Pay Equity

We are committed to eliminating any residual pay inequities based on gender or other non-legitimate dimensions of difference.

Both the equal pay gap and the Group-wide gender pay gap are measured and monitored on a voluntary basis by Rio Tinto, in parallel with country-specific mandatory reporting requirements. Under UK regulations, while none of our UK employing entities meet the minimum reporting threshold of 250 employees, details of the gender pay gap for the largest entity (Rio Tinto London Limited) have been voluntarily disclosed.

UK-Specific “Gender Pay Gap” Disclosures

The methodology required by the UK regulations differs from Rio Tinto’s approach to assessing gender pay equity.

The UK methodology calculates the difference in average pay and bonuses between all men and women within an employing entity. It is expressed as a percentage of men’s earnings. This differs from Equal Pay which means that men and women in the same employment performing equal work must receive equal pay.

Rio Tinto is not obliged to publish the “gender pay gap” report for any of its UK employing entities for 2022, as none of these entities reached the minimum reporting threshold of 250 employees. However, we have chosen to voluntarily publish figures for the largest employing entity in the UK, Rio Tinto London Limited, as set out below:

Rio Tinto London Limited Gender Pay Gap Metrics (UK Government Methodology) ¹

Notes:

¹ Year on year variances in the gaps are primarily a reflection of changes in demographics from employee movement across the two periods.

² Indicates by how much women’s mean/median hourly rate is lower than men.

³ Indicates by how much women’s mean/median bonus is lower than men.

⁴All current UK employees are eligible for a bonus. Percentages less than 100% reflect employees joining after the bonus cut-off period.

Definitions used for UK disclosures in the table above:

Mean/median gender pay gap

Difference between the mean/median hourly rate of pay paid to men and women (employees whose pay has been reduced as a result of leave and therefore are not "full-pay relevant" are excluded from the analysis). A positive value indicates that the hourly pay for men is higher than for women.

Mean/median bonus pay gap

Difference between the mean/median bonus pay paid to men and women (employees not in receipt of a bonus are excluded from the analysis). A positive value indicates that the bonus for men is higher than for women.

Prop. men/women receiving bonus

Proportion of men/women who were paid a bonus.

Prop. men/women in each quartile band

Proportion of men/women employees in four quartile bands, which are calculated by dividing the employee population into four equal parts.

Commentary on Results for Rio Tinto London Limited

Gender pay gap calculations, including the UK pay gap methodology, are deeply influenced by the seniority of men and women in an organisation and industry.

Women continue to be under-represented in senior roles at Rio Tinto, and this is evident in Rio Tinto London Limited, where employees are primarily located in a small corporate office in London, which contains some of the most senior roles in the company. As representation of women at senior levels is lower, this proportionally affects the size of the UK gender pay gap metrics. The approach to addressing this in the UK is the same as our global goals, including targets to increase the representation of women in Rio Tinto.

Hourly pay gap

The hourly pay gap reflects the number of women in senior roles at Rio Tinto London Limited, as evidenced by the percentage of women in roles paid in the upper quartile or middle upper quartile.

It is worth noting that the reported level of gender pay gap is materially lower when there are equal numbers of men and women at a given level of seniority. For example, in middle management and middle professional roles, which are the most balanced in terms of gender representation in Rio Tinto London Limited, the mean Gender Pay Gap is 1% in favour of men and the median pay gap is 1% in favour of women at 5 April 2022.

Bonus pay gap (Variable pay)

The ‘bonus’ primarily includes the value of short (STIP) and long term (LTIP) incentives.

Individual and business performance is used to determine the level of STIP awards. Rio Tinto drives consistency and fairness checks on individual performance as part of the performance review process. However, individuals reaching the same performance rating, receiving the same salary, and the same STIP opportunity, may not receive the same STIP cash award where the performance of their respective business units is different.

Consistency and fairness checks are also conducted annually on LTIP awards as part of the Annual Remuneration Review.

The ‘bonus’ pay gap is primarily driven by a higher representation of men in upper bands, which attract higher salaries, STIP and LTIP opportunities.