
The gender pay gap is still very visible in Europe. Several indicators show inequality between women and men in many areas, but economic life is one of the main areas that affects women the most. Despite some improvements in Europe, women still suffer from gender gaps when it comes to wages, labor force participation, employment and hierarchical positions in the workplace.
Gender pay inequality has been increasingly debated in recent years. The unadjusted gender pay gap is a meaningful indicator that shows the difference between men's and women's average gross hourly earnings, expressed as a percentage of men's average gross hourly earnings. It does not take into account education, age, working hours or type of work.
This basically reveals how much less women earn than men. In 2022, the gender gap was 12.7% in the EU. In other words, women earned an average of 12.7% less per hour than men. This shows that women earn on average 87.3 euros for every 100 euros earned by men. In short, women would have to work an extra 1.5 months to make up the difference. The gender pay gap varied significantly in the EU and the European Free Trade Association (EFTA) bloc. In 2022, it was over 17% in some countries. Estonia had the highest gender pay gap at 21.3%, followed by Austria (18.4%), Switzerland and the Czech Republic (both 17.9%).
Luxembourg (-0.7%) was the only country with a negative figure, meaning that women earned slightly more than men. Apart from Luxembourg, Italy, Romania and Belgium had the lowest gender pay gap at less than five %. Among the EU's "Big Four", Germany (17.7%) and France (13.9%) had gaps higher than the EU average. In six countries, namely Slovenia, Latvia, Poland, Malta, Switzerland and Lithuania, the gender pay gap increased, ranging from 0.1 pp to 3.7 pp.
According to the Commission, the main reasons are:
· Sectoral breakdown: About 24% of the gender pay gap is related to the overrepresentation of women in relatively low-wage sectors such as care, health and education. In 2022, 28% of women in the EU worked part-time compared to 8% of men.
· Pay discrimination: Women earn less than men for doing equal work or work of equal value in some cases.
· Unequal share of unpaid work: Women work more hours per week than men, but they spend more hours in unpaid work, a fact that can also affect their career choices. They are much more likely to stop working to care for children and relatives. This is why the EU promotes equal sharing of parental leave.
· Glass ceiling: The position in the hierarchy obviously affects the salary level. For example, the occupation with the biggest differences in hourly earnings in the EU was managers: 23% lower earnings for women than for men.
In addition to being paid more than women, men generally occupy higher positions than women. In 2021, women accounted for only 35% of managers in the EU. As the graph above shows, the % of women in this position was not above 50% in any EU country. Latvia (46 %), Poland and Sweden (both 43 %) had the largest %years while Cyprus (21 %), Luxembourg (22 %) and the Netherlands (26 %) recorded the lowest %years. Many factors still need to be considered to understand the gender pay gap. In 2022, women with higher education (37.1%), which includes universities, colleges, technical training, in the EU were clearly higher than men (31.4%). The % of women with higher education was higher than the corresponding share of men in almost all EU countries, except Germany and Austria.
However, the employment rate of women (83.6) was lower than that of men (88.9 %) in the EU. These figures clearly show that women are less employed even though they are more educated. Between the ages of 15-64, the EU employment rate for men was 74.7% in 2023, surpassing that of women (64.9%) by 9.8 percentage points. The employment rate of men was higher than that of women in all EU countries, ranging from 0.3 pp in Lithuania to 19.1 pp in Greece. Turkey, a candidate country, was 34.6 pp. Spain, Malta and Luxembourg saw significant improvements in narrowing the gender gap in labor force participation in the last two decades.