Menu
Save, make, understand money

Household Bills

Gender pay gap will narrow to lowest ever levels next year

Gender pay gap will narrow to lowest ever levels next year
Matt Browning
Written By:
Posted:
17/07/2024
Updated:
17/07/2024

The differences between men and women’s earnings will narrow to its lowest ever level in 2025, payroll data reveals.

Men are estimated to earn an average of £22.30 per hour next year, compared to the average woman’s earnings of £19.64 per hour, according to the Global Payroll Association (GPA). This represents a pay difference of 13.5%.

The gap will continue to get smaller by the end of 2024, when it is forecast to land at 14.1%.

In 2013, when the wage data was collected, there was a 23.7% difference in what men earned compared to women, where the average hourly wage for a female member of staff was £13.36.

The prediction was based on 10 years of earning data for men and women and what they would both earn having the same job.

Meanwhile, apart from paying women the same level of income as men, one factor that could speed up the process of the gender pay gap narrowing is an increase in paternity leave pay.

Sponsored

How life insurance can benefit your health and wellbeing over the decades

Sponsored by Post Office

Paternity leave currently only lasts either one or two weeks. But the fact it’s paid at 90% of their earnings could benefit those taking maternity leave and therefore make the gap smaller if the length of time was extended to a minimum of six weeks.

This could enhance existing maternity rights to reduce the gender employment gap, financial hardship and the gender pay gap.

While the disparity between what genders earn has decreased since 2013 and looks set to be at its lowest ever level in 2025, the pace of the change needs improving, according to one financial expert.

‘Let’s just get it done’

Melanie Pizzey, CEO and founder of the GPA, said: “We should all obviously be pleased that the gender pay gap is getting smaller and forecast to continue shrinking in the coming years.

“But let’s be honest, it’s happening very slowly and there is absolutely no good reason for any gap to exist at all.”

Pizzey added: “Employers have a real responsibility to make sure that the gender pay gap is eliminated as quickly as possible by paying women and men in the same roles the same amount of money. It is not complicated, and it’s not difficult. Let’s just get it done.”