Payscale’s 2025 gender pay report reveals the need for pay equity analysis

In 2025, Equal Pay Day was pushed back further into the year, falling on March 25 compared to March 12 in 2024. This shift aligns to the research conducted by the American Association of University Women (AAUW) and highlights ongoing challenges in achieving gender pay parity.

While Payscale’s research does not show that the overall gender pay gap has widened, it does show that progress has stalled, and in some cases, disparities have worsened. This stagnation underscores the urgent need for businesses to invest in pay equity analysis to ensure fair compensation practices.

Understanding the gender pay gap

The gender pay gap measures the difference in earnings between men and women and is evaluated in two ways:

• Uncontrolled Gender Pay Gap: This measures the earnings of women compared to men without accounting for job type. In 2025, women earn $0.83 for every $1.00 men earn, showing no improvement from last year.
• Controlled Gender Pay Gap: This measures pay disparities when accounting for job title and qualifications. In 2025, the controlled pay gap remains at $0.99, indicating that women are still paid less for the same work.

While the controlled gender pay gap highlights pay disparities for equal work, the uncontrolled gender pay gap reflects broader economic inequalities, revealing that high-paying roles remain dominated by men.

Why did Equal Pay Day move backward?

Several factors may have contributed to the delayed Equal Pay Day in 2025:

• Economic conditions: The labor market has slowed, with fewer job changes leading to fewer opportunities for women to negotiate higher salaries.
• DEI backlash: A shift in corporate commitment to diversity, equity, and inclusion (DEI), particularly after the Supreme Court’s 2023 ruling against Affirmative Action, may have contributed to stagnation.
• Impact of pay transparency laws: While pay transparency legislation has been enacted, its effects take time to materialize, and its implementation varies across industries and states. No conservative state has yet passed pay transparency legislation, citing the burden on businesses. Pay transparency legislation introduced in Montana failed to pass and pay transparency legislation in Virginia was vetoed.
• Pay equity analysis in decline: According to Payscale’s 2025 Compensation Best Practices Report, investment in pay equity analysis has been in decline slightly over the last few years, which corresponds with the stagnation of the closing of the gender pay gap. While pay equity analysis has increased dramatically since 2020 and is something a majority of organizations say is a current or planned initiative in 2025 (57 percent), adoption has slowed. This is an area where employers can directly make an impact.

Jobs with the widest pay gaps

Payscale measures the controlled pay gap and provides a list of jobs that exhibit significant gender pay disparities. In 2025, the top 20 jobs with the widest controlled pay gaps include:

• Clergy ($0.87 for every $1.00 earned by men)
• Insurance Sales Agents ($0.88)
• First-Line Supervisors ($0.89)
• Dispatchers ($0.90)
• Cost estimators ($0.90)

The pay gap and marginalized communities

The gender pay gap is even more pronounced for women of color. The 2025 data shows:

• American Indian women experience the widest pay gap when uncontrolled.
• Pacific Islander women have the largest controlled pay gap.
• Pay gaps have widened for Asian, Black, Hispanic, and white women.

These disparities highlight the intersection of gender and race in wage inequities, emphasizing the need for targeted solutions.

The broader economic and social impact

Women earning less than men translates into long-term financial disadvantages, affecting savings, retirement, and economic mobility. Studies suggest that closing the gender pay gap would boost overall economic growth. The World Bank estimates that equal labor participation between men and women could increase income per capita by nearly 20 percent in the long run.

Policy and corporate actions needed

To prevent Equal Pay Day from moving further into the year, businesses and policymakers must take action:

1. Embrace pay transparency: Sharing pay ranges helps close pay gaps and foster trust.
2. Invest in pay equity analysis: Organizations must conduct regular analysis to identify and address unexplained pay disparities.
3. Ensure equal opportunity: Addressing biases in hiring, promotions, and leadership roles is essential to closing both controlled and uncontrolled gaps.
4. Support working parents: Restructuring workplace policies to accommodate caregivers, including paid family leave and flexible work arrangements, can reduce career penalties.

Conclusion

Despite years of advocacy, the gender pay gap persists. The delay of Equal Pay Day in 2025 is a wake-up call that pay equity is not a given — it requires continuous effort. Employers must prioritize pay equity analysis, transparency, and fair hiring and promotion practices. Only through sustained commitment can we ensure that progress toward gender pay parity does not stagnate or reverse.

Investing in pay equity is not just a moral imperative — it is a strategic business decision that fosters a more inclusive, productive, and equitable workforce. Overtime, this creates a competitive differentiation that will allow organizations who invest in pay equity and pay transparency excel in the talent market.

Let’s make 2025 the year organizations embrace transparency and take decisive action to close the gender pay gap once and for all.

To learn more about the gender pay gap, read Payscale’s Gender Pay Gap Report.