Gains Gone? Payscale Study Notes a Widening U.S. Gender Pay Gap

Progress toward gender pay equity in the United States appears to be in stuck in a rut and, perhaps, retreating. Research released March 24 by Payscale found the uncontrolled gender pay gap is widening, erasing past gains toward equal compensation.

The compensation software and data company’s 2026 Gender Pay Gap Report (GPGR) revealed women now earn $0.82 for every dollar earned by men, a decline from $0.83 in 2025. This gap translates to a median loss of $14,300 per year for women, which compounds to more than $1 million in lost earnings over a typical 40-year career.

The new report mirrored some of the trends in a Sept. 9, 2025, U.S. Census Bureau report that showed the gender pay gap had a “statistically significant” widening for the second year in a row (and the second time in 21 years).

Definitions, for Context

The Payscale report lists findings using “uncontrolled” and “controlled” qualifiers. What do these terms mean?

A Trillion-Dollar Economic Challenge

Considering there are approximately 80 million women in the U.S. workforce, Payscale’s study found the uncontrolled pay gap represents an annual loss of $1.1 trillion to the economy. Over the course of these workers’ lifetimes, the cumulative loss is estimated at a staggering $86.4 trillion.

“Pay transparency is both a workforce engagement and compliance imperative,” said Payscale chief compensation strategist Ruth Thomas. “When pay gaps persist or widen, women are more likely to disengage, change jobs or leave roles altogether, shrinking the available talent pool and increasing turnover costs for employers. At the same time, inconsistent or unjustified pay practices expose organizations to growing legal and reputational risk. Transparent, data‑driven pay structures are now essential to building equitable workplaces where all employees can thrive and staying competitive.”

Education and Seniority Provide Little Protection

Payscale’s analysis identified that higher education does not eliminate the current pay disparities. The gap persists at every level, with women holding master’s degrees — such as a Master of Business Administration, or MBA — still earning significantly less than their male counterparts. In fact, women with MBAs face one of the widest uncontrolled gaps, earning just $0.78 for every dollar earned by men with the same degree.

The disparity further intensifies as women progress in their careers:

• Women age 45 and older earn just $0.71 (on an uncontrolled basis) for every dollar earned by men.
• Women executives earn $0.69 (uncontrolled) for every dollar earned by male executives, a decline from $0.72 in the previous year.

Payscale said these year-over-year declines may reflect the cumulative effects of slower career progression, caregiving penalties and less consistent access to leadership roles.

The Role of Pay Transparency

The report emphasized that while transparency laws are being enacted in more jurisdictions (both in the U.S. and abroad), they are not a “quick fix.” While nine U.S. states* with transparency laws saw a narrowing of the “controlled” gap (comparing similar work), six states did not, illustrating the need for continuous monitoring rather than simple “check-the-box” compliance.

When data is controlled for factors like job title and years of experience, Payscale found women earn $0.99 for every dollar men earn — a figure that has remained unchanged for five years, indicating that even when doing the same work, women are still frequently paid less.

“Transparency works when it’s treated as a business process, not a checkbox,” said Lulu Seikaly, Payscale’s senior employment counsel. “For example, extremely wide pay ranges may comply with the letter of the law but not the spirit and are not viewed favorably by job candidates. With expanding state laws and new global requirements like the [European Union] Pay Transparency Directive, employers should actively monitor, document, justify and communicate pay decisions — or risk falling out of compliance.”

Editor’s Note: Additional Content

For more information and resources related to this article, see the pages below, which offer quick access to all WorldatWork content on these topics:

• Employee Compensation
• Equitable and Diverse Workplaces
• Total Rewards