Understanding the gender pay gap: a call for equality

It says a lot about global gender inequality that the world still needs an Equal Pay Day, a date set aside each year to highlight how far into the year women must work to earn what men earned the year before. 

It says even more that in 2025, the world observed this symbolic day on March 25, indicating that women had to work nearly three extra months to match what their male counterparts earned by December 31, 2024. 

No matter how you crunch the numbers, they hurt

The gender pay gap in South Africa ranges between 23% and 35%, meaning women earn roughly R72.44 for every R100 earned by men. According to recent data from the World Economic Forum (WEF) and other sources, this is down from R89 for every R100 men earned in 2008.

Another way to understand the gender pay gap is that, on average, women are paid 83% of what men earn for the same work. 

Another telling date on the gender equity calendar is Equal Pay Day for working mothers, observed in September. While women are already disadvantaged when it comes to pay, and working moms are hit even harder. 

“Caregiving penalty” is both a privilege and a problem for women at the same time. Women naturally care and want to care, but it comes with a financial commitment that is not always shared or seen by others in the household.

So, for women, the imbalance shows up on every payslip.

The pay gap does not retire

The gender pay gap also follows women into retirement.

The University of Stellenbosch’s Women’s Report 2022 states that South Africa’s gender pension gap stands at 26% and is worsened by the fact that women live five years longer than men on average. 

If a woman starts working at 20, she would have to work until 72 to earn what a man earns by the time he turns 60.

Maybe no wonder then that Discovery found that women are 30% more likely to make early withdrawals from their retirement fund Savings Pot and are 80% more likely to use it to pay for school fees, reflecting the financial pressure and caregiving expectations placed on them.

Some industries are worse than others

In April 2025, researchers Ihsaam Bassier (University of Surrey) and Leila Gautham (University of Leeds) wrote in The Conversation that, from studying South African tax data over an 8-year period, it is evident that nearly half of South Africa’s gender pay gap is due to women working at lower-paying companies than men.

Occupation, hours, and experience explain some of it. But an often-overlooked reason is simply where women work. There is a concentration in lower-paying sectors like education, retail, and care work, compared to men who dominate higher-paying industries like mining, construction, and manufacturing. The companies that hire them play a huge role in shaping their lifetime earnings.

Meaningful change starts with awareness

Awareness is the first step to addressing the gender pay gap.

On a personal finance level, this means women must be mindful of how they manage their money on a day-to-day basis, but also in planning for the future. Women may need to sweat their money harder and longer, making informed choices that protect their finances and financial future despite earning less.

Corporations have an opportunity to step up 

Understanding and acknowledging the gender pay gap at a corporate or managerial level provides the opportunity for managers, and especially women in leadership roles, to use the statistics to push for change. Women can use their leadership positions to be intentional about closing the gap.

Change is starting to happen at the corporate level, with progress seen in companies that guarantee that when women return to work after attending to caregiving or other family responsibilities, they will fill the same position without any downgrade or lower remuneration. 

Not too late to act 

The WEF notes that based on the collective pace of progress in some 100 economies, it will take more than 120 years to reach full gender pay parity globally.

It is clear that the gender pay gap is more than just a statistic; it is a systemic issue affecting everyday lives, families, and futures.

Despite the historical roots of the gender pay gap – including that only in 2000 was gender discrimination in the workplace outlawed – it is not too late to act.

Whether you are an employer reviewing compensation structures, a policymaker shaping fair labour laws, or an individual advocating for equality, actions matter. The past may have set the stage, but shaping the future is still in our hands.

* Parry, co-founder of the independent financial education provider Worth.

PERSONAL FINANCE