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European Commission Aims to Significantly Reduce the EU Gender Pay Gap
The European Commission plans to use a series of measures aimed at significantly reducing the pay gap between men and women over the next five years. The average gender pay gap in the EU currently stands at 18%. To lower this rate, the Commission plans to raise awareness among employers, encourage initiatives to promote gender equality and support the development of tools to measure the gender pay gap. On the other hand, new legal measures are not excluded. The Commission intends to consult the European social partners and analyse the impact of a number of options: strengthening sanctions, providing pay transparency and regular reporting on the pay gap. A Eurobarometer survey released today shows that more than 80% of Europeans support urgent action to address the gap.
" I am deeply concerned that the gender
pay gap has barely fallen over the last 15 years and in some countries it is
even increasing," said Vice-President Viviane Reding, EU
Commissioner for Justice, Fundamental Rights and Citizenship. " In these times of crisis, the gender
pay gap is a cost
The gender pay gap – the average difference in gross hourly earnings between women and men across the economy as a whole – now stands at 18% for the EU, with considerable differences between countries and sectors. It reflects ongoing inequalities in the labour market, which in practice mainly affect women. Reducing the gap requires action on several levels to tackle its multiple causes.
In the second half of 2010, the Commission will put forward a new EU strategy for gender equality for 2010-2015. Tackling the gender pay gap will be one of the main priorities. The Commission will use all available instruments, both legislative and non-legislative, to reduce the gender pay gap.
The Commission will
analyse in detail the economic and social impact of certain options, together
with the European social partners, in particular:
·
On reporting the gender pay gap and ensuring transparency on pay at
company and individual levels or collectively through information and
consultation with workers;
·
On reinforcing the obligation to ensure gender neutral job classifications and
pay scales;
·
On improving the provisions on sanctions in case of a breach of the
right to equal pay, to ensure that they are dissuasive and proportional (for
instance, higher sanctions in case of repeated offence).
The Commission will also:
·
Raise awareness
among employees, employers and the public of the causes of the pay gap and
potential solutions;
·
Encourage initiatives
promoting gender equality at the workplace with equality
labels, charters and awards. In
·
Support the development of tools to help employers analyse gender pay gaps
within their companies. For example
·
Improve the supply and quality of statistics on the pay gap.
Addressing
gender inequalities in the labour market also forms a key element of Europe2020
the EU's economic and employment strategy for the next decade (see IP/10/225 ). According to a study conducted under
the Swedish EU Presidency in 2009, eliminating gender gaps in employment in the
EU Member States could lead to a potential 15% - 45% increase in GDP.
Finally, the Commission is
conducting a study on initiatives promoting gender equality in the workplace.
The results of the study will be presented on 5 May.
Background
A Eurobarometer survey on gender equality shows that Europeans consider closing the gender pay gap is a top priority in tackling inequality between women and men, along with confronting violence against women. 82% of Europeans think that urgent action should be taken to tackle the gender pay gap. Meanwhile, 62% of respondents consider gender inequality to be widespread in their country. 66% also said the situation has improved over the past decade.
Thanks to EU and national
legislation on equal pay, cases of direct discrimination – differences in pay
between men and women doing exactly the same job – have fallen. But the pay gap goes far
beyond this: it reflects ongoing discrimination and inequality in
the labour market as a whole which, in practice, mainly affects women.
The effect of the gender pay
gap on lifetime earnings means that women will also have lower pensions. As a
result, women are more affected than men by persistent and extreme
poverty: 22% of women aged 65 and over are at risk of poverty compared to 16%
of men.
Awareness-raising activities are essential
to inform employers, employees and stakeholders why there is still a gender pay
gap and how we can reduce it. The Commission is therefore launching the second
phase of an EU-wide information campaign with actions decentralised across the
27 EU Member States. A new online gender pay gap calculator will allow
employees and employers to visualise the gender pay gap.
See also MEMO/10/65
Further information
Gender pay gap press pack
http://ec.europa.eu/social/main.jsp?langId=en&catId=89&newsId=708&furtherNews=yes
ANNEX
How big is the pay gap in
different Member States?
Measured as the "relative difference in average gross hourly earnings between women and men," the gender pay gap is estimated to be 18% in the EU as a whole (see graph below).
Figures and graphics available
in PDF and WORD PROCESSED
Areas
for prioritisation in the field of gender equality
SPECIAL EUROBAROMETER 326 :
"GENDER EQUALITY IN THE EU IN 2009
http://ec.europa.eu/public_opinion/archives/eb_special_en.htm
Urgency in addressing the
pay gap
Figures and graphics available in PDF and WORD PROCESSED
Measures to address the
gender pay gap