Women’s Earnings Are Being Hit with ‘Menopause Penalty’

The motherhood penalty — a term that refers to the economic disadvantages that women with children experience in the workplace — is well-documented. So is the overall gender pay gap, as research reveals that in the U.S., female workers on average make 83 cents on the dollar compared to their male counterparts.

But there’s another experience that’s also hurting female employees’ wage potential: menopause. 

Over the four years following a menopause diagnosis, women experience a 4.3% reduction in earnings, with losses rising to 10% by the fourth year, according to new research from economists at University College London, the University of Bergen in Norway, Stanford University, and the University of Delaware. Researchers analyzed populationwide data from Sweden and Norway, but said the data is translatable to the U.S. and beyond. The data included medical records that identified the date of the first menopause diagnosis of women born between 1961 and 1968 who had a menopause-related diagnosis between the ages of 45 and 55.  

The earnings decline experienced by women during menopause was primarily driven by a decrease in the likelihood of working and a reduction in contracted hours worked, the researchers found. Menopause symptoms are wide-ranging and include hot flashes, fatigue, brain fog, and joint pain.

Researchers dubbed the phenomenon the “menopause penalty” and said it’s a call to action for workplaces.

“Our findings suggest that better information and improved access to menopause-related care are crucial to eliminating the menopause penalty and ensuring that workplaces can better support women during this transition,” said Gabriella Conti, lead author of the study. The researchers called for more available information about menopause and for women going through menopause to have better access to appropriate care.

“I don’t believe that organizational leaders understand the financial impact of neglecting support for this cohort,” said Maria Trapenasso, SHRM-SCP, senior vice president and head of human capital solutions at NFP, a New York City-based global benefits consultant and property and casualty insurance broker. According to NFP research, roughly 1 billion people worldwide are experiencing menopause.

Workplace Support

With more research coming out about the effects of menopause in the workplace, it’s no wonder menopause support is a growing benefit trend, with experts saying it’s one of the top benefits to watch in the coming year.  

Companies such as Microsoft and pharmaceutical firm Sanofi are among a small but growing cache of employers offering menopause benefits or support to workers. Benefits include counseling and education, hormone therapy, physical therapy for pelvic-floor issues, access to specialists in menopause care, and menopause-specific paid leave.

In 2024, SHRM included menopause-specific support in its annual Employee Benefits Survey for the first time since the survey was started in 1996. The SHRM data found that 17% of employers provide menopause support, such as counseling and education, and 2% offer menopause or menstrual leave above what is already covered by regular sick time.

“With things like menopause, I think it’s becoming more a part of the conversation,” Daniel Stunes, manager of data monetization with SHRM Data and Insights, said last year. “The more comfortable people are talking about it, the more businesses hear about it. And the more businesses hear about it, the more they realize, ‘Maybe we should do something about that.’ ”

Verlinda DiMarino, head of benefits at Liberty Mutual Insurance, said it’s important that HR and benefits leaders address topics that were once considered taboo in the workplace — including menopause. “As we continue to evaluate the ways we can support employees holistically, it’s important that we provide the tools, resources, and community they need to succeed and bring their full selves to work,” she said.