Women's Severance Pay Lags Behind Men's—Except in These Surprising Industries
A new analysis reveals a persistent gap in severance pay between men and women, despite some industries bucking the trend. On average, women received 4.6% less severance than men in 2025. Yet in sectors like education, chemicals, and insurance, women actually secured significantly higher payouts than their male counterparts.
The overall pay gap between genders remains at 23% across industries, though this narrows to 15% when comparing similar job levels. But severance tells a different story. In education, women's severance packages were 75% higher than men's, while in chemicals and insurance, they were 27.6% and 22.5% higher respectively.
Experts warn that unequal severance practices can damage trust, expose companies to legal risks, and weaken diversity commitments. Organisations that actively review their severance data by gender have seen improvements in staff retention, morale, and employer reputation—particularly among women in leadership roles.
HR professionals can address the issue by benchmarking, auditing, and adjusting severance policies based on gender and seniority. However, no documented actions by companies in education, chemicals, or insurance have been taken in the last three years to explain or manage these gender-specific differences.
The findings highlight that severance equity goes beyond legal compliance—it reflects an organisation's culture. While some industries show a reversed gap, the broader trend still favours men. Companies that proactively analyse and adjust their severance policies stand to benefit from stronger workplace trust and a more inclusive reputation.
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