International Equal Pay Day: what's it all about?

Today is International Equal Pay Day; a significant date on the global calendar with the intention of raising awareness about the fact the gender pay gap continues to persist in the modern world. There shouldn’t be a gender pay gap, but whilst there is, days like today will serve as a reminder of this economic disparity and also of the continued efforts needed to achieve pay equity across the globe.

What is International Equal Pay Day?

Observed annually on September 18, International Equal Pay Day was first established by the United Nations in 2020 to emphasize the dire need to close the gender pay gap. Whilst many countries mandate equal pay for equal work, the gender pay gap continues to persist for a range of reasons, and International Equal Pay Day helps to bring these issues to the forefront, raising awareness for individuals, championing businesses to share the things they are doing to help close the gap, and encouraging governments to acknowledge the wider problem.

Why is it necessary?

International Equal Pay Day is important for a number of reasons. It helps with global awareness;  by marking this day, the world acknowledges that gender pay inequality is not limited to one region or industry—it is a global issue. It affects women everywhere, regardless of their level of education, the industry they work in, or where they come from.

Equal pay is not just a women’s issue, but a matter of economic justice. When we pay women less for their work, it obviously affects their financial wellbeing, but also undermines other women and their development. Reducing the gender pay gap has been proven to increase economic growth due to women participating fully in the workplace.

International Equal Pay Day is also a platform for helping encourage governments to publish stronger policies to address wage disparity. By highlighting the pay gap with awareness days, it means governments and organisations cannot ignore the problem and put pressure on them to make changes, which can include things like being more transparent about pay, implementing better maternity and parental leave policies and improving access to childcare.

It also just drives us towards a world that is more inclusive and fair, where all individuals, regardless of gender, have equal opportunities to thrive and grow.

Why Does the Gender Pay Gap Exist?

There are myriad reasons for the existence of the gender pay gap, and many are these to do with how women have been perceived over time. Women often end up working in lower-paying industries and roles, with men dominating higher-paying sectors – even within the same industries, women might end up being funnelled towards roles that pay less or offer less chance for progression.

Women are also usually the people who end up taking care of children, or elderly family members. This can limit the time they have to spend time in paid work, and work towards progressive goals and opportunities for career progression, which results in lower lifetime earnings. Women are also more likely to work part-time due to family and care responsibilities, and working part-time usually means fewer benefits and lower wages.

We also need to acknowledge how big a part gender -based discrimination plays in wage equality. Women can be paid less than men for the same job, or face a bias in hiring and promotion which can lead to fewer opportunities for salary growth. There also typically tends to be a lack of transparency around pay structures, making it difficult for women to know whether they’re actually being compensated fairly for the work they’re doing.

What are we doing about it?

In the UK, International Equal Pay Day is recognised as part of the ongoing efforts to address the national gender pay gap, which has been a hot topic of discussion for years. Despite the UK introducing the Equal Pay Act in 1970, which made it illegal to pay men and women differently for the same work, there's still disparities - women earn approximately 14.9% less than men on average.

The UK acknowledges International Equal Pay Day in a number of ways.

We run advocacy and awareness campaigns: Organizations such as the Fawcett Society spearhead campaigns to raise awareness about the gender pay gap and to push the call for urgent action. Campaigns like these utilise social media and public events, sharing stories of women's struggles with the pay gap and how real people's lives are affected by it.

Our Government implement initiatives: The UK has legislation requiring large companies to report on their gender pay gap, with the aim of encouraging businesses to taker steps to reduce wage inequality. On International Equal Pay Day, many businesses are prompted to review their pay structures and make commitments to closing the gap.

Employers take action: Some UK companies take the day as an opportunity to implement or highlight policies that promote pay equity. This includes conducting internal pay audits, introducing gender-neutral parental leave policies, and ensuring that recruitment and promotion practices are fair and transparent.

We share things in the media: The UK media often dedicates coverage to the gender pay gap on International Equal Pay Day, publishing articles and interviews that explore the state of pay inequality in various sectors. This helps to keep the issue in the public eye and maintains pressure on policymakers and employers.

We engage with those around us: On this day, various events, webinars, and discussions are held, bringing together employers, employees, and activists to discuss practical solutions for reducing the gender pay gap. These conversations often focus on the structural changes needed to support women in the workforce, from affordable childcare to flexible working arrangements.

A stark reminder

International Equal Pay Day serves as a global reminder that, despite progress, pay inequality remains a significant issue. In the UK and around the world, systemic barriers and social norms continue to affect women’s earning potential, impacting their economic independence and security. By recognizing this day, we acknowledge the importance of addressing the gender pay gap, not just for women but for the health of societies and economies overall.

Achieving pay equity will require concerted efforts from governments, businesses, and individuals alike. From policy reforms to cultural shifts, every step brings us closer to a future where gender no longer dictates a person's earning potential.