The Gender Pay Gap: Women Are Still Paying the Price of Inequality

We know that progress is possible. Our history and the leaders of the women’s rights movements can show us the way. Women and girls all over the world who are demanding an equal share, said Volker Turk, UN High Commissioner for Human Rights, on this year’s International Women’s Day.

The road is in front of us, yet we are forced to navigate it while overcoming daily barriers that have been placed there for centuries.

“For ALL Women and Girls: Rights. Equality. Empowerment,” is the theme chosen by the United Nations for the 2025 celebration of International Women’s Day.

“Defending women’s rights leads to a better future for all,” according to the UN Human Rights Office.

Progress in women’s rights and gender equality, driven by strong feminist movements and women’s rights activists around the world, has profoundly transformed our societies, making them more just, resilient, and peaceful.

Gender equality lies at the heart of all human rights, human dignity, and our shared future. However, these achievements cannot be taken for granted. Women’s rights and gender equality need to be guarded more than ever.

The Right to Equal Pay

The principle of equal pay for women and men for equal work was incorporated into European legislation as early as the Treaty of Rome, the founding document of the European Union, in 1957.

The context of the Treaty of Rome was France’s initiative to avoid unfair competition between countries.

The ILO Convention 100 of 1951 also addresses the principle of equal pay for “work of equal value.” In the European Union, the principle of “equal pay for equal work of equal value” was only implemented through the Equal Pay Directive in 1975.

According to Marina Farmakidi, a lawyer at the Diotima Centre, the focus on gender equality first emerged with equal pay for equal or comparable work and gradually evolved into policies for equal treatment in all working conditions.

This principle is embedded in Article 22, paragraph 1, of the Greek Constitution, which states that “all workers, irrespective of sex or other distinctions, shall
be entitled to equal pay for work of equal value.”

Every worker can claim the highest salary received by a colleague for the same or equal work, regardless of whether the pay difference is based on gender or any other reason that is prohibited from causing discrimination.

What is the Gender Pay Gap?

The gender pay gap refers to the difference in average annual earnings between women and men. It is based on the wages paid directly to workers before income tax and social security contributions are deducted.

Only companies with 10 or more employees are included in the calculations. The average gender pay gap in the EU stood at 12% in 2023.

Some of the reasons for the pay gap are structural and systemic, relating to differences in the types of work, education levels, and professional experience.

Despite ongoing progress, the gender pay gap remains a stubborn issue in the EU, with some countries seeing it widen significantly.

Gender Pay Gap in the EU

According to the European Statistical Office, significant differences in pay continue to be observed across EU countries today.

In 2023, the average gross hourly earnings of women were 12% lower than those of men across the EU, and 12.3% lower in the Eurozone. Latvia recorded the highest pay gap at 19%, followed by Austria (18.3%) and the Czech Republic (18%). Greece was in the middle of the rankings with a 13.6% gap.

It is striking that even in developed countries, like Germany, gender pay inequalities are still significant, with a gap of 17.6%.

Luxembourg is the only country where women earn more than men.

The Largest Pay Gaps in Finance and Insurance

The gender pay gap is generally much lower for newcomers to the job market but widens in older age groups.

Eurostat’s findings show that the sectors with the largest pay gaps are finance and insurance. In these sectors, the pay gap ranges from 14% in Belgium to 36.4% in the Czech Republic.

Private Sector vs. Public Sector Pay Gaps

In 2023, across all EU countries with available data, except for Hungary and Slovenia, the gender pay gap in absolute numbers was higher in the private sector than in the public sector.

This could be due to the fact that, in most EU countries, public sector salaries are determined by transparent pay scales, which apply equally to both men and women.

The pay gap in the private sector ranged from 6.1% in Belgium to 21.6% in Cyprus, while in the public sector it ranged from -4.1% in Cyprus to 19.7% in Hungary.

Why Do Men and Women Work Part-Time in the EU?

While adult or child care remains the most common reason (27.2%) that women work part-time, men appear to have the privilege of working part-time due to other reasons, though less frequently.

Longstanding Wage Inequality Against Women

The structural and persistent wage inequality between men and women was glaringly revealed by Greece’s ELSTAT wage structure and distribution survey in 2022. It made clear that not only is gender economic equality absent, but also that women’s demands for equality remain strikingly relevant.

In 2022, the average annual gross earnings for women were €17,361, which is 26.4% lower than the €21,947 earned by men.

Notably, the highest average earnings were recorded in the finance and insurance sector, at €40,086 for men, and in the professional, scientific, and technical activities sector at €32,249 for women. Yet, women in these fields still earned less than men, with their average earnings at €38,867 annually.

Conversely, the lowest average earnings were found in the arts, entertainment, and recreation sector, with men earning €12,525 and women earning €10,699. The accommodation and food services sector followed, with men earning €12,670 and women earning €11,395.

In the EU in 2022, the gender pay gap was 12.7%, with Greece at about 10.4%. This means that women earned on average 12.7% less per hour than men.

How does this translate in euros? Women earned, on average, €87.3 for every €100 earned by men in the same positions. Women would have to work an additional 1.5 months to make up the difference.

What Are the Factors Affecting the Gender Pay Gap?

The gender pay gap is not the result of a single cause; it arises from a complex mix of social, economic, and institutional factors that perpetuate inequalities between men and women in the workplace.

Women tend to work in lower-paying sectors, such as education, healthcare, and social services, while men dominate higher-paying sectors like technology, engineering, and finance. This professional segregation, known as “horizontal segregation,” results in the concentration of women in low-paid jobs.

Social expectations and gender stereotypes affect hiring, promotions, and pay. For example, women are often held to stricter standards for leadership positions or are considered less suitable for demanding professions, limiting their opportunities for career advancement.

The gender pay gap remains an ongoing challenge that reflects deeper inequalities in the labor market and society at large. Addressing it requires targeted policies that empower women to reduce wage disparities, such as increasing pay transparency and promoting equal opportunities for career advancement.

Only through coordinated efforts by governments, businesses, and society can we ensure a fairer and more equitable work environment.

Source: Tovima.com