The Ministry of Women's Affairs has received a 12 percent funding increase - an additional $2 million over four years - to do more research and policy work on the gender pay gap.

Women's Affairs Minister Pansy Wong says the funding will help the ministry to provide well-researched advice on the pay gap and other pay and employment issues.

"The pay gap between men and women has been at about 12 percent for the past decade and the government is committed to addressing this issue and working towards closing the gap," Mrs Wong says.

"One of the barriers is occupational segregation, which limits women's employment choices. To achieve real change, we must ensure that women's skills are fully developed and recognised - for the benefit of themselves, their families and for New Zealand as a whole."

The extra funding would be spent taking a fresh look at the causes of the gender pay gap and taking effective measures to reduce it.

The additional budget funding, which will be dispersed at $500,000 a year, represents about a 12 percent increase in the Ministry's annual budget of about $4.2 million.