Pay gaps between genders don’t exist in the military. Because a servicemember’s base pay is based on 1) pay grade and 2) time in service, everyone in those two same determining factors gets paid the same … regardless of gender. However, once out and in the civilian workplace, the reality of gender pay gap becomes real. If you are a woman and are considering separating from the military, the gender pay gap information in this article – and especially the factors affecting it – may help you create an employment plan that will minimize its effect on you once out.
Salary and Pay Gap
The good news is that the pay of employed veterans of both genders has been on the rise since the year 2000. During those last two decades, according to recent reports on post military pay, it has risen overall from $38,420 to $70,320. What is interesting to note is the two industries employing the fewest veterans – resource extraction and utilities – pay the most: $108,080 and $79,740, respectively. Finance/Insurance, and Professional, Scientific and Technical Services round out the top four highest pay industries.
While the salaries of both genders have risen over the last two decades, the pay gap has also widened between the two. In the year 2000, men averaged $38,970 per year, while women earned a much lower amount at $27,300 – almost a third less. As of last year, the figures had increased to $72,390 for men and $56,170 for women. So while the gap was $11,670 between the two genders in the year 2000, it had increased to $16,220 as of last year – a difference of $4,550.
Gender Pay Gap Varies According to the Type of Industry
While there are several factors affecting gender pay gap as we will see in this article, one factor is the industry employed. Of the top 10 highest veteran employed industries, the largest gap was in mining and quarrying, and the oil and gas extraction sectors – typically male-oriented industries. On average, men made $57,480 more than their female counterparts. The industry with the smallest gap is real estate, rental and leasing, where men made only $2,150 more than women employed in this field. However, it is important to note that this industry is also more evenly divided when it comes to male-female employed ratios. The next two industries having the smallest gender pay gaps are:
- Public Administration – $8,590
- Manufacturing – $11,970
Gender Gap Varies According to the Location
Another factor affecting pay gap based on gender is where a person works. While every state, except Mississippi, has some type of pay equality protections on their books, those protections cover a wide range. For example, some state gender pay protections only apply to public workers. Others prevent employers from using previous pay as a basis for new hire pay. The state with the least pay gap is Vermont where women in general earn 91 cents for each male-earned dollar; Wyoming has the largest pay gap where women earn only 65 cents for each male-earned dollar. Overall, based on location, women are paid 82% of what men earn resulting in an 18% pay gap.
The Pandemic Effect
Last year added a new factor into the gender pay mix. Due to the pandemic, and resulting closure of in-person school learning, 2.2 million women chose to leave the workforce to stay home with their children. Economists predict this will have some long-term negative effects on the gender pay gap issue, so some ground that had in fact been gained may now be lost. To what extent and for how long remains unknown at this time.
For female servicemembers considering separation from military service, it is important to be aware that gender pay gaps exist in the civilian world that do not in the military. As we have seen, the industry and location affect how much women earn for similar work when compared to men. So make sure you go into salary negotiations armed with data.
For some women, it is not how much they earn, that matters, but where the work is located (being close to family is common); for others, it is doing the work they have always dreamed of doing; still for others, how much they earn is their primary driving force, so for them, all factors affecting pay must be considered. The important thing is to have a post separation/transition employment plan that works for you and then work your plan.
