International Women’s Day: Understanding the Gender Pay Gap

Last updated: 22 October 2026

The UK gender pay gap is the difference between men’s and women’s average hourly pay. For full-time employees it was 6.8% in April 2026, down from 7.2% a year earlier, according to the Office for National Statistics. Across all employees it was 12.3%. Lower pay often means lower pension saving, so the gap can follow women into retirement.

International Women’s Day on 8 March each year is a good moment to look at what the gap is, how it affects women’s finances, and what employers and employees can do about it.

What is the gender pay gap?

The gender pay gap is the difference in average earnings between men and women. It is influenced by various factors, including occupational segregation, career interruptions due to caregiving responsibilities, and differences in access to higher-paying roles.

The ONS measures it as the difference between men’s and women’s median hourly earnings (excluding overtime), as a percentage of men’s. It is not the same as unequal pay for the same job: the ONS explains that its measure looks across all jobs in the UK and does not show whether men and women are paid differently for the same or similar work.

While the gap has been narrowing, it persists, particularly for older employees and those in higher-paying positions.

What is the UK gender pay gap now?

According to the Office for National Statistics, using its Annual Survey of Hours and Earnings:

• In April 2026, the gender pay gap among full-time employees was 6.8%, down from 7.2% in April 2025. A decade ago it was 9.4%, and 25 years ago it was 16.4%.
• Among all employees, full-time and part-time, the gap was 12.3%, down from 13.0% in April 2025.
• The gap is larger for employees aged 40 and over than those under 40. It was 8.2% for full-time employees aged 40 to 49, compared with 4.1% for those aged 30 to 39.
• High earners experience a greater gender pay gap compared to lower-paid employees. Among the top 10% of full-time earners it was 17.3%, compared with 1.5% among the lowest 10%.

The 2026 figures are provisional, and the ONS will publish final figures next year.

Why is there a gender pay gap?

There is no single cause. The ONS notes that the gap increases considerably around the age of 40, which it says is largely explained by the impact of motherhood. Working patterns matter too: in April 2026, 83% of employee jobs done by men were full-time, compared with around 60% of those done by women, and part-time jobs pay less per hour on average. That is why the gap across all employees is wider than the gap for full-time employees.

How does the gender pay gap affect women’s pensions?

Pay affects pensions. Workplace pension contributions are usually a percentage of your pay, so lower earnings, part-time hours and time out for caring can all mean less going into your pension.

The Department for Work and Pensions measures this as the gender pensions gap. For people aged 55 to 59 with private pension savings in Great Britain, median private pension wealth in 2020 to 2022 was £81,000 for women and £156,000 for men, a gap of 48%. The DWP says the figures should be treated with caution because of changes to how the survey was collected. It also notes that automatic enrolment has equalised workplace pension participation between eligible men and women in the private sector.

The value of your pension can fall as well as rise.

What can women do to protect their finances?

Small steps now can make a real difference later:

1. Check your payslip and pension contributions. In most automatic enrolment schemes, the total minimum contribution is 8% of your earnings between £6,240 and £50,270 a year, with at least 3% from your employer. Some schemes pay in more.
2. Ask how a career break affects your pension. Before parental leave or a move to part-time hours, ask your employer what happens to your pension contributions.
3. Register for Child Benefit, even if you don’t claim it. Parents registered for Child Benefit for a child under 12 get National Insurance credits automatically, which count towards your State Pension.
4. Check your State Pension forecast. Use the government’s State Pension forecast to see how much you could get and when.
5. Find any old pensions. If you’ve changed jobs, the government’s Pension Tracing Service can find contact details for pension schemes you’ve lost touch with.
6. Get support. Our pensions team can help you plan for retirement, and you can book a chat with one of our coaches to build your confidence with money. MoneyHelper, backed by government, also offers free guidance on pensions.

The value of your pension can fall as well as rise.

How can employers help close the gender pay gap?

Employers with 250 or more employees must report their gender pay gap every year. Whatever your size, these steps can help:

1. Conduct regular pay audits. Employers should analyse their pay structures to identify disparities and take corrective action. Transparent salary reviews can help ensure that employees are paid fairly for equal work.
2. Promote pay transparency. Making salary ranges public and ensuring clear progression pathways can help reduce unconscious bias and inequality in pay negotiations.
3. Support career development for women. Investing in leadership training, mentorship programmes, and professional development opportunities for women can help close the gap, especially among high earners.
4. Encourage flexible working. Many women take on caregiving responsibilities, which can impact career progression. Offering flexible working arrangements, such as remote work or adjusted hours, can help retain talent and support career growth.
5. Address bias in promotions and hiring. Implementing structured interviews, diverse hiring panels, and objective performance evaluations can help reduce bias and ensure fair opportunities for all employees.
6. Provide financial education and support. This is where Lifetime come in! Financial education plays a crucial role in helping employees to make informed decisions about their earnings, savings, and future financial security. Our financial wellbeing benefit can help HR teams support their employees by providing access to expert financial guidance, educational resources, and tools, including the Lifetime app. By equipping employees with financial knowledge, businesses can reduce barriers that contribute to the gender pay gap.

Frequently asked questions

What is the gender pay gap in the UK?

For full-time employees, 6.8% in April 2026, according to the ONS. Across all employees, it was 12.3%. The 2026 figures are provisional.

Is the gender pay gap the same as unequal pay?

No. The gender pay gap compares average hourly pay for men and women across all jobs. Unequal pay means paying men and women differently for the same or similar work.

What is the gender pensions gap?

The difference in private pension savings between men and women. DWP figures for 2020 to 2022 put it at 48% for people aged 55 to 59 with private pension savings in Great Britain.

When is International Women’s Day?

8 March, every year.

Take action today!

On International Women’s Day and every day, let’s commit to creating workplaces that foster equality and financial wellbeing. Find out more about how Lifetime can support your team!

Written by Ione Morton, Marketing Executive at Lifetime

This article is general information, not personal financial advice. Lifetime is authorised and regulated by the Financial Conduct Authority (FRN 225795).