The gender pay gap is one example of gender-based inequality in our society. But what is the gender pay gap? What causes it? And why do we need to care about it? 

What is the gender pay gap?

The gender pay gap is the difference in average pay between women and men. It is calculated using the following equation:  

 (Men’s average pay – women’s average pay) ÷ Men’s average pay 

Often, the gender pay gap is presented as a percentage, based on average hourly pay. Currently, the gender pay gap in Wales stands at 8.9% [ONS, 2024]. 

It’s worth noting that the gender pay gap is not the same as equal pay. Equal pay is about parity of pay for comparable work. “By law, men and women must get equal pay for doing ‘equal work’. This is work that equal pay law classes as the same, similar, equivalent or of equal value.” [Acas]. 

What causes the gender pay gap?

The gender pay gap is the result of gender inequality in our labour market and wider society.

Labour market imbalances 

Women in Wales and across the UK earn less on average than men. This is rooted in the jobs and sectors they tend to be employed. Women are more likely than men to work in lower paid, more precarious sectors such as care and leisure, whereas men dominate higher-paid managerial and senior official roles, as well as skilled trades occupations (see table below).

Occupation	Percentage of women in employment working in this occupation (Wales)	Percentage of men in employment working in this occupation (Wales)	Average hourly pay for this occupation   (UK)
Managers, directors and senior officials	7.2%	11.4%	£25.64
Skilled trades occupations	2.4%	16.1%	£15.81
Caring, leisure and other service occupations	14.6%	4.1%	£13.03
Administrative and secretarial occupations	15.3%	5.6%	£14.44

Source: Data on average pay, occupations and economic inactivity sourced via the ONS – Annual Survey of Hours and Earnings 2024 and Annual Population Survey 12 months to December 2024. 

As well as dominating lower-paid employment sectors, women are also more likely to be working part-time. If we look at average pay for full time and part-time roles in Wales – as well as the proportion of women and men working part-time – we can see that due to working fewer hours, women in Wales earn significantly less than men on average. 

• Full-time average hourly pay: £17.30 

• Part-time average hourly pay: £13.01 

• Percentage of women working part-time: 38% 

• Percentage of men working part-time: 14.5% 

Unpaid care

A key driver of this part-time working is gender imbalances in caring responsibilities and unaffordable childcare provision. Persistent gender roles in our society mean that women take on most of the caring responsibilities in our society, whether that be caring for children, the elderly or disabled relatives. This care is mostly unpaid and has a knock on effect on women’s paid employment, meaning that they are more likely to be working part-time – or to be economically inactive altogether – in order to accommodate such responsibilities. 

For example, UN Women UK found that a quarter of working mothers had quit work to accommodate childcare, while a further 26% had unwillingly reduced their hours to make time for caring responsibilities [People Management, 2024].  

• Percentage of women economically inactive due to looking after family or home: 21.4% 

• Percentage of men economically inactive due to looking after family or home: 6.5% 
• Average cost of a part-time nursery place for a child under 2 in Wales: £155.04 [Coram, 2024] 

 Why should we care about the gender pay gap?  

The gender pay gap is a means of understanding whether our economy and labour market is delivering equitably for women and men. The presence of a gender pay gap not only impacts women directly, but can also have economic impacts.  

Research from 2018 suggested that Wales’ economy could grow by £13.6bn through improved gender equality. There is also a link with poverty. The fact that women are more likely to work in lower paid, part-time work, leaves them more vulnerable to economic shocks, financial insecurity and to poverty.  

A healthy and equitable economy would be one which delivers fairly for people of all genders. The gender pay gap is therefore a very important indicator of economic equality and of the fairness of our economy and society.

Source: Unless otherwise stated, the data in this article on average pay, occupations and economic inactivity sourced via the ONS – Annual Survey of Hours and Earnings 2024 and Annual Population Survey 12 months to December 2024-