Women in Germany effectively work without pay for an additional 66 days compared to their male counterparts, marking Equal Pay Day.
Tuesday, 7 March
Women in Germany still working 66 days 'unpaid' due to pay gap
Here's a shocker you don't want to hear – women in Germany are still working almost two months for free this year compared to their male counterparts, according to the Federal Statistical Office. In 2024, the gender pay gap still stood at an alarming 16%. That means women have to put in an extra 66 days of work to catch up with men's earnings, a slight improvement from last year's 18% gap.
The gender pay disparity in Germany is deeply ingrained in the labor market, with women more likely to work in lower-paid sectors and take career breaks for childcare, often out of necessity rather than choice. They also tend to work part-time. The German Trade Union Confederation (DGB) reveals that over 70% of the social work sector, a sector known for underpaid jobs crucial for society, consists of women.
A study by the Hans Böckler Foundation further highlights the issue. It shows that a preschool teacher, whose job requires similar levels of expertise and responsibility as an electrical engineer, gets paid a staggering 12 euros less per hour!
Uta Zech, the Equal Pay Day campaign leader, argues that systemic factors are to blame. She advocates for eliminating spousal tax splitting, as it discourages secondary earners (usually women) from working full-time. Zech also endorses greater wage transparency, a requirement EU regulations will soon enforce.
Germany is taking action to tackle the issue, with legislative and regulatory changes. The Transparency in Wage Structures Act (Entgelttransparenzgesetz) mandates companies with 500 or more employees to disclose gender pay gaps every three to five years. Smaller companies, those with 200+ employees, are required to provide pay information to employees upon request. The act will soon be updated to align with the EU Pay Transparency Directive, increasing reporting obligations and employee rights.
Companies with 150 or more employees will be obligated to submit gender pay gap reports starting from 2027, with the 2026 reporting year in focus. The updated legislation includes stricter penalties for non-compliance and mandates systemic reforms in pay structures to reduce persistent gender pay disparities. If a pay gap of 5% or more is found without justification, companies must conduct a joint pay assessment with employee representatives to bridge the gap.
However, many German companies are not yet prepared for these changes, with some lacking awareness of the directive's specific requirements. Draft amendments to the Entgelttransparenzgesetz are expected to be published by early 2026, and new regulations will come into effect by July 2026. Companies with 250+ employees will submit their first pay gap reports by June 2027, while smaller organizations, those with 100-149 employees, will face their first reporting deadline in 2031.
- The gender pay disparity in Germany, coupled with the underrepresentation of women in higher-paying sectors and roles, underscores the need for initiatives promoting workplace wellness and health and wellness, with a particular focus on women's health, to address this imbalance.
- In the process of addressing the gender pay gap, it is crucial to provide greater transparency regarding salaries in the science and healthcare sectors – industries largely dominated by women – to help close the wage disparity and foster a more equitable working environment for all.
