We are all acutely aware of the Gender Pay Gap with regular news updates and the forthcoming gender pay reporting obligations. However, a new study by the IFS reveals that women who become mothers are further disadvantaged in the workplace - paying what is being called the "mummy tax" - part-time working, lower pay, missed promotions and reduced opportunities for experience.
The IFS report indicates that whilst women choosing to go part-time doesn't cut pay immediately (other than pro-rata) the gender pay gap is steadily widened following motherhood and they lose out on later wage progression. It remains to be seen whether the new provisions on gender pay reporting will tackle these wage discrepancies.
The gap between hourly earnings of the two sexes becomes steadily wider after women become mothers, the IFS says. Over the subsequent 12 years, women's hourly pay rate falls 33% behind men's. The IFS says this is partly because women who return to work often do so in a part-time capacity and miss out on opportunities for promotion.