PurposeDrawing on the ability-motivation-opportunity model, this study investigates how gender-inclusive human resource management practices and overall fairness perception promote the career progression of female employees via psychological empowerment.Design/methodology/approachPartial least structural equation modelling (PLS-SEM) was applied to two-waves data collected from 308 respondents from Pakistan to confirm hypotheses.FindingsFindings suggest that gender-inclusive HRM practices substantially affect female employees' psychological empowerment and career progression. Psychological empowerment is a mediating mechanism that explains the effect of gender-inclusive HRM practices on female employees' career progression. Finally, overall fairness perception further amplifies the effect of gender-inclusive HRM practices on psychological empowerment and career progression.Practical implicationsThe study provides evidence to policymakers that organizations may promote psychological empowerment and career progression of female employees by implementing gender-inclusive HRM practices and promoting overall fairness perception.Originality/valueThis study contributes to achieving the SDGs by examining the impact of gender-inclusive HRM practices and overall fairness perception on female employees' psychological empowerment and career progression. Specifically, it aligns with “Goal 5 - achieve gender equality and empower all women and girls” and “Goal 8 - promote sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all”.