Gender pay gap – just got bigger

The good news first:  The pay gap between male and female accountants under 30 appears to be narrowing, now the bad news: the opposite is the case for those over 45s.  The latest Career Benchmarking Study by the ICAEW found that average salary for female accountants under 30 is £47,300 (a 3% increase on last year).  The average male salary for the same age group was £49,300 (that is 4% higher than the female equivalent, but a 5% decrease from the previous year).  According to the ICAEW study the average basic salary for male chartered accountants over 45 is £98,400.  This is a massive 60% more than their female colleagues who average just £60,500.  The huge difference in pay between men and women over 45 seems to have been exacerbated in the past year because of 10% reported drop in salaries for women aged 46-55.  The same age group in men reported just a 1% drop in their pay packets.  English Institute chief executive Michael Izza said: “Our studies show that to attract and retain female talent it is vital employers meet employee expectations regarding career progression and work-life balance.”  However, he didn’t attempt to explain the reasons why the gap is so huge, or growing!  The global economic downturn had a noticeable effect on salaries at all career stages for both men and women, with 60% of respondents saying the downturn had a negative effect on their basic remuneration.  Some two-thirds of accountants also said their bonus was down ort had disappeared altogether.

PQ Magazine
22/3/2010