On 20 November 2024, the UK marked Equal Pay Day, the symbolic point in the year when women effectively stopped earning relative to men due to the gender pay gap. This year’s date was two days earlier than in 2023, reflecting a widening of the pay gap for the first time since 2013. It is a sobering reminder that progress on pay equality has not only stalled but is now moving backwards.
Every year, the day highlights the enduring inequality faced by women in the workplace and serves as a rallying call for action across all sectors.
What is Equal Pay Day?
Equal Pay Day is calculated based on the average difference in hourly pay between men and women working full-time. It marks the point where, if comparing annual salaries, women stop earning while men continue to be paid. In essence, women are working “for free” for the remainder of the year.
In 2024, the gender pay gap for full-time workers has increased. This is a stark reversal of the trend seen over the past decade, where slow but steady progress had been made in narrowing the gap.
Key statistics from the Fawcett Society
The Fawcett Society’s research highlights the deep-rooted issues underpinning this year’s earlier Equal Pay Day:
- The gender pay gap for full-time workers in the UK has widened to 11.3%, up from 10.7% last year.
- Women working full-time earn, on average, £7,572 less per year than men in the same roles. Over a lifetime, this gap accumulates into a significant shortfall in income and pension savings.
Major contributing factors
The gender pay gap stems from a complex combination of factors, both structural and cultural:
- Occupational segregation: Women are overrepresented in lower-paid sectors such as care, retail and hospitality. Men dominate higher-paying fields like technology, finance and engineering, perpetuating income disparities.
- Career breaks: Women are disproportionately impacted by caregiving responsibilities, often stepping back from work to care for children or elderly relatives. These breaks impact long-term earnings and pension contributions.
- Pay discrimination: Despite being illegal, pay discrimination persists, with women still earning less than men for the same work in some cases.
- Unpaid labour: Women shoulder the majority of unpaid domestic and caregiving responsibilities, limiting their ability to pursue higher-paying roles or work additional hours.
The intersection of gender, race and disability
The gender pay gap is not experienced equally across all groups of women. Women from Black, Asian and minority ethnic backgrounds face larger pay disparities. Disabled women are also disproportionately affected, with a double penalty of lower employment rates and lower wages when in work.
The role of employers
Employers are critical to addressing the gender pay gap. The Fawcett Society highlights several areas where organisations can make a difference:
- Transparent pay practices: Publishing clear salary bands and conducting regular pay audits can ensure fairness.
- Flexible working: Advertising all roles as flexible by default helps support women with caregiving responsibilities.
- Career development: Providing mentorship programmes, training opportunities and clear promotion pathways can help women progress into higher-paying roles.
- Workplace culture: Tackling unconscious bias and fostering an inclusive environment is key to retaining and promoting women.
Government action
While the introduction of mandatory gender pay gap reporting in 2017 was a step forward, further action is needed. The Fawcett Society has called for:
- Lowering the reporting threshold from 250 employees to 50 employees to include more organisations.
- Requiring employers to publish action plans outlining how they will address pay gaps.
- Introducing meaningful penalties for organisations that fail to comply or show no progress.
The cost of inaction
The gender pay gap doesn’t just harm women, it has a wider economic impact. Addressing pay inequality could boost the UK economy by billions of pounds. Companies with diverse leadership and equitable pay structures report higher profitability, improved employee satisfaction and greater retention rates.
Looking ahead
Equal Pay Day 2024 is a wake-up call that equality is not inevitable. The earlier date this year is a reminder that progress can backslide without sustained effort and vigilance. By committing to systemic change, addressing the barriers faced by women and fostering inclusive workplaces, the UK can move closer to a future where Equal Pay Day no longer needs to exist.
The challenge is great, but the benefits of addressing pay inequality, both economically and socially, are undeniable. Let this year’s Equal Pay Day serve as a renewed call to action, pushing for a society where everyone, regardless of gender, is paid fairly for their work.
