Home Diversity Gender pay gap stalls despite pay transparency laws, motherhood penalty persists

Gender pay gap stalls despite pay transparency laws, motherhood penalty persists

by Todd Humber
A+A-
Reset

The gender pay gap has stalled in 2025, with systemic barriers continuing to restrict women’s earning potential despite the rise of pay transparency laws, according to a new report by Payscale.

Women currently earn just 83 cents for every dollar men make—a rate unchanged from 2024. The controlled pay gap, which accounts for job title and compensable factors, remains steady at 99 cents.

Motherhood notably amplifies wage disparities. Women with children earn 75 cents for every dollar fathers earn, while men actually receive a wage increase of 2% compared to childless men, Payscale reported. “Motherhood continues to financially penalize women while rewarding fathers,” said Ruth Thomas, pay equity strategist at Payscale.

The impact is even greater for women of color, with American Indian and Alaska Native mothers earning just 64 cents compared to fathers.

Pay transparency laws, enacted to help address wage disparities, have produced mixed results. While states like California, Connecticut, Maryland, and New York have maintained controlled pay gaps at parity, others such as Massachusetts, Montana, and New Mexico saw gaps widen.

Women who stay with their employers for benefits like flexible schedules often sacrifice higher pay opportunities, further exacerbating the gap. Although women actively seeking new positions see narrower pay disparities, overall progress remains slow.

Even advanced education does not guarantee pay equity. Women with MBAs face the largest pay gap among degree holders, earning 77 cents for every dollar earned by men with the same credentials. Health professional doctorates see the smallest gap, at 89 cents.

Women remain significantly underrepresented in leadership roles, especially among women of color. Only 5% of white women and 3-4% of Hispanic, Black, and Asian women reach executive positions, compared to 7% of white men. Even at executive levels, women earn 72 cents to every dollar men make without controlling for job characteristics.

Industries steeped in traditional gender roles, such as Legal, Farming & Fishing, and Management, report some of the widest pay gaps. In Legal professions, women earn just 63 cents compared to men.

“Ensuring fair pay isn’t only the right thing to do, it’s legally required,” said Lulu Seikaly, senior corporate employment attorney at Payscale. “Fair compensation boosts retention, yet many women leave roles due to pay inequity.”

Despite setbacks, corporate support for pay equity has grown 19% since 2020, reflecting increased company commitments independent of legislative requirements.

The 2025 Payscale report analyzed salary data from over 369,000 U.S. respondents collected between January 2024 and January 2025.

You may also like

Leave a Comment

About Us

HR News America is a trusted, national source of news, information, and best practices for human resources professionals and senior leaders.

Featured Posts