurkhas are in Army and are all made up of ethnic minority (excluding white minorities) personnel and are predominantly distributed at OR-2.

Table 11: UK Regular and Gurkha Personnel and their average salaries by service and ethnicity as at 1 Oct 22

	Headcount	Proportion	Average Basic Salary	Basic Salary Difference*
All service	140,680		£36,604
White	122,150	87.30%	£37,274	15.30%
Ethnic Minority	17,700	12.70%	£31,587
Unknown	820
Royal Navy	31,310		£37,458
White	29,480	94.90%	£37,807	15.80%
Ethnic Minority	1,590	5.10%	£31,816
Unknown	240
Army	78,700		£35,477
White	63,570	80.90%	£36,395	13.30%
Ethnic Minority	15,010	19.10%	£31,557
Unknown	120
Royal Air Force	30,660		£38,625
White	29,100	96.30%	£38,654	18.10%
Ethnic Minority	1,110	3.70%	£31,662
Unknown	460

*Unknown ethnicity is not included in the calculation

2.2 Comparison of average salaries

From Table 12 below, we can look at the pay differentials between white (including white minorities) and ethnic minority (excluding white minorities) personnel for Officers and ORs subgroups for each service.

There are notable pay differentials for white (including white minorities) and ethnic minority (excluding white minorities) Officers which exceeds the 3% threshold. A positive pay differential implies white (including white minorities) Officers and ORs receive a higher average salary than ethnic minority (excluding white minorities) Officers and ORs. After breaking down to individual services, the Army ORs is the area with the smallest pay differential at 3.4%. The Officer figures have all risen compared to the previous edition while all OR figures have fallen, apart from RAF ORs which has increased by 2.6 percent point. The largest increase is found in Royal Navy Officers which has increased by 4.4 percentage points.

Table 12: UK Regular and Gurkha personnel average salaries by subgroup, ethnicity and service as at 1 Oct 22

	Headcount	Proportion	Average Basic Salary	Basic Salary Difference*
Officers	23,270		£57,578
White	22,370	97.00%	£57,619	9.90%
Ethnic Minority	680	3.00%	£51,905
Unknown	220
Royal Navy	5,790		£58,410
White	5,640	97.90%	£58,531	10.60%
Ethnic Minority	120	2.10%	£52,345
Unknown	20
Army	10,720		£57,550
White	10,320	96.50%	£57,652	6.20%
Ethnic Minority	370	3.50%	£54,063
Unknown	30
Royal Air Force	6,760		£56,911
White	6,400	97.10%	£56,764	16.40%
Ethnic Minority	190	2.90%	£47,474
Unknown	170

*Unknown ethnicity is not included in the calculation

	Headcount	Proportion	Average Basic Salary	Basic Salary Difference*
Other Ranks	116,290		£32,335
White	98,740	85.30%	£32,589	5.70%
Ethnic Minority	16,950	14.70%	£30,739
Unknown	600
Royal Navy	25,380		£32,674
White	23,700	94.20%	£32,869	8.50%
Ethnic Minority	1,460	5.80%	£30,059
Unknown	220
Army	67,080		£31,819
White	52,410	78.20%	£32,060	3.40%
Ethnic Minority	14,580	21.80%	£30,960
Unknown	90
Royal Air Force	23,830		£33,429
White	22,630	96.10%	£33,523	15.60%
Ethnic Minority	910	3.90%	£28,287
Unknown	290

*Unknown ethnicity is not included in the calculation

2.3 Officers

Table 13: UK Regular and Gurkha Officers average salaries by ethnicity, rank and service as at 1 Oct 22

Rank	Gender	Royal Navy Headcount	Royal Navy Ave. Salary	RN % diff Ethnic minority/White	Army Headcount	Army Ave. Salary	Army % diff Ethnic minority/White	RAF Headcount	RAF Ave. Salary	RAF % diff Ethnic minority/White
Officer		5790	£58,410		10,720	£57,550		6760	£56,911
OF-6	White	90	£114,567	*	140	£115,236	*	70	£114,957	*
	Ethnic Minority	[c]	[c]		[c]	[c]		[c]	[c]
	Unknown	0			[c]			[c]
OF-5	White	260	£97,420	*	420	£98,668	-0.90%	270	£98,787	*
	Ethnic Minority	[c]	[c]		10	£99,594		[c]	[c]
	Unknown	[c]			[c]			20
OF-4	White	920	£83,668	0.50%	1,450	£83,792	2.50%	900	£84,451	-1.40%
	Ethnic Minority	10	£83,210		30	£81,666		10	£85,663
	Unknown	[c]			10			50
OF-3	White	1560	£61,865	0.20%	3,600	£62,136	-1.30%	1430	£60,964	-1.30%
	Ethnic Minority	20	£61,754		140	£62,926		20	£61,750
	Unknown	10			[c]			60
OF-2	White	1800	£47,800	-0.20%	2,520	£46,676	-0.40%	2710	£47,744	4.50%
	Ethnic Minority	50	£47,877		90	£46,841		100	£45,601
	Unknown	[c]			[c]			20
OF-1	White	780	£36,790	5.00%	1,620	£35,726	-0.30%	940	£36,292	3.30%
	Ethnic Minority	20	£34,968		60	£35,830		50	£35,088
	Unknown	[c]			0			[c]
OF(D)	White	230	£28,912	0.20%	570	£29,059	-0.80%	100	£28,933	*
	Ethnic Minority	10	£28,861		40	£29,288		[c]	[c]
	Unknown	[c]			10			[c]

2.3ai Ethnicity pay differentials at OF-2

A negative pay differential implies that ethnic minority (excluding white minorities) personnel are paid more than white personnel. As seen in Table 13, there are notable pay differentials present for OF-2s in the RAF (4.5%), OF-1s in the Royal Navy (5%) and OF-1s in the RAF (3.3%).

2.3aii Adjusting for TIR in the RAF OF-2

Table 14: Comparison of average salaries of UK Regular Officers (OF-2) in the RAF before/after accounting for TIR as at 1 Oct 22

Rank	Ethnicity	Headcount	Ave. Salary	% diff Ethnic minority/White	Adjusted Ave. Salary	% diff Ethnic minority/White
OF-2	White	2,710	£47,744	4.50%	£47,703	2.20%
	Ethnic Minority	100	£45,601		£46,657

When TIR is accounted for, the absolute pay differential between ethnic minority (excluding white minorities) and white (including white minorities) OF-2s in the RAF reduces from 4.5% to 2.2%, which is below the 3% threshold. This shows equality of pay once TIR has been accounted for.

2.3aiii Adjusting for TIR in the RN OF-1

Table 15: Comparison of average salaries of UK Regular Officers (OF-1) in the RN before/after accounting for TIR as at 1 Oct 22

Rank	Ethnicity	Headcount	Ave. Salary	% diff Ethnic minority/White	Adjusted Ave. Salary	% diff Ethnic minority/White
OF-1	White	780	£36,790	5.00%	£36,784	4.30%
	Ethnic Minority	20	£34,968		£35,197

When TIR is accounted for, the absolute pay differential between ethnic minority (excluding white minorities) and white (including white minorities) OF-1s in the RN reduces from 5.0% to 4.3%, which is still above the 3% threshold. This does not show equality of pay once TIR has been accounted for.

2.3aiv Adjusting for TIR in the RAF OF-1

Table 16: Comparison of average salaries of UK Regular Officers (OF-1) in the RAF before/after accounting for TIR as at 1 Oct 22

Rank	Ethnicity	Headcount	Ave. Salary	% diff Ethnic minority/White	Adjusted Ave. Salary	% diff Ethnic minority/White
OF-1	White	940	£36,292	3.30%	£36,285	2.90%
	Ethnic Minority	50	£35,088		£35,225

When TIR is accounted for, the absolute pay differential between ethnic minority (excluding white minorities) and white (including white minorities) OF-1s in the RAF reduces from 3.3% to 2.9%, below the 3% threshold. This shows equality of pay once TIR has been accounted for.

2.4 Other Ranks – Supplements

2.4a ORs- Supplement 1

Table 17: UK Regular and Gurkha ORs (Supplement 1) average salaries by ethnicity, rank and service as at 1 Oct 22

Rank	Gender	Royal Navy Headcount	Royal Navy Ave. Salary	RN % diff Ethnic minority/White	Army Headcount	Army Ave. Salary	Army % diff Ethnic minority/White	RAF Headcount	RAF Ave. Salary	RAF % diff Ethnic minority/White
Other Ranks		450	£37,407		12,680	£32,451		6,300	£32,078
OR-9	White	10	£54,258	*	230	£53,307	0.50%	220	£53,692	0.40%
	Ethnic Minority	0	£0		40	£53,032		10	£53,476
	Unknown	0			0			10
OR-8	White	10	£46,583	*	580	£46,862	0.70%	0	£0
	Ethnic Minority	0	£0		180	£46,543		0	£0
	Unknown	0			0			0
OR-7	White	60	£44,029	*	780	£42,787	-0.10%	380	£43,585	-0.30%
	Ethnic Minority	[c]	[c]		400	£42,817		10	£43,728
	Unknown	0			[c]			10
OR-6	White	120	£39,659	-2.00%	960	£38,846	-0.20%	970	£39,670	0.40%
	Ethnic Minority	10	£40,456		670	£38,924		20	£39,522
	Unknown	0			[c]			20
OR-4	White	190	£34,380	-1.10%	1,400	£34,534	0.20%	1,710	£34,577	-0.10%
	Ethnic Minority	20	£34,774		1,040	£34,464		50	£34,607
	Unknown	[c]			[c]			10
OR-3	White	0	£0		1,170	£30,504	0.30%	0	£0
	Ethnic Minority	0	£0		930	£30,402		0	£0
	Unknown	0			10			0
OR-2	White	20	£22,139	*	2,540	£22,851	-2.20%	2,420	£25,157	4.90%
	Ethnic Minority	0	£0		1,730	£23,364		240	£23,917
	Unknown	0			10			10
OR-1	White	0	£0		0	£0		180	£18,327	2.70%
	Ethnic Minority	0	£0		0	£0		30	£17,826
	Unknown	0			0			[c]

2.4ai Ethnicity pay differentials at OR-2

In the above table there is one notable pay differentials exceeding the 3% threshold which is the OR-2s in the RAF, with a difference of 4.9%. This is indicative of white (including white minorities) personnel receiving a higher average salary than ethnic minority (excluding white minorities) personnel.

2.4aii Adjusting for TIR in the RAF OR-2 – Supplement 1

Table 18: Comparison of average salaries of UK Regular ORs (OR-2) in the RAF before/after accounting for TIR as at 1 Oct 22

Rank	Ethnicity	Headcount	Ave. Salary	% diff Ethnic minority/White	Adjusted Ave. Salary	% diff Ethnic minority/White
OR-2	White	2,420	£25,157	4.90%	£25,063	0.80%
	Ethnic Minority	240	£23,917		£24,862

When TIR is accounted for, the absolute pay differential between ethnic minority (excluding white minorities) and white (including white minorities) OR-2s in the RN reduces from 4.9% to 0.8%, below the 3% threshold. This shows equality of pay once TIR has been accounted for.

2.4b ORs- Supplement 2

Table 19: UK Regular and Gurkha ORs (Supplement 2) average salaries by ethnicity, rank and service as at 1 Oct 22

Rank	Gender	Royal Navy Headcount	Royal Navy Ave. Salary	RN % diff Ethnic minority/White	Army Headcount	Army Ave. Salary	Army % diff Ethnic minority/White	RAF Headcount	RAF Ave. Salary	RAF % diff Ethnic minority/White
Other Ranks		12,090	£30,936		41,270	£30,847		7,540	£32,517
OR-9	White	200	£53,968	*	370	£53,072	0.20%	180	£53,576	*
	Ethnic Minority	[c]	[c]		20	£52,981		[c]
	Unknown	[c]			[c]			10
OR-8	White	220	£49,188	*	1,350	£48,813	0.60%	0	£0
	Ethnic Minority	[c]	[c]		170	£48,529		0	£0
	Unknown	[c]			[c]			0
OR-7	White	850	£45,666	0.80%	1,890	£44,605	0.40%	480	£45,695	*
	Ethnic Minority	20	£45,320		360	£44,407		[c]	[c]
	Unknown	10			[c]			20
OR-6	White	1,400	£40,890	-0.10%	3,280	£40,463	0.50%	1,070	£41,151	0.60%
	Ethnic Minority	90	£40,911		730	£40,264		20	£40,912
	Unknown	20			[c]			40
OR-4	White	2,280	£35,370	-0.80%	5,990	£35,455	-0.30%	1,890	£35,821	0.40%
	Ethnic Minority	220	£35,639		1,470	£35,551		40	£35,691
	Unknown	20			10			10
OR-3	White	610	£30,792	0.10%	6,340	£31,117	-0.70%	150	£31,149	-2.30%
	Ethnic Minority	20	£30,756		1,350	£31,325		10	£31,869
	Unknown	[c]			10			0
OR-2	White	5,470	£23,098	0.20%	13,980	£22,849	-1.20%	2,870	£26,144	3.10%
	Ethnic Minority	570	£23,044		3,930	£23,118		140	£25,332
	Unknown	70			20			[c]
OR-1	White	0	£0		0	£0		560	£20,117	-1.40%
	Ethnic Minority	0	£0		0	£0		30	£20,390
	Unknown	0			0			[c]

2.4bi Ethnicity pay differentials at OR-2

From table 19, there are slight pay differentials seen across the services and ranks, with one exceeding the 3% threshold which is the OR-2s in RAF at 3.1 percentage difference.

2.4bii Adjusting for TIR in the RAF OR-2 – Supplement 2

Table 20: Comparison of average salaries of UK Regular ORs (OR-2) in the RAF before/after accounting for TIR as at 1 Oct 22

Rank	Ethnicity	Headcount	Ave. Salary	% diff Ethnic minority/White	Adjusted Ave. Salary	% diff Ethnic minority/White
OR-2	White	2,870	£26,144	3.10%	£26,123	1.40%
	Ethnic Minority	140	£25,332		£25,762

When TIR is accounted for, the absolute pay differential between ethnic minority (excluding white minorities) and white (including white minorities) OR-2s in the RAF reduces from 3.1% to 1.4%, which is below the 3% threshold. This shows equality of pay once TIR has been accounted for.

2.4c ORs- Supplement 3

Table 21: UK Regular and Gurkha ORs (Supplement 3) average salaries by ethnicity, rank and Service as at 1 Oct 22

Rank	Gender	Royal Navy Headcount	Royal Navy Ave. Salary	RN % diff Ethnic minority/White	Army Headcount	Army Ave. Salary	Army % diff Ethnic minority/White	RAF Headcount	RAF Ave. Salary	RAF % diff Ethnic minority/White
Other Ranks		12,840	£34,144		13,120	£34,263		9,990	£34,968
OR-9	White	450	£54,194	*	350	£53,046	0.30%	270	£53,437	*
	Ethnic Minority	[c]	[c]		20	£52,885		[c]	[c]
	Unknown	0			0			20
OR-8	White	210	£51,404	0.20%	900	£50,618	0.10%	0	£0
	Ethnic Minority	10	£51,314		100	£50,570		0	£0
	Unknown	0			[c]			0
OR-7	White	1,470	£48,263	1.10%	1,170	£46,302	0.10%	1,110	£47,331	-0.10%
	Ethnic Minority	50	£47,733		200	£46,271		20	£47,363
	Unknown	[c]			[c]			50
OR-6	White	2,030	£42,241	-0.20%	1,400	£41,663	-0.40%	2,000	£42,226	0.90%
	Ethnic Minority	80	£42,325		160	£41,842		30	£41,850
	Unknown	10			[c]			60
OR-4	White	3,110	£36,116	0.50%	1,890	£36,176	-0.20%	2,100	£36,295	1.90%
	Ethnic Minority	120	£35,938		240	£36,233		40	£35,623
	Unknown	10			[c]			20
OR-3	White	80	£31,391	*	2,400	£31,176	-1.20%	0	£0
	Ethnic Minority	[c]	[c]		270	£31,555		0	£0
	Unknown	0			[c]			0
OR-2	White	4,900	£23,064	0.70%	3,440	£22,192	-5.50%	3,110	£28,063	3.80%
	Ethnic Minority	240	£22,907		550	£23,407		140	£27,007
	Unknown	70			10			10
OR-1	White	0	£0		0	£0		940	£20,005	0.80%
	Ethnic Minority	0	£0		0	£0		70	£19,854
	Unknown	0			0			10

2.4ci Ethnicity pay differentials at OR-2

In table 21 there are notable pay differentials exceeding the 3% threshold in OR-2s in the RAF, with a difference of 3.8%, and OR-2s in the Army with a difference of -5.5%.

2.4cii Adjusting for TIR in the RAF OR-2 – Supplement 3

Table 22: Comparison of average salaries of UK Regular ORs (OR-2) in the RAF before/after accounting for TIR as at 1 Oct 22

Rank	Ethnicity	Headcount	Ave. Salary	% diff Ethnic minority/White	Adjusted Ave. Salary	% diff Ethnic minority/White
OR-2	White	3,110	£28,063	3.80%	£28,030	1.10%
	Ethnic Minority	140	£27,007		£27,721

When TIR is accounted for, the absolute pay differential between ethnic minority (excluding white minorities) and white (including white minorities) OR-2s in the RAF reduces from 3.8% to 1.1%, below the 3% threshold. This shows equality of pay once TIR has been accounted for.

2.4ciii Adjusting for TIR in the Army OR-2 – Supplement 3

Table 23: Comparison of average salaries of UK Regular ORs (OR-2) in the Army before/after accounting for TIR as at 1 Oct 22

Rank	Ethnicity	Headcount	Ave. Salary	% diff Ethnic minority/White	Adjusted Ave. Salary	% diff Ethnic minority/White
OR-2	White	3,440	£22,192	-5.50%	£22,296	-2.10%
	Ethnic Minority	550	£23,407		£22,761

When TIR is accounted for, the absolute pay differential between ethnic minority (excluding white minorities) and white (including white minorities) OR-2s in the Army reduces from -5.5% to -2.1%, below the 3% threshold. This shows equality of pay once TIR has been accounted for.

Section 3 – Conclusion

A basis for measuring pay inequalities in the Armed Forces requires a comparison of salaries for staff undertaking similar roles. Therefore, the pay of personnel in the same service, with the same NATO rank, on the same pay scale was compared, under the assumption that this approach splits the population into groups of people doing broadly equivalent work.

Initial analysis that accounted for service, rank and pay scale shows that for the most part, there are only small (less than 3%) differences in average pay within these groupings. However, some groups have pay differentials exceeding the 3% threshold for male and female personnel. The differences were largely observed in the lower ranks, with the largest differential being 9.1% for the RAF at OR-2 within Supplement 3. However, this drops to 5.2% after accounting for TIR. Further analysis shows that the unadjusted salary differentials for the individual trades on that rank are below the 5% threshold.

Personnel can increment in pay spines as their time in rank increases so long as they are not already at the top increment of the spine for their rank. Although the number of spine points have been shortened as result of pay reforms, TIR does still impact the average salary. The effect of TIR on the average salaries of personnel was investigated in further analysis when notable differentials were observed. Overall, the amount of time spent in rank was found to be a contributing factor to pay differentials and once adjusted for lead to a decrease in pay differentials.

After adjustments for TIR, three pay differentials are below the 3% threshold and all differentials bar one are below 5%, although further investigation suggests that this is not the case at the level of individual trades. Only one differential above 5% is present after TIR adjustment alone, the OR-2 on Supplement 3 in the RAF, where female personnel receive an annual salary lower than their male counterparts.

Similarly, analysis that considered service, rank and pay scale found few pay differentials deemed notable between white (including white minorities) and ethnic minority (excluding white minorities) personnel in the Armed Forces. Consistent with observations for gender, these differentials were found at the lower ranks and the largest difference was 5.0% for the RN OF-1s. After the adjustment for TIR, this differential dropped to 4.3%, still above the 3% threshold, in favour of White (including white minorities) personnel.

This analysis suggests that once service, rank, and TIR are accounted for there is equality of basic pay for Regulars on the main pay scale irrespective of ethnicity or gender in all but two cases. In addition, for these two cases it can be shown through further analysis that the underlying differential are also below the 5% threshold where, based on guidance from the Equality and Human Rights Commission (ECHR), action to close the differential is not needed.

Appendices

1. Data Quality issues

Time in Rank (TIR)

A person’s TIR is calculated as the difference between the situation date and their latest intake date or their substantive promotion date, depending on how the person entered their current rank. If the person does not have an intake date or has not been promoted since 2007, then their length of service has been taken as the difference between their entry date and the situation date of publication. These fields are taken from JPA, which is known to have issues such as administrative errors.

2. Armed Forces Salary structure

Military salary consists of 3 main components: Base pay (Core Pay plus Trade Supplement Pay (for ORs only)), X-Factor and Bespoke pay spines. Base pay is the standard salary military personnel receive and is paid in accordance with the salary paid to civilians doing jobs with a similar job evaluated weight. The X-Factor is an additional percentage added to the base salary of regular Service Personnel (and some Reserve personnel depending on commitment level), reflecting the differences between conditions of service experienced by members of the Armed Forces over a full career and conditions in civilian life.^{[footnote 3]}

Armed Forces personnel can be paid differently depending on their trade or profession. Most personnel are on the Main pay scale. Officers have a single Main pay scale but ORs are split into different supplements on the Main pay scale according to their trade and rank.

Accounting for professional skills and career structures, there are Armed Forces personnel on bespoke pay spines. Whilst they are considered, at various levels, equivalent to their main scale counterparts, with equivalent ranks, they are paid differently in recognition of their specialism.

3. Methodology

Guidance from the Equality and Human Rights Commission (EHRC) suggests an audit should make comparisons on the pay of workers undertaking the same type of work. The EHRC advocates when a pay differential related to gender is less than 3%, no action is necessary.^{[footnote 4]} Where the difference is greater than 3%, there is a need to undertake further analysis and for gender pay differentials exceeding 5%, action is needed to address the issue and close the differential. In this audit, pay differentials which exceed 3% when looking at individual ranks within pay scales will involve further analysis to provide explanations. These will include factors such as TIR and pay supplements within their rank.

A basis for measuring pay inequalities in the Armed Forces requires a comparison of salaries for staff undertaking similar roles. Therefore, we compare the pay of personnel in the same service, with the same NATO rank and on the same pay scale. It is anticipated this approach will split the population into groups of people doing broadly equivalent work.

This audit focuses on Officers and ORs on the Main pay scale. FTRS personnel are excluded due to different levels of X-Factor applied to their base pay rate according to the different balances of positive and negative factors of Service life which apply to this group. Part-time personnel including Volunteer Reservist personnel are excluded due to data quality issues.

4. NATO Rank codes and UK Service ranks

Officers

NATO Code	Royal Navy	Royal Marines	Army	Royal Air Force
OF-10	Admiral of the Fleet	-	Field Marshal	Marshal of the RAF
OF-9	Admiral	General	General	Air Chief Marshal
OF-8	Vice Admiral	Lieutenant General	Lieutenant General	Air Marshal
OF-7	Rear Admiral	Major General	Major General	Air Vice-Marshal
OF-6	Commodore	Brigadier	Brigadier	Air Commodore
OF-5	Captain	Colonel	Colonel	Group Captain
OF-4	Commander	Lieutenant Colonel	Lieutenant Colonel	Wing Commander
OF-3	Lieutenant Commander	Major	Major	Squadron Leader
OF-2	Lieutenant	Captain	Captain	Flight Lieutenant
OF-1	Sub-Lieutenant	Lieutenant/2nd Lieutenant	Lieutenant/2nd Lieutenant	Flying Officer/Pilot Officer
OF-D	Midshipman	-	Officer Designate	Officer Designate

Other ranks

NATO Code	Royal Navy	Royal Marines	Army	Royal Air Force
OR-9	Warrant Officer Class 1	Warrant Officer Class 1	Warrant Officer Class 1	Warrant Officer
OR-8	Warrant Officer Class 2	Warrant Officer Class 1	Warrant Officer Class 1	-
OR-7	Chief Petty Officer	Colour Sergeant	Staff Sergeant	Flight Sergeant/Chief Technician
OR-6	Petty Officer	Sergeant	Sergeant	Sergeant
OR-4	Leading Rate	Corporal	Corporal	Corporal
OR-3	-	Lance Corporal	Lance Corporal	Lance Corporal
OR-2	Able Rating	Marine	Private (Classes 1 to 3)	Junior Technician/Leading Aircraftman/Senior Aircraftman
OR-1	-	-	Private (Class 4)/Junior	Aircraftman

5. Links to relevant MOD statistical publications

UK Defence Statistics (compendium publication containing a wide range of statistics)

Quarterly Service Personnel Statistics

Bi-annual Diversity Statistics

1. A difference of 3% or more between the average salaries of females/males and ethnic minority/White are deemed material throughout this report. ↩

2. For pay differentials exceeding 5%, action is needed to address the issue and close the differential. ↩

3. Salary rates below NATO rank OF-7 are recommended by the Armed Forces Pay Review Body (AFPRB) and approved by the Prime Minister each year. AFPRB reports are published annually and can be found at http://www.ome.uk.com/AFPRB_Reports.aspx. Salaries for senior military officers (NATO rank OF-7 and above) and Senior Civil Servants are recommended by the Senior Salaries Review Body (SSRB) and approved by the Prime Minister each year. SSRB reports are published annually and can be found at http://www.ome.uk.com/SSRB_Reports.aspx. ↩

4. Equal pay audit step 4: causes of gender pay differences. EHRC (equalityhumanrights.com) ↩