Pay Balance

As part of Cummins’ leadership culture, we seek to inspire and encourage all employees to reach their full potential.

We recognize that bias can create barriers to individual success and advancement. If left unchecked, biases can negatively impact hiring decisions, promotion practices, and pay distribution. To create an environment in which talent decisions are free of bias, our policies, programs, training and detection processes must be effective.

We have a strong commitment to our stakeholders and to ourselves to prioritize pay equity and the closure of identified pay gaps. Our compensation policies and processes are designed to ensure employees are paid equitably for substantially similar work. Ensuring equity in our pay systems and the closure of pay gaps is critical in creating an environment that enables our employees to achieve their full potential. We apply multiple processes and methods to ensure pay equity and pay gaps are reviewed and addressed on a timely and ongoing basis.


A pay gap calculation is different from a pay equity review. An organization can have equal pay, and still have a gender pay gap.

Pay Gap Analysis –Our Pay Gap analysis calculates the raw pay gap or difference in average wages between male and female employees, or among race or ethnicity groups. A pay gap is most commonly driven by the underrepresentation of a demographic group in more senior and higher paying roles. At Cummins, closing pay gaps is part of our diversity, equity and inclusion work.

Pay Equity Analysis –Our Pay Equity analysis is a more refined statistical analysis that examines equal pay for employees doing similar work across diverse employee groups. A pay equity analysis will indicate whether reward and talent management practices resulted in the intended outcome of fair and equitable pay.

 

Gender Pay Gap Reporting

At Cummins, we are driving initiatives to increase the representation of women within the business and bring greater gender balance into our workforce at all levels. External interest in gender pay fairness is evident, as several countries where we have operations have enacted regulations mandating gender pay gap reviews and reporting.

 

Brazil First National Salary Transparency Report

In accordance with Law 14.611 (Equal Pay Law), created in 2023 by the federal government of Brazil, and subsequent regulations, Cummins, as well as all companies that have 100 or more employees must promote the disclosure of its Salary Transparency Report and Remuneration Criteria, made available by the Ministry of Labor and Employment (MTE). The purpose of this law is to promote the establishment of salary transparency mechanisms and remuneration criteria, as well as to implement diversity and inclusion programs in the workplace.

Please access here the federal government's Salary Transparency Reports released in 2024, based on 2022 data, produced for each Cummins unit in Brazil:

To learn more about Workplace Gender Equality in Brazil and the work Cummins is doing to enhance gender balance in its workforce, check out additional information regarding the reports above in the Gender Equality of Cummins for Brazil.

De acordo com a Lei 14.611 (Lei da Igualdade Salarial), criada em 2023 pelo governo federal do Brasil, e regulamentações subsequentes, a Cummins, bem como todas as empresas com 100 ou mais empregados, deve promover a divulgação de seu Relatório de Transparência Salarial e de Critérios Remuneratórios, disponibilizado pelo Ministério do Trabalho e Emprego (MTE). O objetivo dessa lei é promover o estabelecimento de mecanismos de transparência salarial e de critérios remuneratórios, bem como implementar programas de diversidade e inclusão no ambiente de trabalho. 

Acesse aqui os Relatórios de Transparência Salarial do governo federal, com base de dados de 2022, produzidos para cada unidade da Cummins no Brasil:

Para saber mais sobre a Igualdade entre Gêneros no Local de Trabalho no Brasil e o trabalho que a Cummins está fazendo para intensificar o equilíbrio entre gêneros em sua força de trabalho, confira informações adicionais referentes aos relatórios acima no documento Igualdade de Gênero da Cummins para o Brasil.

Australia Workplace Gender Equality Reporting

The Workplace Gender Equality Agency (WGEA) is an Australian Government statutory agency that promotes and improves workplace gender equality. Each year Cummins is required to complete a detailed questionnaire relating to 6 “gender equality indicators” and submit workforce statistics on employment activity, workforce composition, salaries, and remuneration. To learn more about Workplace Gender Equality in Australia and the work Cummins is doing to improve gender balance in its workforce visit www.wgea.gov.au and view the Cummins Gender Equality Report for Australia in 2023

 

UK Gender Pay Reporting

Cummins in the UK is required by the UK Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 to publish statutory calculations every year showing how large our pay gap is between our male and female employees.

It is important to note the gender pay gap is different to equal pay, which is about pay of men and women for equal work. An organisation can have equal pay, and still have a gender pay gap. The mean gender pay gap is the difference in the average hourly pay for all women compared to all men. The median identifies the middle point of a population. The median pay gap is the gap between the hourly pay rate for a woman at the mid-point, compared to the pay rate of a man at the mid-point.

The mean pay for men is 2.9% higher than that of women. The median pay for men is 6.5% higher than that of women. In comparison, in the UK manufacturing sector the gap is 11.2% mean and 15.9% median, and the national gender pay gap across all companies in the UK shows the median pay for men to be 14.3% higher than that of women (provisional figures from the ONS).

You can read more about our work to improve gender balance in the Cummins in the UK 2023 Gender Pay Gap Report

Past Reports:

 

Cummins, Inc. acquired Meritor, Inc. on 3-Aug 2022.  This included Meritor Heavy Vehicle Braking Systems (UK) Ltd. which is reported separately from Cummins other legal entities in the UK.

You can read more about Meritor´s Gender Pay Gap Reporting in this report: Meritor Heavy Vehicle Braking Systems (UK) Pay Gap Report 2023


Past Reports:

France Gender Equality Index

Cummins is required by law in France to complete the Gender Equality Index which gives a score out of 100. The Index score is based on a set of scored factors with an overall possible score of 100. These factors include pay gap, the differences in the proportion between men and women who gain promotion or salary increases, women’s pay increases during maternity leave and women in the company’s top 10 highest paid roles.

You can see our 2023 results below for our 3 legal entities in France. While we recognize the progress made, we acknowledge that there is work to be done within Cummins' newer, recently acquired entities: Cummins France and Meritor Industrial Products. We are implementing proactive action plans to enhance gender equality within these entities. This includes targeted initiatives and strategies aimed at providing an equitable and diverse environment for all employees.

Cummins Filtration SARL (Atmus)

Cummins Filtration scored 92 out of 100, an industry-leading index score and an improvement from the previous year; resulting from a clear work plan and commitment to gender equality. The group will continue promoting gender equality.

 

Calculable indicator
(1=yes, 0=no)

Value of the indicator Number of points obtained Maximum number of points for each indicator Maximum points for each calculable indicator
1 - Pay Gap (%) 1 2.2 37 40 40
2 - Difference in individual increase rates (%) 1 0.6 20 20 20
3 - Promotion rate gap (%) 1 1.7 15 15 15
4 - Percentage of employees receiving a raise in the year following their return from maternity leave 1 100 15 15 15
5 - Number of employees of the under-represented sex among the top 10 highest earners 1 2 5 10 10
Total calculable indicators     92   100
Index (out of 100 points)     92   100

 

Meritor Industrial Products – Saint-Etienne

 

Calculable indicator
(1=yes, 0=no)

Final result obtained Number of points obtained Maximum number of indicator points Maximum number of points for calculable indicators
1 - Pay Gap (%) 1 7 33 40 40
2 - Difference in individual increase rates (%) 1 2 35 35 35
3 - Percentage of employees receiving a raise in the year following their return from maternity leave 0 Incalculable   15 0
4 - Number of employees of the under-represented sex among the top 10 highest earners 1 0 0 10 10
Total calculable indicators     68   85
Index (out of 100 points)     80   100

Meritor Industrial Products scored 80 out of 100, an improvement from the previous year. To drive further improvement, we have developed the following goals:

  • Pay gap: 33 pts / 40. We will carry out a specific analysis, during each annual salary review exercise, to ensure the absence of unjustified gaps in terms of pay between women and men of the same classification and same age group. Corrective actions will be put in place if any anomalies are identified.
  • Difference in distribution of individual increases and promotions: 35 pts / 35.
  • Percentage of employees receiving pay raises upon their return from maternity leave: Incalculable. We did not have any employees who returned from maternity leave in 2023.
  • Balance between the number of women and men in the 10 highest salaries: 0 pts / 10.

We will create succession plans for our critical roles to ensure gender balanced representation. These plans will incorporate development initiatives designed to facilitate the upward mobility of our female talent.

Cummins France SARL

Cummins France is a very recently acquired business and as part of our integration plan, we are currently engaged in socializing our mission, vision and values which includes our leadership behaviors model. Our core values include Diversity, Equity and Inclusion and through 2024 we will plan to implement strategies and actions that uphold our values and improve gender representation.

Cummins France SARL's gender equality index and pay gap indicator scores are incalculable. This is because there are insufficient numbers of men and women in pay comparison groups and that those groups large enough to compare are less than 40% of the workforce. Incalculable results are common among smaller companies (50 to 250 employees) like Cummins France. However, for the calculable indicators, the results are as follows:

 

Calculable indicator
(1=yes, 0=no)

Final result obtained Number of points obtained Maximum number of indicator points Maximum number of points for calculable indicators
1 - Pay Gap (%) 0 Incalculable   40 40
2 - Difference in individual increase rates (%) 1 2.4 25 35 25
3 - Percentage of employees receiving a raise in the year following their return from maternity leave 1 100 15 15 15
4 - Number of employees of the under-represented sex among the top 10 highest earners 1 1 0 10 10
Total calculable indicators     40   100
Index (out of 100 points)     Incalculable   100

Indice d’égalité des sexes en France

Cummins est tenue par la loi française de produire l’Indice d’égalité des sexes qui donne un score sur 100. Le score de l’Indice est basé sur un ensemble de facteurs notés, le score général possible étant de 100. Ces facteurs comprennent l’écart de salaire, les différences dans la proportion d’hommes et de femmes qui obtiennent des promotions ou des augmentations de salaire, les augmentations de salaire des femmes pendant les congés maternité et le nombre de femmes dans les 10 postes les mieux rémunérés de la société.

Vous pouvez voir nos résultats 2023 ci-dessous pour nos trois entités juridiques en France. Nous savons que des progrès ont été faits, mais nous sommes conscients des progrès qui ont été faits, toutefois, nous reconnaissons qu'il reste des tâches à accomplir nécessitant notre attention au sein des nouvelles entités récemment acquises par Cummins: Cummins France et Meritor Industrial Products. Nous mettons en œuvre des plans d’action proactifs pour améliorer l’égalité des sexes au sein de ces entités. Ces plans comprennent des initiatives et des stratégies ciblées qui visent à fournir un environnement équitable et diversifié à tous les employés.

Cummins Filtration SARL (Atmus)

Cummins Filtration a obtenu une note de 92 sur 100, un des meilleurs scores du secteur, en amélioration par rapport à l’année précédente ; cela résulte d’un plan de travail clair et d’un vrai engagement en faveur de l’égalité des sexes. Le groupe continuera à promouvoir l’égalité des sexes.

 

Indicateur calculable
(1=oui, 0=non)

Valeur de l'indicateur Points obtenus Nombre de points maximum de l'indicateur Nombre de points maximum des indicateurs calculables
1 - Écart de rémunération (en %) 1 2.2 37 40 40
2 - Écarts d'augmentations individuelles (en points de %) 1 0.6 20 20 20
3 - Écarts de promotions (en points de %) 1 1.7 15 15 15
4 - Pourcentage de salariés augmentés au retour d'un congé maternité (%) 1 100 15 15 15
5 - Nombre de salariés du sexe sous-représenté parmi les 10 plus hautes rémunérations 1 2 5 10 10
Total des indicateurs calculables     92   100
INDEX (sur 100 points)     92   100

 

Meritor Industrial Products – Saint-Etienne

 

Indicateur calculable
(1=yes, 0=no)

Résultat final obtenu Nombre de points obtenus Nombre de points maximum de l'indicateur Nombre de points maximum des indicateurs calculables
1 - Écart de rémunération (en %) 1 7 33 40 40
2 - Écarts d'augmentations individuelles (en points de %) 1 2 35 35 35
3 - Pourcentage de salariés augmentés au retour d'un congé maternité (%) 0 Incalculable   15 0
4 - Nombre de salariés du sexe sous-représenté parmi les 10 plus hautes rémunérations 1 0 0 10 10
Total des indicateurs calculables     68   85
Index (sur 100 points)     80   100

Meritor Industrial Products a obtenu une note de 80 sur 100, en amélioration par rapport à l’année précédente. Pour poursuivre l’amélioration, nous avons développé les objectifs suivants:

  • Écart de rémunération : 33 pts / 40. Nous effectuerons une analyse spécifique, lors de chaque revue annuelle de salaire, pour éviter les écarts de rémunération injustifiés entre femmes et hommes ayant la même classification dans le même groupe d’âge. Des actions correctives seront mises en place si des anomalies sont identifiées.
  • Différence dans la répartition des augmentations individuelles et des promotions : 35 pts / 35.
  • Pourcentage des employées recevant des augmentations de salaire à leur retour de congé maternité : Incalculable. Nous n’avons pas eu de collaboratrices qui sont revenues de congé maternité en 2023.
  • Équilibre entre le nombre de femmes et d’hommes dans les dix postes les mieux payés : 0 pts / 10.

Nous créerons des plans de succession pour nos postes critiques afin d’assurer une représentation équilibrée des sexes. Ces plans intégreront des initiatives de développement conçues pour faciliter la mobilité ascendante de nos talents féminins.

Cummins France SARL

Cummins France est une activité acquise très récemment et, dans le cadre de notre plan d’intégration, nous sommes actuellement engagés dans le processus de familiarisation avec notre mission, notre vision et nos valeurs, y compris notre modèle de comportement de direction. Nos valeurs fondamentales comprennent la diversité, l’équité et l’inclusion et, au cours de l’année 2024, nous prévoirons de mettre en œuvre des stratégies et des actions qui défendent nos valeurs et améliorent la représentation des sexes.

Pour Cummins France SARL, l’indice de l’égalité des sexes et l’indicateur d’écart salarial ne peuvent pas être calculés. En effet, le nombre d’hommes et de femmes est insuffisant dans les groupes de comparaison de salaires, et les groupes assez grands pour être comparés représentent moins de 40 % de la main-d’œuvre. Des résultats non calculables sont courants dans les petites entreprises (50 à 250 employés) comme Cummins France. Cependant, pour les indicateurs calculables, les résultats sont les suivants:

 

Indicateur calculable
(1=yes, 0=no)

Résultat final obtenu Nombre de points obtenus Nombre de points maximum de l'indicateur Nombre de points maximum des indicateurs calculables
1 - Écart de rémunération (en %) 0 Incalculable   40 40
2 - Écarts d'augmentations individuelles (en points de %) 1 2.4 25 35 25
3 - Pourcentage de salariés augmentés au retour d'un congé maternité (%) 1 100 15 15 15
4 - Nombre de salariés du sexe sous-représenté parmi les 10 plus hautes rémunérations 1 1 0 10 10
Total des indicateurs calculables     40   100
Index (sur 100 points)     Incalculable   100

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