Progress on closing the gender pay gap has stalled in 2025, despite widespread adoption of pay transparency laws, according to a new report from Payscale.
Women continue to earn just 83 cents for every dollar earned by men — unchanged from the previous year — highlighting persistent barriers to wage equality across sectors.
The report emphasizes a continued “childbearing penalty,” noting that women with children earn only 75 cents for each dollar made by fathers. By contrast, fathers receive a pay premium of approximately two per cent compared to childless men.
“Even though there has been a recent weakening of public support around Diversity, Equity, and Inclusion (DEI), some states have shown promising progress,” said Ruth Thomas, pay equity strategist at Payscale.
Thomas highlighted that corporate commitments to pay equity increased by 19 per cent compared to 2020. However, women remain significantly underrepresented in leadership roles. Only five per cent of white women reach executive levels compared to seven per cent of white men, and rates are lower for women of colour, with only three per cent of Hispanic and Asian women and four per cent of Black women reaching top positions.
At executive levels, women earn just 72 cents for every dollar men make when job characteristics are not accounted for, and 93 cents when these factors are controlled.
The gap is particularly acute in fields dominated by traditional gender norms, such as the legal sector, where women earn only 63 cents on the dollar. Even in female-majority sectors like healthcare and education, women consistently earn less than their male colleagues.
The research suggests education alone does not solve the pay gap. Women with MBAs face one of the largest gaps, earning just 77 cents to men’s dollar. In comparison, women with health professional doctorates fare better, earning 89 cents per dollar.
Pay transparency laws have helped close gaps in several states, notably California, Connecticut, and New York, but progress is uneven. Massachusetts, Montana, and New Hampshire have seen gaps widen despite legislative efforts.
“Ensuring fair pay without discrimination is not only required by law but also a critical retention tool for businesses,” said Lulu Seikaly, senior corporate employment attorney at Payscale. “When employees understand their compensation trajectory, it increases trust and loyalty.”
