UK Gender Pay Gap Narrows
The UK sees the lowest gender pay gap and one of the biggest decreases in average gender pay gaps since mandatory reporting started in 2017, says PwC
The overall UK gender pay gap has seen one of the largest decreases since the introduction of pay gap reporting - signaling the sustained efforts by organisations driving change – according to PwC analysis. However, even with this year’s large decrease, data shows the longer-term overall pace of change remains slow, and it will take at least another 40 years for the pay gap to close completely.
The 2025 Gender Pay Gap Report, published by PwC, shows a decrease of 0.6% in the mean hourly pay gap, narrowing from 11.8% to 11.2%, and a decrease of 0.5% for the median hourly pay gap, from 9.1% to 8.6%. This compares to a decrease of 0.4% in 2024, and is one of the most significant year-on-year improvements to date – the largest being a 0.7% drop in 2022/23. This year saw over 10,700 organisations submitting gender pay gap data, the highest number since reporting became mandatory for companies with other 250 employees.
Policy changes, such as the introduction of the Equality (Race and Discrimination) Bill, which proposes to extend gender pay gap reporting to include mandatory ethnicity and disability reporting in the UK, along with additional pay gap reporting and pay transparency obligations introduced across the EU, are continuing to help shine a spotlight on pay fairness. These measures continue to hold organisations to account on pay gap reporting and contribute to an increasingly complicated regulatory landscape.
Andrew Curcio, global co-leader for reward & benefits at PwC, said: “The dial is finally shifting. Whilst we’re seeing incremental change - this year’s data shows that when employers take deliberate action over the long term, progress follows although it will still take a long time for the pay gap to close. From reviewing pay structures, improving gender balance of senior roles, and transparent and inclusive promotion and recruitment processes, the organisations making the biggest strides are those embedding equity and consistency into their day-to-day decisions, not just their annual reports.”
