Gender equality has come a long way since the Equal Pay Act of 1963, and today, more women are in the workforce than ever. However, there are still equality issues that are challenging women in the workplace, including the gender pay gap.
Put simply, women, both in the U.S. and globally, are still earning less than men for doing the same work.
While progress has been made, the matter continues to affect women across industries, influencing their financial security, career growth and overall quality of life. This gap highlights ongoing disparities that demand attention and action.
Despite milestones in workplace equality, true gender equality isn’t here just yet, which makes it an important topic for workers, employers and policymakers alike. That’s why understanding the pay gap matters. It’s a step toward empowerment and change, which offers opportunities for female leaders to break barriers and reshape the future.
What Is the Gender Pay Gap?
The gender pay gap, or the gender pay wage gap, is the difference between what men and women earn on average. It’s usually measured by comparing the median pay, either hourly or annually, and it is often shown as a percentage of what men make. For example, if women earn 85 cents for every dollar a man earns, that means there’s a 15% gap.
Different organizations measure it slightly differently. The Pew Research Center looks at median hourly earnings for both full-time and part-time workers. The U.S. Census Bureau focuses only on full-time, year-round workers. According to Pew, women earned 85% of what men earned in 2024, which is a small increase from 81% in 2003. The Census Bureau reported that women working full-time earned 83% of what men earned in 2023.
The gap also varies depending on the industry and job level. In some high-paying fields like tech, the gap can be larger because women are underrepresented in senior roles. In lower-paying sectors like caregiving, women are overrepresented, which keeps average earnings lower. Even among younger workers just starting out, differences exist.
Is the Gender Pay Gap Real?
Because everyone’s experience is different, some people ask the question, ‘Is the Gender Pay Gap Real?’ The answer is yes. The gender pay gap is backed by extensive data, and it’s recognized globally. The global gender pay gap remains around 20%, with women earning on average 77 cents for every dollar men earn.
Here’s a snapshot of key gender pay gap statistics over a span of years. It shows the gender pay gap in the U.S. as the median hourly earnings of U.S. women as a percentage of men’s median earnings.
| Year | All Workers (Age 16+) | Workers (Age 25-34) |
| 1982 | 65% | 74% |
| 2003 | 81% | 88% |
| 2024 | 85% | 95% |
Some argue the gap is exaggerated or disappears once you adjust for job type, hours worked or experience. While it’s true that factors like education, occupation and work hours explain part of the difference, a portion of the gap remains unexplained. This suggests that deeper issues like bias and discrimination may still play a role.
In fact, 50% of U.S. adults surveyed in 2022 said they believe women are treated differently by employers, a belief shared by 61% of women and 37% of men. And despite more women moving into traditionally higher-paying fields, they’re still underrepresented in leadership and overrepresented in lower-paying roles.
What Causes the Gender Pay Gap?
Why is there a gender pay gap? There are multiple aspects that impact this. It’s shaped by a mix of structural and societal factors that affect how women are hired, promoted and paid. Causes of the gender pay gap include the following:
Different Jobs, Different Pay
Men and women still tend to work in different fields. Jobs dominated by women, like nursing or teaching, often pay less than male-dominated industries like tech or engineering. In 2021, the U.S. Bureau of Labor Statistics found that 74% of people working in education and health services were women—sectors with lower average pay. Meanwhile, higher-paying fields still have fewer women, especially in leadership roles.
The Motherhood Penalty
Another factor is how work and caregiving responsibilities are divided. The International Labour Organization (ILO) points to something called the “motherhood penalty.” In 2021, only 66.5% of women with children under 6 were active in the labor force, compared to 93.7% of men in the same situation. Because women are more likely to take on unpaid caregiving, they may end up with fewer years of work experience or reduced hours, which adds up over time. Interestingly, men often see their earnings increase after becoming fathers, sometimes referred to as the “fatherhood wage premium.”
Bias Still Plays a Role
Bias, whether direct or subtle, still influences hiring, promotions and pay. Many employers still assume men are better suited for certain roles. This perception leads to women being overlooked, not because of performance, but because of gender. Over time, these patterns build up, making bias a major factor in why the gender pay gap persists.
Limited Flexibility at the Top
It can be difficult for women to reach senior roles because those positions often lack flexibility. The rigid schedules tied to high-level jobs leave little room for caregiving, which disproportionately affects women, especially mothers, and limits their ability to compete for advancement.
How Can the Gender Pay Gap Be Reduced?
Fixing the current gender pay gap isn’t something one group can do alone. It takes effort from individuals, businesses and governments. Here are some ways progress is being made, and how we can keep pushing forward to improve.
What Governments Can Do
Public policy plays an important role in setting standards for fairness and equity in the workplace. A few key strategies improve the gender pay gap for the same job include:
- Pay transparency laws: States like California and New York now require companies to share salary ranges for job postings. This helps workers spot and question unfair pay differences. Transparency can lead to fairer pay and more accountability.
- Family-friendly policies: Perks like paid parental leave and affordable childcare help more women stay in the workforce. This reduces career interruptions and narrows the earnings gap.
- Support for developing regions: The International Labour Organization (ILO) urges governments, especially in low-income countries, to improve job access and working conditions for women, who sometimes earn as little as 29 cents for every dollar earned by men.
What Companies Can Do
Workplaces can take intentional steps to promote fairness and ensure women have equal opportunities to thrive. Steps to reduce the gender pay gap in the workplace include:
- Conducting regular pay audits to identify and correct wage disparities within roles and departments
- Setting equity goals that are clear, measurable and integrated into broader business objectives, not just stated as values
- Creating mentorship and leadership programs to support women’s career advancement and improve representation in higher-paying positions
- Offering flexible work options; such as remote work, flexible hours or caregiving accommodations, that support work-life balance and career continuity, especially for working mothers
What Individuals Can Do
While broader changes matter, individual actions still have power, especially when it comes to advocating for fair pay. Helpful steps include:
- Preparing for salary conversations. Confidence grows with research and practice. Knowing how to navigate money conversations at work can boost your chances of securing fair pay.
- Knowing your market worth. Research industry benchmarks for your role and experience so you can enter negotiations with clarity and leverage.
- Speaking up. High-profile examples, like the response to Caitlin Clark’s WNBA salary, help keep the spotlight on pay equity and encourage others to question unfair norms.
Every Action Counts
No single solution will fix the pay gap overnight. But when individuals, companies and policymakers all take action, progress becomes possible. Together, we can create workplaces where everyone has an equal opportunity for success.
Is There Still a Gender Pay Gap in 2025?
The gender pay gap still exists in 2025. Though there’s been progress, it hasn’t disappeared. As of 2025, U.S. women earn about 85 cents for every dollar earned by men, according to Pew Research (2024). That’s an improvement from 81 cents in 2003, but it still falls short of true equality. On a global scale, the gap is even wider.
Younger workers are helping to close the gap, with women aged 25–34 earning about 95% of what their male peers make. Still, barriers like occupational segregation, caregiving responsibilities and workplace bias continue to hold women back.
While the pay gap has narrowed from the 35-cent difference seen in 1982, closing it completely takes more than just time. It requires action, through pay transparency laws, workplace policies and stronger negotiation strategies. And because this gap affects women’s lifetime earnings, it has long-term effects on financial goals, especially retirement planning.
Progress is real, but the work isn’t finished. We all need to speak up and push for change to help build a future where pay reflects skill and contribution, not gender.
Photo by Hyejin Kang/Shutterstock.
