Gender pay gap could cost women GBP £93,400 in a lifetime

Half of all employees are dissatisfied with their pay, with recent research highlighting that the gender pay gap could cost women upwards of GBP £93,400 over a 40-year career.

According to figures compiled by Instant Offices, salary increases tend to follow career progression, peaking in mid-career years, but discrepancies between male and female earnings grow markedly as employees age.

Pay progression

In 2024, the average median annual salary for full-time employees in the United Kingdom stood at approximately GBP £37,430, an increase of GBP £2,467 from the previous year. For graduates joining the workforce in 2025, the average starting salary is anticipated to be GBP £31,000, ranging from GBP £23,000 to GBP £43,000 depending on sector and location.

Salaries tend to rise steeply in the earlier stages of a career, with a significant jump of GBP £7,696 as employees move from the 22–29 age bracket into their thirties. The average annual salary by age group is as follows: 18–21, GBP £24,440; 22–29, GBP £32,292; 30–39, GBP £39,988; 40–49, GBP £42,796; 50–59, GBP £40,456; 60+, GBP £36,036.

Gender pay gap widens with age

While average salary growth occurs across the workforce, a gendered breakdown reveals widening disparities throughout employees' careers. The UK's average gender pay gap stands at 9%, and this disparity grows progressively with age and experience.

At the entry level (ages 18–21), men earn, on average, £520 more per year than women. This pay gap increases steadily through the decade, with men in their thirties earning GBP £1,664 more than female peers annually, and by the 40–49 age bracket - the peak earning years for most employees - the gap has expanded to GBP £2,756 annually.

For those aged 50–59, men earn GBP £3,484 more than women each year, with the cumulative impact growing more pronounced over the course of a career. The research calculates the following progression of disparities:

• 18–21: GBP £2,080 cumulative shortfall
• 22–29: GBP £9,152 cumulative shortfall
• 30–39: GBP £25,792 cumulative shortfall
• 40–49: GBP £53,352 cumulative shortfall
• 50–59: GBP £88,192 cumulative shortfall
• 60–61: GBP £93,392 cumulative shortfall

This calculation accounts only for baseline average annual income, not incorporating salary-based bonuses, pension contributions, or potential investment from savings. Factoring these in, women's lifetime financial shortfall as a result of the gender pay gap would likely exceed GBP £100,000.

Strategies for closing the gap

The research points to several practical measures employers can implement to address the pay gap:

• Conduct pay audits: Regular salary reviews can identify disparities early and enable corrective action.
• Implement transparent salary bands: Clearly defined pay ranges for roles can help reduce bias and support fair career progression.
• Support women's career development: Encouraging promotions, leadership opportunities, and providing mentorship can level the progression field.
• Flexible working and parental support: Offering flexible and remote working arrangements, in addition to strong parental leave policies, can help women sustain career momentum amid domestic responsibilities.
• Unbiased recruitment and promotions: Structured evaluations, objective performance criteria, and diverse recruitment panels can tackle systemic bias.
• Equal access to training: Opportunities for upskilling and professional development should be available to all employees equally to help bridge the long-term earnings gap.

The data emphasises that, while the gender pay gap starts relatively small, it accumulates with each stage of career progression, leaving women significantly worse off both during their working lives and into retirement. The findings underscore the importance of sustained effort and systematic change in pay practices and workplace culture to address career-long inequality.