Global gender pay gap narrows by just 2% points in nearly a decade: ILO

The global gender pay gap has narrowed by just two percentage points in nearly a decade, with women still earning around 18 per cent less than men on average, according to the International Labour Organization (ILO).

The latest ILO estimates, compared with data from 2018, show only limited progress in closing the gap. The pace of improvement remains uneven across income groups, highlighting the need for stronger measures to address persistent pay disparities.

Progress varies across income groups

High-income countries recorded the largest improvement, narrowing their gender pay gap by around 2.5 percentage points over the period.

Lower-middle-income countries reduced the gap by two percentage points, while upper-middle-income countries recorded an improvement of just one percentage point.

“A reduction of just two percentage points in ten years is simply not enough,” said ILO director-general Gilbert Houngbo.

Houngbo added, “Equal pay is not only a question of fairness; it is fundamental to achieving gender equality and advancing social justice in the world of work, hence the urgency of accelerating progress and turning commitments on equal pay into results.”

The ILO said progress remains possible when policies are designed around the specific conditions of each labour market.

“Progress is possible, and it requires smart policies that are context-specific and that are tailored to a country's own labour-market conditions,”Emanuela Pozzan, senior gender specialist at the ILO  said.

“And it is important that we act now, because there are millions of women whose work sustains families, businesses, and communities and must not continue to be undervalued,” Pozzan noted.

ILO calls for stronger pay measures

The ILO has called for a combination of measures to accelerate progress on equal pay. These include stronger pay transparency, objective and gender-neutral job evaluation, effective wage policies and collective bargaining.

The organisation also highlighted the importance of enforcing equality legislation, alongside greater investment in care systems and social protection.

“Together, governments, employers and workers can remove the structural barriers that underpin this injustice and strengthen the laws and institutions that promote equal pay,” Chidi King, chief of the Gender, Equality, Diversity and Inclusion (GEDI) Branch of the ILO elaborated.

Social dialogue seen as key to closing gap

The ILO said governments, employers and workers have a role in addressing the structural factors that contribute to the gender pay gap.

“Through social dialogue, including collective bargaining, they can address the undervaluation of work done by women, strengthen pay transparency, build fairer wage structures, and ensure that women have an equal voice in shaping their economic lives,” King concluded.

The latest figures underline that while the gender pay gap has narrowed globally, the pace of change remains slow and significant disparities continue to affect women's earnings.