Global Gender Pay Gap Still at 20%, ILO Urges Coordinated Action

According to the report, women in wage employment globally earn around 20 percent less than men on average.

Women around the world continue to earn significantly less than men despite decades of policy commitments, according to a new report from the International Labour Organization (ILO), which calls for stronger and coordinated action to close the persistent gender pay gap.

The publication, titled “Pay Equity: A Comprehensive Response to the Gender Pay Gap,” presents a new policy framework designed to help governments, employers and workers’ organizations implement practical strategies to achieve equal pay.

Gender Pay Gap Remains Wide

According to the report, women in wage employment globally earn around 20 percent less than men on average.

The disparity is even greater for certain groups, including:

• Women with children

• Women working in informal employment

• Women with disabilities

• Migrant women

The ILO warns that without targeted policies, existing inequalities could deepen as labour markets undergo rapid transformation.

Labour Market Changes Could Widen or Reduce Inequality

Major global trends—including digitalization, artificial intelligence, demographic change and rising care needs—are reshaping employment patterns worldwide.

The report notes that these transformations could either widen gender inequality or create opportunities to close the pay gap, depending on the policies adopted.

To address these challenges, the ILO proposes a Theory of Change and Intervention Model aimed at driving systemic reform.

Policies Needed to Achieve Pay Equity

The report identifies several key policy areas essential to reducing gender-based pay disparities.

These include:

• Strong laws and enforcement institutions

• Fair wage and minimum wage policies

• Pay transparency regulations

• Objective job evaluation systems

• Social dialogue between employers and workers

• Effective labour inspection

• Expanded social protection

• Care policies supporting work–family balance

Together, these measures can help tackle gender stereotypes and structural barriers that contribute to unequal pay.

A Whole-of-Society Approach

The new guide builds on the ILO’s 2013 Equal Pay Guide, incorporating more recent policy developments and emerging tools for addressing wage inequality.

The publication advocates a “whole-of-society” approach, emphasising collaboration among governments, businesses, trade unions and civil society.

It also highlights the growing role of pay transparency laws, which require companies to disclose wage information and help identify pay disparities.

Addressing Structural Inequalities Across Careers

The report adopts a life-course perspective, examining how factors such as unpaid care work, career interruptions and part-time employment accumulate over time to create lower lifetime earnings for women.

These patterns contribute not only to wage inequality but also to a gender pension gap, leaving many women financially disadvantaged in retirement.

The guide also places stronger emphasis on informal work and intersecting forms of discrimination, which disproportionately affect women in many countries.

Global Examples of Successful Policies

The report combines research data with practical examples from countries implementing innovative solutions to close the gender pay gap.

Many of these case studies come from members of the Equal Pay International Coalition (EPIC), a global initiative coordinated by the ILO, OECD and UN Women.

These examples include:

• New pay transparency legislation

• Tools for gender-neutral job evaluation

• Wage policies linked to minimum and living wages

• National programmes promoting equal pay standards

A Call for Immediate Global Action

The ILO says the report serves as both a policy guide and a call to action for governments and employers worldwide.

Achieving equal pay, it notes, requires stronger global commitments and increased public awareness.

The organization emphasizes that equal pay for work of equal value is both a fundamental labour right and a critical driver of economic and social progress.

The guide was developed with support from the French Government through the France–ILO Partnership, and is available in multiple languages to encourage broader adoption of its recommendations.