Gender Parity in the Workplace Still a Vision for the Future: Experts See Equal Pay Far from Reality

Despite Europe-wide efforts to achieve wage parity between men and women, Marcel Fratzscher, President of the German Institute for Economic Research, notes a persistent imbalance in Germany: "Equal pay for equal work" is not to be expected in the foreseeable future. He reaffirmed this in a statement to the weekly newspaper "Zeit". According to Fratzscher, the full economic potential of women in the labor market remains untapped. Improved compensation and higher employment rates for women play a key role in closing the skills gap. However, the current situation—insufficient childcare availability and tax and employment law frameworks—hinders women from expanding their professional capacity. Meanwhile, recent figures from the Federal Statistical Office reveal a significant disparity in full-time employment: According to a request from Bundestag member Sahra Wagenknecht, about three-quarters of women in full-time positions earn less than their male colleagues, in some cases by 30 percent or more. One-third settle for up to 30 percent lower pay, while only 26 percent can report an income at the same level or higher. This earnings gap is also reflected in the average gross hourly earnings. In 2023, the figure for men was 26.63 euros on the federal average, compared to 22.54 euros for women. In addition to the presence of women in often lower-paid professions, the sectors in which men are predominantly employed, leading to higher wages, also play a role. Although the EU has created laws that mandate equal pay for work of equal value, implementation remains a challenge. The EU Pay Transparency Directive introduced in 2023 aims to reduce the so-called gender pay gap, but current figures show that there is still a long way to go.