The LGBTQ+ pay gap: causes, data, and what employers can do

A data-driven look at pay disparities affecting LGBTQ+ employees and how to close them.

What is the LGBTQ+ pay gap?

The LGBTQ+ pay gap is the difference in average earnings between LGBTQ+ employees and their non-LGBTQ+ peers. A 2021 analysis by the Williams Institute found that LGBTQ+ workers in the US earn approximately 10% less than non-LGBTQ+ workers with equivalent qualifications. In the UK, the ONS found that gay and bisexual men earn on average 16% less than heterosexual men.

Why does the LGBTQ+ pay gap exist?

The gap is not primarily explained by differences in qualifications. Research identifies several structural causes: discrimination in hiring and promotion; covering and concealment; under-representation in senior roles; limited access to sponsorship; and intersectional penalties for LGBTQ+ people of colour and trans workers.

What is the pay gap for trans workers?

Trans workers face the most severe pay gap. The UK Government Equalities Office found that trans workers earn 32% less than cisgender workers on average.

What can employers do to close the LGBTQ+ pay gap?

1. Collect voluntary self-identification data. Employers cannot measure what they do not track. Voluntary, confidential self-ID data collection is the foundation of any pay equity analysis.

2. Conduct a pay equity audit. Compare earnings of LGBTQ+ and non-LGBTQ+ employees at equivalent levels.

3. Audit promotion and progression. Structured promotion processes with defined criteria and diverse panels reduce the scope for subjective bias.

4. Invest in mentoring and sponsorship. Mentoring programmes connecting LGBTQ+ employees with influential advocates directly address the sponsorship gap.

5. Address pay transparency. Publishing salary bands reduces the scope for discriminatory pay decisions.

Frequently asked questions

Is there an LGBTQ+ pay gap in the UK? Yes. UK data shows gay and bisexual men earn on average 16% less than heterosexual men. Trans workers face a gap of approximately 32%.

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