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Gender wage gap decreases by 43% in Greater Boston, but it’s complicated
Meanwhile, the racial wage gap widened for the second consecutive cycle.
The Boston Women’s Workforce Council announced on Wednesday that the gender wage gap in Greater Boston decreased by 43% this year, although women’s salaries stayed basically the same. Meanwhile, the racial wage gap widened.
The average gender wage gap in Greater Boston in 2025 was 12 cents, down from 21 cents in 2023, and the racial wage gap grew to 31 cents from 27 cents in 2023.
Although the gender wage gap decreased, it did so in part because men’s salaries decreased from 2023 while women’s salaries remained the same.
However, the decrease is also partially due to women advancing in C-suite and senior executive positions, the report says.
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“We are encouraged to see the gender wage gap continuing to close,” Executive Director of the BWWC Kim Borman wrote in a statement. “The dramatic increase in women’s representation in executive leadership, up 7% in just two years, shows that when organizations commit to advancing women into positions of power and higher pay, real change happens.”
“However, the persistent disparity suggests that we still have significant work to do to ensure women receive equal compensation for equal work,” Borman continued.
However, when performance pay — bonuses, commissions, profit-sharing, merit-based raises, etc. — is taken into consideration, the gender wage gap widens to 18 cents, men earning more than twice as much in performance pay as women, the report says.
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The racial wage gap increased for the second consecutive cycle because racial and ethnic minorities remain overrepresented in low-paying jobs, while white employees dominate managerial and executive roles, the report says.
“The widening racial wage gap demands our urgent attention,” said Borman. “While we celebrate progress on gender equity, we cannot ignore that Employees of Color, particularly Black and Hispanic workers, are falling further behind.”
When factoring in performance pay, white employees earn two times more than employees of color on average, the report says.
In executive positions, employees of color typically earn $180,440 compared to white employees earning $336,708, the report says.
Overall, Black men earn less than women of any racial group and considerably less than white men, the report says.
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“Closing the wage gaps in Boston isn’t just the right thing to do. It’s a competitive advantage,” Borman said. “Boston is a hub of incredible talent due to its profusion of amazing colleges and universities. If we want to keep that talent here and attract the best from everywhere else, we need to show we value all employees equally.”
Mayor Michelle Wu wrote a statement in the report. “Closing wage gaps is a complex task — one that requires changing policy and changing culture. … This year’s report demonstrates just how far we’ve come — and how much further
we still have to go,” she said.
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The BWWC report is based on employer payroll statements for industries with five or more companies. The wage gaps are calculated by dividing the average compensation of the interest group by the average compensation of the comparison group.
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