The gender pay gap report 2025 shows that this year’s UK median gender wage gap is 8.6%, down from 8.95% last year. It doesn’t seem so bad when stated in this manner, does it? Let’s not drink the prosecco yet. The uncomfortable truth is hidden behind the single-digit number: 78% companies still pay men more for the exact same work than they do women.
In some sectors, such as finance and technology, the gap in pay is even greater – sometimes over 30%.
The numbers are ‘better,’ so yes. What is the truth? The world is still a male-dominated one, but with more accurate reporting. All employers in the UK who have 250 employees or more are legally required by law to publish data about gender pay gaps.
We are not talking only about numbers. We’re not just talking numbers.
It’s easy to forget that when we speak in terms of statistics and percentages we’re really talking about something humane: livelihoods, dignity and sense of value.
Women who earn less have less money for saving, investing, or to fall back on in tough times. Pay gaps can affect housing, pensions and even healthcare.
In the post-war era, men were paid more than women because they were the primary breadwinners. Women ‘didn’t need to earn that much’ as their husbands’shouldered the majority of the financial burden.’ It was a terrible mistake to pay men more than women in the post-war years, as they were the primary breadwinners and their husbands’shouldered a lion’s share of financial burdens.
When we underpay for women, we do not only shortchange individuals, but we also weaken households, families, and entire communities.
Who is the beneficiary of the status quo?
We have no other choice but to ask: Who wins when men get paid more for the same job as women?
It’s not the women who are working. It’s certainly not the girls who are preparing for school and their first careers. They want to be treated equally. It’s also not the businesses who claim to be “future-focused” while maintaining reward systems that reinforce inequality.
Only those at the top are the real winners. They benefit from a system which rewards seniority and sameness.
The Economic Cost of Inequality
This is not just a problem at work – it’s one that affects the entire nation, and has a socio-economic impact.
Women who are fairly paid spend, invest, create job opportunities, and contribute to the growth of the nation when they receive a fair wage.
It is not only fair, but also good economics to close the gender pay gap by 2025. Women who have equal financial opportunities invest more into their families, communities and education, resulting in long-term prosperity.
Equal pay has a micro-level effect, boosting productivity, retention and reducing turnover costs. It also strengthens the employer brand. Fair pay is a key strategic advantage for business. Pay equity is an important driver of innovation, progress and prosperity.
It’s not just unjust, but it’s also economically irresponsible to hold onto old pay gaps.
HR: You’ve got power and responsibility
Many organisations have turned gender pay gap reporting into a simple tick-box exercise. People professionals can lead meaningful, real change that goes beyond simple compliance. Here’s how:
1. Don’t stop at the minimum
You’re in the dark if you only do what is legally required. Then, invest in a comprehensive project for job evaluation and grading and conduct salary benchmarking. It ensures that equal pay is given for work of equal quality, regardless of the job title, gender, race or physical/mental abilities.
Take it a step further by looking at the starting salary, performance reviews, and promotions. Investigate why there are differences in salary bands, and ensure there is a plan to close any gaps.
2. Fix the pipeline
The ladder is often broken, and this leads to pay gaps higher up. It is time to review the promotion process in order to give women access to strategic projects, stretch roles and leadership development. It’s time to go beyond mentorship and training. Women need advocacy and support in order to advance their careers.
3. Challenge pay norms
Even if you’re not a specialist, get involved with remunerations and benefits. Transparent job grades and pay bands are more likely to be successful than companies that award performance bonuses or salary increases behind closed doors. Make sure that the decision-making process is structured and free from bias or favouritism.
4. Everyone can benefit from a normalized flexibility
Women shouldn’t get a free pass on flexibility in the workplace and around work hours. It should be a part of the culture of your business and managers must understand the importance of outcomes-based management over presenteeism. Flexible working is the norm and should not be a request for a committee. Also, consider whether you’re merely offering fake flexibilities.
5. Linking progress with performance at the top
Reward equity. Create policies that link executive bonuses and performance metrics with diversity and inclusion results. Leaders can be held accountable for their actions, not only in public statements.
Gender pay gap 2025: Stop reporting, and start transforming
It is encouraging to see that this year only 5% (or fewer) organisations have submitted their data on pay gaps late. Compliance is not the equivalent of commitment to change.
The moment is more important than mere PR. Asking hard questions, challenging long-standing norms and rethinking work to achieve equity rather than efficiency requires courage. We can only achieve this if we make it a strategic goal and have senior leaders who are committed to long-term change, working alongside us to bring about the changes which are overdue.
