The Gender Pay Gap in 2025 – Why Women Are Still Earning Less & How to Negotiate Higher Pay
- Shane Smith
- Mar 7
- 7 min read
More Job Opportunities, Same Unequal Pay
In 2025, more women are advancing in their careers, taking on leadership roles, and entering traditionally male-dominated industries. Yet, despite these gains, the gender pay gap remains a persistent issue. Women continue to earn less than their male counterparts for the same work, and this wage disparity is even wider for women of color.
The pay gap isn’t just about numbers—it affects financial independence, retirement savings, and long-term career growth. For women looking to increase their earning potential, salary negotiation is one of the most powerful tools available.
In this article, we’ll explore why the gender pay gap still exists, which industries are most affected, and actionable strategies women can use to negotiate higher salaries.
Why Does the Gender Pay Gap Still Exist?
Persistent Barriers Keeping Women’s Pay Lower
The gender pay gap is influenced by a variety of factors, from bias in salary negotiations to occupational segregation. Systemic issues such as lack of pay transparency, differences in career progression opportunities, and societal expectations around caregiving further contribute to the disparity.
Women are more likely to work in lower-paying industries and roles that have historically been undervalued, such as education, healthcare, and social services, while men dominate higher-paying fields like technology and finance. Even within the same occupation, studies show that men are more likely to receive promotions and pay raises at a faster rate than their female colleagues.
The motherhood penalty also plays a role—women who take maternity leave or work flexible hours often face unconscious bias, leading to slower career growth and lower lifetime earnings. Some of the key reasons include:
Occupational Segregation: Women remain underrepresented in high-paying fields like technology, finance, and engineering, while they are overrepresented in lower-paying industries like education, social work, and hospitality.
Bias in Salary Negotiation: Research shows that women who negotiate salaries are more likely to face backlash compared to men, which discourages them from asking for higher pay.
Career Interruptions: Women are more likely to take time off for caregiving responsibilities, leading to gaps in work experience and slower wage growth over time.
Lack of Salary Transparency: Many companies still do not disclose salary ranges, making it difficult for women to know if they’re being underpaid.
The Numbers Don’t Lie: A Look at the Gender Pay Gap
According to NPR, women still earn about 84 cents for every $1 earned by men on average. However, the gap is even wider for Black and Latina women, who earn significantly less compared to white men.
Additionally, a Harvard Business Review study found that “women who asked [for a raise] obtained a raise 15% of the time, while men obtained a pay increase 20% of the time. While that may sound like a modest difference, over a lifetime it really adds up.”
Without changes in workplace policies and salary structures, closing the pay gap will continue to be a slow process.
Which Industries Have the Largest Pay Gaps?
Not all industries are affected by the gender pay gap in the same way. While some fields have made progress toward pay equality, others still see significant disparities. Industries that have clear, standardized pay structures—such as government, unionized workplaces, and some corporate sectors—tend to have smaller gaps, as salaries are often based on experience and position rather than subjective negotiations.
However, male-dominated industries such as tech, finance, and engineering still exhibit notable wage gaps, with women often earning significantly less than their male counterparts in the same roles. The disparity is even wider for women of color, LGBTQ+ women, and those with disabilities, further emphasizing the intersectionality of the wage gap.
Conversely, fields with a higher concentration of women, such as nursing and education, also face challenges, with wages being systematically lower compared to male-dominated industries, despite the increasing demand for these professions.
Industries Where Women Earn Less Than Men
Technology & Engineering: Women in tech roles earn 15-20% less than men in similar positions.
Finance & Investments: Women in finance make 74 cents for every $1 earned by men.
Healthcare & Medicine: According to Fierce Healthcare, in 2022, “women in primary care earned 19% less than male physicians.”
Education & Nonprofits: Women dominate these fields but often earn less than men in leadership roles.
Industries That Have Improved Pay Equality
Some sectors have made notable progress in reducing the gender pay gap:
Government & Public Sector: Structured pay scales limit wage disparities.
Legal & Consulting Firms: More firms are standardizing pay bands to ensure equal pay.
Entrepreneurship & Freelancing: Women who start their own businesses are setting their own rates, leading to better earnings.
Understanding these trends can help women make informed career choices and identify industries where negotiation can have the greatest impact.
How Women Can Negotiate for Higher Pay
First, Why Salary Negotiation Matters
Many women avoid negotiating their salaries out of fear of rejection or because they assume the initial offer is fixed. However, research shows that failing to negotiate can cost women up to $1 million in lost earnings over a lifetime. One key reason for this hesitation is the lack of salary transparency in many workplaces, which makes it difficult to gauge what a fair offer should be.
Additionally, cultural and societal expectations often discourage women from advocating for themselves in financial matters, reinforcing the idea that they should be grateful for the opportunity rather than pushing for higher pay.
Studies have also shown that women are less likely than men to receive encouragement from mentors or employers to negotiate their salaries, further perpetuating the cycle of lower earnings. However, when women do negotiate properly, they tend to be just as successful as men—highlighting the importance of education and confidence in the negotiation process.
Step-by-Step Guide to Negotiating Higher Pay
1. Do Your Salary Research Before the Interview
Use platforms like Glassdoor, Payscale, and LinkedIn Salary Insights to determine salary ranges for your role.
If asked about salary expectations early on, redirect the question by asking:
"Can you share the salary range for this position?"
"I’d love to learn more about the role before discussing numbers, but I’m open to a competitive offer based on market rates."
2. Frame Your Negotiation Strategically
Instead of just asking for a higher salary, frame it as a business case:
Instead of: "Can you offer more?" → Say: "Based on industry benchmarks and my experience, a salary of [$X] would be more aligned with market value."
Instead of: "I need a raise" → Say: "Since my last salary review, I have contributed X, Y, and Z. Based on my impact and market research, I’d like to discuss a compensation adjustment."
3. Don’t Just Negotiate Salary—Look at the Whole Package
If an employer won’t budge on salary, consider negotiating other benefits, such as:
Performance bonuses
Stock options
Professional development funds
Remote work flexibility
Extra vacation time
4. Always Counter the First Offer
Employers expect candidates to negotiate, and the first offer is rarely the highest offer available.
Use phrases like: "I appreciate the offer. Based on my research and experience, I’d like to explore a salary of [$X]. Is there room for flexibility?"
Overcoming Gender Bias in Negotiation
Women often face unique challenges when negotiating salary. Studies show that women who negotiate assertively are more likely to be perceived as “demanding,” while men doing the same are seen as “strong leaders.” This phenomenon, known as the backlash effect, stems from deeply ingrained gender stereotypes that associate assertiveness with masculinity.
Women who push for higher salaries may face resistance, not because they lack qualifications, but because their assertiveness contradicts societal expectations of women being collaborative, accommodating, or nurturing. This bias can lead to negative professional consequences, including damaged workplace relationships or being passed over for promotions.
To navigate this, many experts recommend using communal negotiation strategies, where women frame their salary requests as benefiting the company, the team, or the broader mission, rather than just themselves. By striking a balance between assertiveness and approachability, women can increase their chances of successful negotiations without triggering bias.
How to Navigate Bias & Advocate for Yourself
✔ Use Data-Driven Justifications – Always back up requests with salary research and concrete accomplishments.
✔ Choose the Right Timing – Negotiate after a major project win or during performance reviews.
✔ Practice Negotiation Techniques – Role-playing with a mentor or coach can increase confidence and refine negotiation strategies.
Moving Forward: What Women Can Do to Keep Closing the Pay Gap
Since policies are slow to evolve, women must continue to advocate for themselves to accelerate progress. Many countries and companies have introduced policies such as pay transparency laws, mandatory salary audits, and expanded parental leave to help close the gender pay gap. However, real change often depends on individuals actively pushing for accountability and fair compensation in their own workplaces.
Women can benefit from networking with peers in their industry to compare salaries, seeking mentorship from those who have successfully navigated pay negotiations, and staying informed about their rights. Additionally, advocating for systemic changes—such as supporting policies that require companies to disclose salary ranges in job postings—can help create a more equitable playing field for future generations.
Talk About Salaries Openly – Share salary data with peers to identify pay gaps and hold employers accountable.
Invest in Skills & Certifications – Expanding skills in STEM, AI, Finance, and Leadership can lead to higher-paying opportunities.
Join Women’s Career Networks – Platforms like Ellevate Network and Lean In Circles provide mentorship and salary negotiation resources.
Conclusion: Take Control of Your Earning Potential
The gender pay gap won’t disappear overnight, but women can take strategic steps to ensure they receive the pay they deserve. Negotiation is a skill that improves with practice, and every step toward closing the gap counts. By doing thorough salary research, preparing strong cases for their contributions, and leveraging industry benchmarks, women can increase their negotiating power.
In addition, engaging in professional development, such as salary negotiation workshops or leadership training, can also build confidence and equip women with the tools needed to advocate for themselves effectively.
While individual efforts are crucial, collective action—such as pushing for workplace policies that promote equal pay and supporting legislation aimed at closing wage gaps—remains essential for long-term change. Each successful negotiation not only benefits the individual but also sets a precedent for others, helping to shift workplace norms and expectations.
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