No, the “Pink Tax” is not something that is government levied. It’s not the kind of “tax”. It is a markup of services and goods charged to women when compared to comparable services and goods paid for (and purchased by) men. To bring attention to this phenomenon, a campaign was launched by Burger King. For a pink box of French fries, more was charged than for a normal box – but both boxes contained exactly the same portion of fries. Is your business using pricing that is gender-neutral? In fact, is your payroll department practicing neutral policies when it comes to how much men and women get paid?
Pink Tax Rates
Is “Pink Tax” really a thing? Is it truly a problem? A study was done in New York involving gender pricing and came up with some disturbing findings. On the average, when compared to similar products for men, women’s products cost approximately 7% more. Here’s just a handful of examples:
- For home or senior healthcare products – 8% more
- For personal care products (such as razors) – 13% more
- For adult clothing – 8% more
- For plus-size clothing – men do not pay more, whereas, women do
- For children’s clothing – 4% more
- For toys and accessories – 7% more
In addition, 18% of the time, men’s products cost more than women’s. But over 42% of the time, women’s products cost more than men’s.
Shouldn’t There Be Some Regulations?
Currently on point, there are no federal regulations regarding this. A law was enacted by California, nearly 25 years ago, the barred gender pricing for various services (i.e., repairs, haircuts, dry cleaning, etc.). When it comes to goods, however, there is no comparable law.
As far as nightclubs and bars are concerned, rules against gender-based pricing have been enacted by a number of states. This, of course, put a quick end to Lady’s Night! Limited discount programs are, however, permitted in Miami-Dade County, Florida (with certain conditions) based on gender.
What Would a Good Rule of Thumb Be?
There is no time like the present to take a good, hard look at the policies that your company uses for pricing. Are they gender-neutral? Should they be? (There is really only one right answer there.) If you own a hair salon, for instance, you can get away with charging one price for some people but another price for other people. The pricing, in this case, can be determined by hair length and the time it takes to cut and style a particular person’s hair. On the other hand, if dry-cleaning is your business, whether it’s a woman’s blazer or a men’s sports jacket, the price should be the same.
Is your company employing a Pink Tax? If for the same product (or service), you are charging men and women different prices, it’s time to put a stop to all the madness!
And while we are on the topic of gender neutrality, how are your payroll policies when it comes to what men get paid and what women get paid for doing the same job? Is your payroll department current with minimum wage requirements for both men and women? Could that payroll department use a little assistance when it comes to keeping in tune with the times?
Taxes, prices, payroll, women’s rights, men’s rights – all of this can be confusing to even the best department heads. If you could use a little help figuring things out when it comes to benefits, payrolls, taxes, etc., contact the experts at TRAXPayroll.