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Wage EquityData Release· 3 min read· in Careers & Work

Global Gender Pay Gap Narrows by 2% in a Decade, Leaving Women Earning 18% Less

A new International Labour Organization report reveals that the global gender pay gap has closed by only two percentage points since 2018. The agency is calling for structural reforms and pay transparency as women continue to earn 18% less than men on average.

By Madison Lane

Labor Regulators 60%Labor Advocates 40%
Labor Regulators
Advocates for systemic policy changes and international standards to enforce equal pay.
Labor Advocates
Focuses on the immediate economic impact of wage disparities on workers.

Perspectives this story doesn't cover

  • Private sector employers
  • Independent labor economists

How we got here

  1. 2017

    The Equal Pay International Coalition is launched by the ILO, UN Women, and the OECD.

  2. 2018

    The ILO releases its previous global estimates on the gender pay gap.

  3. September 2026

    New data reveals the gap has narrowed by only two percentage points over the decade.

Why it matters

For professionals negotiating salaries, this data underscores that systemic undervaluation persists regardless of educational attainment. Understanding these structural barriers allows workers to demand objective, gender-neutral job evaluations and stronger pay transparency during compensation discussions.

The global gender pay gap has narrowed by exactly two percentage points over the last decade, leaving women earning an average of 18% less than men worldwide. The International Labour Organization (ILO) released these estimates in September 2026, demonstrating that higher educational attainment among female professionals has failed to eliminate the persistent wage disparity.[1][2]

The 18% shortfall translates directly into reduced economic independence, lower lifetime savings, and diminished pension accumulations for female workers across all income brackets. ILO Director-General Gilbert F. Houngbo stated that the current trajectory is inadequate, urging governments and employers to implement structural reforms rather than relying on individual salary negotiations to close the divide. "A reduction of just two percentage points in ten years is simply not enough," Houngbo said during an address in Dublin.[1][2]

The disparity is not solely the result of men and women receiving different pay for identical roles. The gap is driven by occupational segregation, the unequal distribution of care responsibilities, and the systemic undervaluation of work predominantly performed by women. According to the ILO's Equal Remuneration Convention (No. 100), achieving equity requires evaluating how society compensates different sectors, particularly informal work and caregiving.[1][3]

Progress has varied significantly by region and income level since the last global estimates were published in 2018. High-income countries recorded a 2.5 percentage point reduction in their gender pay gaps over the period. Meanwhile, lower-middle-income nations saw a two-point drop, and upper-middle-income countries managed only a one-point improvement, highlighting the uneven nature of the recovery.[1]

High-income countries saw the largest reduction in the gender pay gap, while upper-middle-income nations lagged behind.
Progress has varied significantly by region and income level since the last global estimates were published in 2018.

To accelerate the closure of the gap, the Equal Pay International Coalition (EPIC)—a partnership launched in 2017 by the ILO, UN Women, and the OECD—convened in Dublin on September 18, 2026. The coalition brought together more than 80 member organizations to outline concrete policy actions, pushing for stronger pay transparency laws and objective job evaluation frameworks.[1][3]

The transition toward green and digital economies presents a critical window to reset compensation standards. The ILO noted that as new industries and occupations emerge, employers have an opportunity to establish equitable pay structures from the outset, provided they actively dismantle existing biases and stereotypes in hiring and leadership pipelines.[1]

The United Nations Regional Information Centre (UNRIC) echoed the call for systemic changes, noting that equal pay is a fundamental right and an imperative for social justice. The agency emphasized that multilateral cooperation and collective bargaining are essential tools for ensuring that women's work is valued fairly and that opportunities are distributed equally across the labor market.[3]

For individual workers, the ILO's findings highlight the limitations of relying solely on personal negotiation tactics to overcome systemic deficits. The organization is now directing its member states to implement the transformative agenda for gender equality adopted at the 2026 International Labour Conference, shifting the burden of equity enforcement from the employee to national regulatory bodies.[1][2][3]

What to know

  • The global gender pay gap has narrowed by only two percentage points over the past decade.
  • Women worldwide continue to earn an average of 18% less than men.
  • High-income countries saw the largest improvement, reducing their pay gaps by 2.5 percentage points.
  • The ILO attributes the persistent gap to occupational segregation and the undervaluation of care work.
  • Regulators are calling for stronger pay transparency laws and collective bargaining to address the disparity.

Where opinion splits

International Labor Regulators

Multilateral organizations advocating for structural reforms and pay transparency.

Agencies like the ILO and UN Women argue that the gender pay gap is a systemic issue rooted in the undervaluation of female-dominated professions and unequal care responsibilities. They contend that individual salary negotiations are insufficient to close the 18% gap, pushing instead for national pay transparency legislation, objective job evaluation frameworks, and the expansion of collective bargaining rights to enforce equal pay for work of equal value.

Corporate Employers

Private sector organizations navigating new compliance and transparency mandates.

While many large employers have publicly committed to gender equity, they often face challenges in standardizing compensation across diverse global operations. Companies point to the complexities of adjusting legacy wage structures and the costs associated with comprehensive pay audits. However, as more jurisdictions mandate pay transparency, employers are increasingly required to adopt gender-neutral job classifications and disclose salary ranges to remain compliant and competitive in talent acquisition.

Sources

Source coverage

3 outlets

2 viewpoints surfaced

Labor Regulators 60%Labor Advocates 40%
  1. [1]International Labour OrganizationLabor Regulators

    The gender pay gap narrows by just two percentage points in a decade

    Read on International Labour Organization →
  2. [2]DevdiscourseLabor Advocates

    Women Earn 18% Less as ILO Chief Calls for Urgent Action to Close the Gender Pay Gap

    Read on Devdiscourse →
  3. [3]UNRICLabor Regulators

    Closing the gender pay gap is critical to advance social justice

    Read on UNRIC →

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