The 22nd of November marked Equal Pay Day - the symbolic date when women effectively stop earning relative to men. So, in effect, women worked for free for the rest of 2025.

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As March rolls around every year, International Women’s Day comes and goes and so does the conversation around the gender pay gap. Everyone seems to talk about it for a few days and then…it fades into the background once again. So, we’re here to keep that conversation going because that’s when progress is truly made.

Many believe the term ‘gender pay gap’ refers to men and women being paid differently for doing the exact same role, with women being the ones who are paid less. Well, that’s not strictly true. There’s so much more to it than that. In simple terms, it is the difference in hourly earnings between men and women. Yes, in 2026, this difference still exists and although it’s on the right track to becoming fairer, it doesn’t look like it’s going to become equal any time soon.

Currently, the average difference in wages between men and women is 12.8%. The largest disparity lies in the finance and insurance industry where that gap stretches to 27.2% and it widens considerably in older age groups. According to the Trades Union Congress, the gender pay gap is not expected to close until 2056 if progress remains at the current rate. That’s another 30 years of disparity and inequality.

To give a picture of the UK workforce, we have to understand a few key points:

1. Men in full-time employment earn more than women in full-time employment across all major occupation groups*
2. Women are more commonly employed in lower paid jobs
3. The proportion of women in high-paying occupations (those where pay increases with age and experience) decreases with age*

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So, why does the gender pay gap exist?

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The difference in income between men and women can be attributed to a variety of cultural, societal and educational factors.

Women are more likely to leave their jobs to have children or to undertake caring responsibilities. This means a period of maternity leave, followed by additional time off for childcare, depending on the availability (or lack thereof) and affordability of paid childcare. This could also mean time off for other caring responsibilities, such as looking after aging parents.

Most women return to work after maternity leave on a part-time basis. This employment arrangement oftentimes remains so as they take on more work at home, therefore leaving less time for paid work. On average, women are taking on more unpaid work than men, including childcare, cooking, housework and the emotional labour of running the household (remembering birthdays, school events, appointments). Taking on the majority of these responsibilities is what allows men to dedicate more time to pursuing their careers.

As women take on lower paid, part-time roles, their opportunity for career progression and salary growth is reduced which can help to explain why the pay gap increases with age. With career breaks, women may have missed the chance to gain experience to apply for higher-level management roles, explaining why in many organisations, they are concentrated in lower-paid roles.

As a result of these career breaks and periods of reduced income, pension contributions are reduced significantly, leaving women at a disadvantage when it comes to retirement. They can have up to 50% less than their male counterparts. Caring for children is still considered unpaid work and less valuable than full-time employment, even though it is indisputably vital within society.

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And that’s not all…

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If the inequality we just described isn’t enough, you’ll be glad to know that it doesn’t stop there! Women face additional financial disparity every single day.

The Pink Tax is a difference in cost where products marketed to women cost more than those for men, commonly seen with items like razors and deodorant.

Then there is the Safety Tax. With a male violence epidemic, there are extra precautions women need to take to feel safe - taking taxis home instead of walking or paying more to live in a safer area.

Finally, the Beauty Tax - women are held to certain standards due to their appearance. The pressure to always look professional and “put together” fuels the billion dollar beauty industry.

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What does the future look like?

Financial education needs to be more accessible to allow women to navigate their career path. Organisations need to be transparent in their workforce overview and pay scales. Discrimination needs to be eliminated - organisations cannot overlook women for promotions, assuming they will leave to have children. Women shouldn’t be punished for becoming mothers and job flexibility should promote the sharing of care responsibilities between parents.

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There needs to be a push for change.

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* According to the Office for National Statistics

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