International Equal Pay Day

What is this day about?

International Equal Pay Day aims to raise awareness about pay gaps and to promote equal pay for work of equal value.

Pay gaps happen when there is a large gap in average hourly earnings between different groups when analysed by characteristics unrelated to skill or experience. This is often caused by systematic discrimination and inequity. For example, the mean pay gap for Global Majority staff compared to white staff was 12.7% in 2023.

Equal pay for work of equal value is the idea that employees should be paid the same for work that is of equal value, regardless of characteristics such as gender, race, disability, etc. For example, the Equality Act 2010 requires that employers pay men and women equally for doing the same work.

Dedicating a day to promoting equal pay is an opportunity for inclusive organisations to champion equal pay, raise awareness about the benefits of pay gap reporting and get stakeholder investment which will support greater action in support of equal pay. Find out how you can take part.

When does the day take place?

International Equal Pay Day takes place annually on 18 September.

Why was this day created?

The United Nations (UN) started International Equal Pay Day in 2020 as a call for action for organisations, businesses and governments to close the gender pay gap.

The gender pay gap is the difference between what a woman earns compared to a man, for work of equal value. The UN recognised that women on average tend to earn less than men due to gender stereotypes, institutional barriers and lack of opportunities.

Equal pay laws alone are not leading to gender parity regarding pay, so the UN chief called for greater effort to find solutions:

“We need to ask why women are relegated to lower-paid work; why professions that are female-dominated have lower salaries – including jobs in the care sector; why so many women work part-time; why women see their wages decrease with motherhood while men with children often enjoy a salary boost; and why women hit a ceiling in higher-earning professions.”

We also see familiar trends with Global Majority groups and the disabled community, which contributes to inequality. Inequality hurts everyone because it negatively impacts economic growth, prevents economic and social mobility and prevents people from attaining new skills. This is why employers should do pay gap reports, so we can know which areas we need to improve in and use that data to make informed decisions to address pay inequality.

Facts you should know

Here are a few quick International Equal Pay Day facts to know:

• It was started on 18 September 2020.
• It was founded by the UN.
• In the UK organisations with over 250 employees are legally obligated to report on their gender pay gap data every year. Smaller organisations can voluntarily take part in pay gap reporting to show their commitment to equality.
• In the UK there is currently no legal requirement for employers to report on Ethnicity or Disability pay gaps, but this may change in the near future.