Women’s Equal Pay Day 2025: New Data for HR Leaders

In 2025, women still earn just 83 cents for every dollar men make, according to Payscale’s latest annual Gender Pay Gap Report.

The report was released just in time for Women’s Equal Pay Day, which falls on March 25 this year. The observance date represents how many additional days into the year that women collectively must work to earn what men did in the previous year.

Here’s where things currently stand – and what HR can do to help level the playing field.

Understanding the Gender Pay Gap & Equal Pay

In simple terms, the gender pay gap is the difference in compensation paid to men and women. It measures how women’s work is valued compared to men’s, the Payscale report explains.

Moreover, the gender pay gap is measured in two ways, with uncontrolled data and controlled data. And it’s crucial to understand what those numbers mean.

Uncontrolled Gender Pay Gap

The uncontrolled gender pay gap measures what women are earning in the workforce compared to men overall, regardless of jobs. 

In 2025, the uncontrolled gender pay gap is $0.83, meaning that women collectively earn 17 percent less than men, the report found. 

This number reveals the overall economic power disparity between men and women in society and how wealth and power are gendered.

Controlled Gender Pay Gap

The controlled gender pay gap compares the earnings of men and women with similar qualifications in the same or similar jobs. Basically, it looks at “equal pay for equal work.”

After adjusting for job title and other relevant factors, women make $0.99 for every $1 men earn, which shows at least some women are receiving unequal pay for the same or similar work. 

The Current State of the Gender Pay Gap

According to Payscale’s data, both of those numbers remain unchanged from last year, meaning the wage equity progress remains stalled, with systemic barriers still limiting women’s earning potential.

As a reminder, the gender pay gap showed some improvement from 2018 to 2022. But progress has been stagnant since the Great Resignation, with notable declines among older women.

Key Data Points for HR Leaders

Generally speaking, most HR leaders (71%) said research on the gender pay gap is meaningful, according to Payscale’s 2025 Compensation Best Practices Report. However, 19% said they believed the research was not meaningful because either the pay gaps did not exist or were not caused by discrimination. 

“It’s disappointing to still see a lack of progress towards closing the gender pay gap. Beyond being the right thing to do, ensuring fair pay without discrimination is required by law. This fact alone should support closing the gender pay gap. Even more, it’s a critical retention tool for businesses, which is why, unsurprisingly, women employees frequently leave organizations because they don’t think they are being paid fairly,” said Lulu Seikaly, senior corporate employment attorney at Payscale. 

So let’s dig into the details of the new report. Here’s what stands out most.

1. The Motherhood Penalty vs. the Fatherhood Premium

For working parents, motherhood hurts pay equity while fatherhood earns dads a raise, Payscale reports. Specifically, women who are a parent or primary caregiver earn:

• 75 cents for every dollar earned by a male parent (uncontrolled pay gap), and
• 98 cents for every dollar earned by a male parent in a similarly situated job (controlled gender pay gap). 

These numbers are unchanged from last year.

Moreover, fathers earn more after becoming a parent, the data found. Specifically, fathers earn 2% more than their childless male co-workers in similarly situated jobs. “In other words, fathers are worth more while mothers are worth less,” researchers concluded.

2. Older, Educated Women Face the Largest Wage Gaps

The gender pay gap widens as women age, as outlined below:

• Ages 20–29: Women earn 86 cents for every dollar men earn overall (uncontrolled). However, when comparing similar jobs, pay is equal (controlled).
• Ages 30–44: The gap increases – women earn 81 cents per dollar overall, and 98 cents per dollar in similar jobs.
• Ages 45 and older: The gap is widest, with women earning just 72 cents per dollar overall and 98 cents per dollar in similar jobs.

In addition, higher education doesn’t eliminate pay disparities. Women with advanced degrees still earn less than their male counterparts:

• MBA holders: 77 cents per dollar
• Master’s degree holders: 80 cents per dollar
• Bachelor’s degree holders: 83 cents per dollar

These figures highlight how experience and education don’t always translate to pay equity, underscoring the need for targeted HR strategies.

3. Pay Transparency Laws Are Helping

States with pay transparency laws are starting to show evidence of closing the controlled gender pay gap – though not fully or consistently, the data shows. 

For example, in 2025, the controlled pay gap remained closed for California, Connecticut, Maryland, New Jersey, New York, Oregon, and Washington, D.C., which also showed closed pay gaps last year.

“Pay transparency has an important role to play here, because when an employee has an understanding of their compensation trajectory it increases trust and loyalty,” Seikaly said, noting that Payscale’s report revealed that 56% of companies are sharing pay ranges in their job postings regardless of whether or not it’s required by law. 

Plus, some states without pay transparency legislation have made progress, which can likely be attributed to the growing awareness around pay equity as well as the efforts of multistate employers to adopt a national approach to pay transparency to simplify compliance. 

Specifically, Alabama, Delaware, Nebraska, North Dakota, Rhode Island, South Dakota and West Virginia have newly closed pay gaps despite not having passed pay transparency legislation, the report showed.

Action Steps for HR 

Payscale’s 2025 Gender Pay Gap Report shows ongoing wage gaps, stressing the need for action. Here’s how HR can help close them.

Prioritize Pay Equity Audits

HR leaders should regularly assess pay equity by examining both company-wide and job-specific wage gaps. Even when adjusting for job titles, women still face a 1% pay disparity, highlighting the need for ongoing monitoring.

Address the Motherhood Penalty

Organizations should evaluate parental leave, caregiver benefits, and promotion pathways to help working mothers, who often face financial penalties. The data shows that mothers continue to earn significantly less than fathers, reinforcing the need for better family-friendly workplace policies.

Focus on Retention Strategies for Older Women

The wage gap widens as women age, particularly for those over 45. HR can implement mentorship programs, leadership development and regular pay assessments to support and retain experienced women.

Increase Pay Transparency

Pay transparency laws have helped narrow the controlled gender pay gap in certain states. Even in states without such laws, companies that openly share pay ranges report increased employee trust and engagement. HR should push for clearer pay disclosures to strengthen workplace fairness and retention. If you missed it, check out the Top 10 Pay Transparency Actions for Employers in 2025.