The gender pay gap is the difference between the average earnings of men and women across an organisation or workforce.
What is the gender pay gap?
The gender pay gap measures the difference between what men and women earn on average. It doesn’t compare individuals doing the same job but looks at overall pay patterns across a business or sector. The gap can be influenced by factors such as role distribution, seniority, working patterns and access to progression opportunities.
Understanding the gender pay gap helps organisations identify where inequalities may exist and where action is needed to support fair and consistent pay practices.
Things to know
- It reflects average earnings, not equal pay for equal work
- A gap can be influenced by representation in senior roles, part‑time work and career breaks
- Regular analysis helps organisations understand underlying causes
- Reducing the gap supports fairness, transparency and inclusion
- Many countries require employers to report their gender pay gap
FAQs
Is the gender pay gap the same as unequal pay?
No. Unequal pay is paying people differently for the same work. The gender pay gap looks at average earnings across the whole workforce.
Why does the gender pay gap exist?
Common factors include fewer women in senior roles, differences in working patterns and the impact of career breaks.
Why should organisations care about the gender pay gap?
A smaller gap supports fairness, strengthens employer reputation and helps attract and retain talent.
How can employers reduce the gender pay gap?
By reviewing pay practices, supporting progression, offering flexible working and ensuring transparent, consistent decision making.
How is the gender pay gap calculated?
Typically, by comparing the median or mean average pay of men and women in an organisation.
