Pay parity out of reach

The gender pay gap will take 45 years to close at the current rate of progress, a report by PwC has found after scrutiny of company reports submitted to the government’s website.

The consulting firm’s analysis showed the mean gender pay gap decreased by just 0.4% in 2023/24, from 12.2% to 11.8%. Almost six in 10 organisations reported decreases in pay gaps compared to 53.7% of organisations the previous year, but the falls were less than 2%.

The median hourly pay gap also decreased marginally from 9.2% in 2022/23 to 9.1% in 2023/24, while a fifth of organisations reported no change or a small increase (0-2%) in the pay gap, up from 17.6% in 2022/23.

The overall gap has only reduced by 1.6% since the requirement to report was introduced in 2017, meaning a 21-year-old woman entering the workforce today will not see gender pay parity during her working life, said PwC.

“While the gender pay gap continues to move in the right direction, the data once again highlights that organisations are facing difficulties in reducing reporting figures,” said Katy Bennett, diversity, inclusion and equity consulting director at PwC.

“Societal barriers play a strong part but there are still things businesses can do to drive change, so it is critical for organisations take targeted actions to address them.”