Will the pay rise for women close the gender gap?

As well-known as it is, women are usually less well paid compared to men and that is normally because of their different job roles.

Research has offered the conclusion that almost 3 in 10 women employees will gain a pay rise by 2020, what seems to be ‘owed’ by the new National Living Wage.

The research from the Resolution Foundation report has also suggested that most of the women employees will see a benefit and gain with the pay rise. The rest will still benefit but, it will be a “ripple effect” which means 6 million workers in total will gain a pay rise because of the rise in the next ten years. During the same, time 2.3 million male employees will also see a benefit from the pay increase.

Conor D’Arcy, the Think Tanks policy analyst said “because of their concentration among the low paid, women will account for the majority of the winners, this will have a positive though modest effect on the gender pay gap and will particularly help those working part-time.”

The results from George Osbourne’s announcement means the women who are 25 and above who are experiencing low income will receive 61% of the benefits from the new National Minimum Wage.

Sam Smether’s, a member of the UK’s leading charity on gender equality and women’s rights Fawcett Society, has said that “it is a stark reminder of the segregation between men and women that still exists in the workforce, with women concentrated at the bottom and men at the top.

‘We know that women are significantly more likely to work part-time than men with many doing several low-paid, part-time jobs and these are the people most likely to benefit.

‘As a result, the increase in the National Living Wage should have a small positive impact on the gender pay gap and on the part-time pay gap in particular, but we still have a long way to go before we begin to close it in any significant way.”

Overall, the Regional effect shows that the National Minimum Wage will increase from £6.50 to £7.20 per hour – unfortunately this only applies to those who are 25 and older. In October, those who are under the restricted age will still receive a pay rise, again from £6.50 but the increase will only rise by 20p, to £6.70.

However, small businesses fear that the new pay rise could be difficult, which might lead to laying staff off or generally cutting back on recruitment and little luxuries in the office. The office for Budget Responsibility has made a prediction that there will be 60,000 fewer people in employment.

Head of Businesscomparison, Philip Brennan says that “with the increase in National living wage we hope, that it will have a positive effect on many lives. However, initially it looks to be potentially inflationary as a majority of businesses have warned that they will increase prices to try and protect their margin. Also, this could lead to products being less competitive abroad. This said people need to be protected and given a fair wage, and currently this is the only solution to pay equality currently in practice.”