The gender pay gap persists: A controversial take or a global fact?

Over our consultations with the private sector, we noticed a pattern: Many believe gender pay gap does not exist simply because pay is all merit-based nowadays. Men and women with the same position and rank are now paid the same rate and according to performance. Contrary to popular belief, gender pay gap is not solely measured by equal pay for equal work—other pressing issues like gender roles and biases affecting women’s labor force participation are also drivers of pay gap.

The fact stands that no country has closed the gender pay gap

While significant strides have been made, the Global Gender Gap Report 2024 reveals that it will take more than 100 years to reach full gender parity, more so with gender pay equity. United Nations studies also show that women are still paid less than men by 20 percent globally.

This Sept. 18, we celebrate “International Equal Pay Day,” reminding us of our global commitment to end gender pay disparity. Equal pay is a recognized human right. While a critical basic step in closing the gap, underlying factors need to be investigated making it a complex issue:

Occupational bias and trends

Gender norms can perpetuate the gap, like occupational segregation, a worldwide trend pertaining to unequal distribution of men and women across and within job types. Men dominate industries such as energy and construction, while women are concentrated in health and education sectors. It can also mean disparities among higher-level positions possibly influenced by beliefs and biases influencing recruitment and promotion. Safety and mobility concerns can also contribute to segregation.

“Penalties” from bearing unpaid care work

Well-known burdens women carry are the “child and motherhood” penalties. Child penalty stems from societal expectations that women should devote more time to care responsibilities than men, while motherhood penalty is the disadvantage women face for having children. The disproportionate burden of care work causes career setbacks and continuously hinders women’s full participation in the labor force.

To crack glass ceilings, we must deal with the leaky pipeline

The glass ceiling and the leaky pipeline are phenomena that prevent women from reaching leadership positions, especially in male-dominated industries. Systemic barriers, lack of flexibility, and limited mentorship contribute to these challenges. We learned from our recently launched study on the Census on Women in Executive Leadership Teams in Publicly Listed Companies that women’s representation in leadership positions increased in the past years. Yet, most women still occupy functional roles rather than line roles, the latter being essential in advancing to higher positions.

Transforming information into action

On Sept. 28, the Philippine Business Coalition for Women Empowerment (PBCWE) is one with the world in celebrating the International Day for Universal Access to Information. We recognize that access to information is a privilege that underscores the importance of data in supporting Philippine workplaces to thrive.

We help companies navigate their workplace gender equality journey through the gender equality, assessment, results, and strategies. This assessment helps firms understand their current gender equality and diversity situation and identify areas for improvement by establishing baseline information. Baselines help track progress and evaluate outcomes. We focus on areas like gender pay gap, flexible work, and workforce composition. To address gender pay gap, we usually recommend: 1) conducting pay gap audits with a gender lens, 2) developing policies emphasizing inclusive pay, and 3) communicating gaps for transparency.

Through our discussions with stakeholders, we also found that a good outlook in eliminating the gender pay gap is this: While meritocracy is great, fostering an inclusive organization and providing equitable access to opportunities can help in equalizing the meritocracy field.

So, does gender pay gap persist or is it a controversial take?

We believe that gender pay gap is a persistent divide, a lingering truth even in today’s progressive societies. An intergenerational systemic issue deeply rooted in biases and discriminatory practices, and an indicator of failure to realize women’s rights to opportunities and potential economic contributions.

Intertwined with advocating for gender pay equity is promoting access to right information—a cornerstone of progress helping us make evidence-based decisions. While it raises awareness, it also has the power to exacerbate issues and widen gaps if not used properly, such as in cases of misinformation now that we are ushering in the digital era.