Germany's Strategy in Reducing the Gender Pay Gap
Germany faces a 21% gender pay gap due to key factors like women's absence in certain roles, differences in parental leave uptake, undervaluation of women's work, and lingering gender stereotypes. The approach involves enforcing wage transparency, equal pay auditing, and reporting on equal opportunity measures. Tools like Logib-D and Equal Pace are used for verifying equal remuneration. Initiatives such as parental leave allowances and support for re-entering the labor market aim to address these disparities effectively.
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Germanys Approach in Reducing the Gender Pay Gap Katinka Brose Senior Strategy Agent | FPI Fair Pay Innovation Lab Equal Pay: A Thing of Us All Brno, October 11, 2018
The gender pay gap its main causes 1. Women are still absent in particular jobs and sectors and are missing on company boards and in leading positions 2. Far more women than men take parental leave for longer periods 3. Equal Pay is neither achieved in individual nor in collective wage negotiations because of undervaluation of women s work women s inferior negotiation positions women often negotiate a package of wage and flexible work 4. Gender stereotypes still influence our thinking and behaviour, incl. career choices
Enforcing wage transparency Right to disclosure for employees companies with more than 200 employees asking for wage setting factors and median wage of a control group with min. 6 colleagues Voluntary equal pay auditing companies with more than 500 employees auditing on a regular basis Reporting on equal opportunity measures companies with more than 500 employees report on measures implementing equal pay and equal opportunities in management reports
Verifying equal remuneration Logib-D / Equal Pace Measuring the in-company wage gap Internationally applied tool EG-Check Considering equal value of work Evaluating pay schemes with regard to pay equity Monitor Wage Transparency Assessing both wage gap and pay equity Compliance with latest transparency regulations
Parental leave and allowances Parental Leave Parental leave for 12 months 2 additional months when the partner takes leave > now, 1/3 of fathers take paternal leave Parental Allowance Compensating for income when a parent stops or reduces working Min. 300 , max. 1.800 , 60 % of monthly net income; max. payment of 14 months Parental Allowance Plus Supporting parents who work part-time soon after the birth of a child One month of parental allowance becomes two months of parental allowance plus Child Care Entitlement to day care for children from age one Funding allocation for day care expansion investment programme to 1 bil.
Re-entering the labour market Project Perspective Comeback to Re-integrate women in the labour market smoothly Decrease time of absence Providing access to vocational training Finding strategies to reconcile family and career options Central goal: close cooperation with employers and Federal Labour Office
The Equal Pay Day Developed in the USA, today the leading campaign of Business and Professional Women globally.
Next Equal Pay Day in Germany on March 18, 2019 The day shows the period women work for free whereas men already start to earn their wages on January 1 of a given year.
What can be done to close the gap? Let s talk about money! Question gender stereotypes Create an open and transparent company culture Support women in STEM and men in care professions Equally share care responsibilities and employment Move women into leadership positions Improve reconciliation of careers and care to name only a few options
Thank you! www.fpi-lab.org
