Equal Pay Day: Do women earn more now? The difficult road to financial equality

What is Equal Pay Day and what does it mean?

The Equal Pay Day is an international day of action that demands equal pay for equal work. The date of Equal Pay Day varies from country to country. But in general, it is the day until which women in an economy have worked for free compared to men since the beginning of the year, purely mathematically. Equal Pay Day is intended to draw attention to this shortcoming, because little has been done about the pay gap between men and women for years.

That's what they show Data from the Federal Statistical Office: In 2022, women in Germany earned 18 percent less gross per hour. This is also due to the fact that many women work part-time in lower-paid jobs and more often than men. For example, there is a structural undervaluation of occupations that are particularly important for society, in which women in particular work. These include jobs in nursing and education, for example.

If you exclude wage-determining characteristics, such as job and sector as well as the level of employment, and then compare the pay of men and women with similar jobs, the overall picture is still negative: In 2022, women still earned seven percent less than their male colleagues. This is called an adjusted gender pay gap.

Why are women paid less than men?

Gender stereotypes, lack of transparency or history: There are many reasons for unequal pay for work of equal value.

One important aspect is the discrepancy between “men's and women's work,” which, although legally no longer exists today, is still rooted in many minds and industries. For example, there is still a structural undervaluation of occupations in which women in particular traditionally work. Jobs in hospitals, nursing homes or childcare, for example, are paid less than jobs in manufacturing, which are more dominated by men.

The origins of this unequal treatment go back a long way. As early as the 16th century, women were responsible for caring for and raising children. However, the family's common home was a business unit in which both spouses were equally responsible for economic survival. This only changed in the 19th century, when industrialization shifted large parts of the original domestic production to the non-domestic sector of manufactures and factories. At that time, the house fathers became workers, employees and civil servants who worked outside the home for payment. The housemothers, on the other hand, became housewives, who from then on were only to do unpaid household work for the family.

In the major encyclopedias well into the 1960s, the term “work” was therefore only defined as productive, paid employment. On the other hand, those “areas of activity that address human concern and willingness to help” were listed under the specifically listed term “women's work.” It was not until 1977 that a division of duties in marriage that had been prescribed up to that point was abolished. In 1994, a further addition followed: “The state promotes the actual enforcement of equal rights between women and men and works to eliminate existing disadvantages.” In the same year, the second occurred Equal Rights Act in force, which should, among other things, promote the reconciliation of family and work.

Men were also preferred for a long time when it came to legislation relating to money and bank accounts. In Germany, for example, women have only been allowed to open their own bank account since 1958. In 1977, the law reforming marriage and family law finally followed, according to which women were no longer required to primarily manage the household. Thereafter, the number of women in administration and industry rose steadily. Finally, in 1980, the right to equal treatment at work and an equal salary were enshrined in the German Civil Code. A constitutional ideal that is still being worked on today.

In the 20th century, the gender pay gap began to narrow somewhat as women gained more access to education, entered the workforce in larger numbers and also took up occupations that had long been dominated by men. However, progress has been slow, and in many industries and occupations, women continue to face significant pay gaps.

Financial equality in a country comparison

In many countries, women still earn less than men on average, even though they have the same qualifications and experience. As already mentioned, women in Germany earn 18 percent less than men without adjustment. Compared to other European countries, Germany is thus one of the last places, well behind EU average of 13 percent.

However, the European average shows major extremes: While Luxembourg has the lowest gender pay gap of just under 1.4 percent - followed by Romania with 2.2 percent and Italy with 3.9 percent - Estonia is responsible for almost three times as large and thus the highest pay gap at 21.8 percent.

The global gender pay gap is set by the International Labour Organization (ILO) at 20 percent appreciated. However, wage levels vary greatly from country to country and reliable figures are not available for all countries.

Which measures should ensure greater justice

In most countries, there is therefore still a long way to go before the gender pay gap is closed. In recent years, initiatives such as equal pay laws, wage transparency measures and efforts to promote diversity and inclusion in the workplace have already been taken. But despite these efforts, the gender pay gap persists, making it clear that further action is needed to ensure equal pay for all workers regardless of gender.

Many organizations and individuals use Equal Pay Day to promote discussions, events, and campaigns aimed at closing the gender pay gap. These include policies that promote equal pay for equal work, increasing the transparency of wage data and encouraging employers to carry out regular pay checks.

In this regard, the Federal Labour Court has now backed women. According to the ruling, companies can no longer justify salary differences between men and women with “better negotiating skills” on the part of men. A woman had filed a lawsuit when she found out that she earned less than her immediate colleague.

However, in addition to the measures mentioned above, women should also take on more financial responsibility. In addition to solid financial education, this includes personal wealth planning and the development of an individual investment strategy that gives women more financial freedom and solid retirement security.

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