Women who return to work part-time after having a baby are earning 33% less than men by the time their child is aged 12

gender equality

New research by the Institute for Fiscal Studies (IFS) found that young women receive about 18% less per hour than men. This then begins to increase each year following child birth, and as a result, women who become mothers earn 33% less per hour than men over 12 years. They are also missing out on promotions and experience which is restricting their earning power.

Robert Joyce, associate director at IFS, commented: “The gap between the hourly pay of higher-educated men and women has not closed at all in the last 20 years. The reduction in the overall gender wage gap has been the result of more women becoming highly educated, and a decline in the wage gap among the lowest-educated.

“Women in jobs involving fewer hours of work have particularly low hourly wages, and this is because of poor pay progression, not because they take an immediate pay cut when switching away from full-time work. Understanding that lack of progression is going to be crucial to making progress in reducing the gender wage gap.”

Further research and a report by the Chartered Management Institute (CMI) and XpertHR found that men are 40% more likely than women to be promoted into management roles. According to the BBC, Mark Crail, content director at XpertHR, said: 'The gender pay gap is not primarily about men and women being paid differently for doing the same job.

'It's much more about men being present in greater numbers than women the higher up the organisation you go. Our research shows that this gap begins to open up at relatively junior levels and widens - primarily because men are more likely to be promoted.'

Analysis of salary data of also found that in the past year, 14% of men in management roles were promoted, compared with only 10% of women. According to HR Magazine, Ann Francke, chief executive of the CMI, stated that this is moving backwards. “Promoting men ahead of women is keeping us all back.  Diversity delivers better financial results, better culture and better decision-making.

“Even before the new regulations kick in, employers need to get on board with reporting on their recruitment and promotion policies and how much they pay their men and women. Transparency and targets are what we need to deal with stubborn problems like the gender pay gap.”