Why pay transparency can help reduce the EU’s gender pay gap
The implementation of the principle of 'equal pay for equal work or work of equal value' – an EU right since 1958 – remains a challenge today: in many cases, women are still paid less than men for doing the same job.
In the EU, women are on average paid 13% less per hour than men. Increased pay transparency and new enforcement mechanisms aim to combat pay discrimination based on sex and contribute to closing the gender pay gap.
The Council adopted new EU rules on pay transparency on 24 April 2023.
Why pay transparency can help reduce the EU's gender pay gap
Pay transparency can help detect and tackle unjustified pay differences between men and women doing the same work.
What is the EU's gender pay gap?
In the EU, women are on average paid 13% less per hour than men.
Is the gender pay gap narrowing?
The gender pay gap decreased slightly from 16.2% to 13% in the period 2011-2020:
- 2011: 16,2%
- 2012: 16,4%
- 2013: 16%
- 2014: 15,7%
- 2015: 15,5%
- 2016: 15,1%
- 2017: 14,6%
- 2018: 14,4%
- 2019: 13,7%
- 2020: 13%
Source: Eurostat
What is the situation across EU countries?
- Latvia: 22,3%
- Estonia: 21,1%
- Austria:18,9%
- Germany: 18,3%
- Hungary: 17,2%
- Finland: 16,7%
- Czechia: 16,4%
- France: 15,8%
- Slovakia: 15,8%
- Netherlands: 14,2%
- Denmark: 13,9%
- European Union (average of EU 27 countries): 13%
- Lithuania: 13%
- Bulgaria: 12,7%
- Portugal: 11,4%
- Croatia: 11,2%
- Sweden: 11,2%
- Malta: 10%
- Spain: 9,4%
- Cyprus: 9%
- Belgium: 5,3%
- Poland: 4,5%
- Italy: 4,2%
- Slovenia: 3,1%
- Romania: 2,4%
- Luxembourg: 0,7%
- Ireland: no data available
- Greece: no data available
Source: Eurostat
What are the factors contributing to unequal pay between women and men?
- career interruptions: 91% of career breaks for childcare are taken by women, against 9% taken by men
- part-time work: 75% of all part-time employees are women and 25% are men
- job segregation: women occupy 73% of all education, health and social work jobs (considered lower-paid sectors), and men 27%
- gender imbalance in leadership roles: men hold 65% of all management positions, against 35% held by women
Source: Eurostat
How could pay transparency help reduce the gender pay gap?
Pay transparency is the practice of providing job applicants and employees with information about their pay.
Without pay transparency:
- job applicants and employees are often unable to determine whether they are being treated fairly
- victims of pay discrimination have difficulties in asserting their right to equal pay
- gender bias in the context of salaries continues
With pay transparency:
- candidates can assess a salary offer
- workers know if their pay is equal to that of colleagues of the other sex who are doing the same work
What would be the benefits of increased pay transparency?
- a society that is better informed about pay systems and job grading
- increased awareness about gender-based pay discrimination
- employees who are empowered to enforce their right to equal pay
- elimination of gender bias in pay