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Equal work, unequal pay: Understanding the gender pay gap

by Chumasande Matiwane
Picture: Pexels/Cottonbro

The gender pay gap remains one of the most persistent inequalities in the modern workplace. Although women’s participation in education and employment has increased significantly over the past decades, women continue to earn less than men on average.

Also see: 10 Inspiring South African women who changed history

The International Labour Organisation (ILO) estimates that women globally earn around 20% less than men, while the Organisation for Economic Co-operation and Development (OECD) reports an average gender pay gap of about 11% among full-time workers across OECD countries. 

The problem becomes particularly concerning when pay inequality is combined with occupational segregation, unequal access to leadership positions and the unequal distribution of unpaid care work.  

Evidence from the World Economic Forum (WEF) shows that women remain concentrated in sectors such as healthcare, care services and education. They remain significantly underrepresented in industries such as infrastructure, mining and other traditionally male-dominated fields. 

Why is the gender pay gap persisting?

The gender pay gap cannot be explained simply by women and men receiving different salaries for identical jobs. A range of structural factors contributes to the overall gap. 

One important factor is occupational and industry segregation. Women are more likely to work in sectors that have historically been undervalued and lower paid.  

The WEF reports that women made up 58.5% of the workforce in healthcare and care services and 52.9% in education in its 2024 data, while women accounted for fewer than 20% of senior roles in industries such as oil, gas, mining and infrastructure. 

Care responsibilities also play an important role. Women are more likely to interrupt their careers or reduce their working hours because of childcare and other unpaid responsibilities. The WEF reports that women are 55.2% more likely than men to take career breaks, and their breaks are longer on average. 

Motherhood can therefore have long-term financial consequences. The ILO notes that motherhood can create a wage penalty that persists across a woman’s working life. 

The most immediate consequence of unequal pay is reduced financial security. A lower salary means less disposable income, reduced ability to save and invest, and greater vulnerability to economic shocks. 

Importantly, the effects accumulate over a person’s lifetime. Someone who earns less throughout their career is likely to accumulate less wealth and receive lower retirement benefits. 

This makes the gender pay gap more than an issue of monthly salaries. It can influence women’s economic independence, housing choices, access to financial services, retirement security and their ability to withstand unemployment or unexpected expenses. 

Also see: Professor Liesl Zühlke on women in science, saving lives and building a legacy of hope

In the South African context

The issue of equal work, unequal pay is particularly important in South Africa, where high levels of economic inequality intersect with gender inequality. 

A UN Women study on South Africa found that the gender pay gap contributes to poverty and inequality among women.  

It also found that lower earnings during women’s working lives can translate into lower pensions and other social-security benefits later in life. 

Addressing the gender pay gap in South Africa therefore has implications beyond workplace fairness. It can contribute to greater household economic security and help reduce broader inequalities. 

Closing the gender pay gap requires more than simply telling employers to pay women and men equally. Governments and businesses need to address the structural causes of inequality. 

Also see: Womandla Foundation to honour innovative women at 6th Annual Awards

Featured image: Pexels

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