Unveiling Financial Transparency: A Profitable Decision!
On March 8, 2025, the Social Democratic Party (SPD) drew attention to the issue of wage inequality between men and women, emphasising the importance of implementing European wage transparency regulations in German law by 2026. The day before, Equal Pay Day was observed, with the motto focusing on this very issue.
Ute Jordan-Ecker, the chairwoman of the Oberhausen SPD Women's Association, highlighted the issue in Sterkrade city center from 10:00 to 11:30 am. The goal of Equal Pay Day is to raise awareness of wage and pension gaps between men and women, and the campaign aims to address the problem through wage transparency.
The gender pay gap in Germany has shown some improvement, decreasing from 18% in 2023 to 16% in 2024. However, despite many efforts, the situation for women in terms of wage inequality has changed only slightly in recent years. The focus of Equal Pay Day is on the causes of wage and pension differences between men and women in gender relations.
A clear connection between stereotyping, discrimination, and lack of wage transparency contributes to the gender wage gap. Stereotypes and biases shape societal and workplace perceptions about gender roles, often leading to assumptions about women’s capabilities, priorities, and commitment. These stereotypes limit opportunities for women, influence hiring and promotion decisions, and justify lower pay, reinforcing wage disparities.
Discrimination manifests as unequal pay for equal work and unequal access to education, training, and career advancement. Research shows that a significant portion of the gender pay gap—around 63%—cannot be explained by measurable factors like hours worked or occupation, indicating that discrimination plays a substantial role.
Lack of wage transparency hides these discriminatory practices and makes it difficult for employees to identify and challenge unfair pay differences. Without clear information on salaries, women may be less likely to negotiate for fair pay or recognise they are being underpaid compared to male counterparts.
Wage transparency can help address the gender wage gap in several ways. It exposes pay disparities within organisations by making salary information accessible, increasing accountability and reducing the opportunity for covert discrimination. Transparency empowers employees, especially women, by providing them with the information needed to negotiate salaries more effectively and advocate for equal pay.
It helps to challenge and break down stereotypes by making wage decisions more objective and based on clear criteria rather than biased assumptions. Wage transparency supports policy enforcement and cultural change by enabling regulators and stakeholders to monitor and address unjustified pay gaps.
The European wage transparency regulations require employers to define and communicate the criteria they use to pay women and men. These regulations will be implemented in German law by 2026, offering a significant step towards reducing wage differences between men and women.
Continuing to raise awareness and working to change societal conditions is important for addressing wage and pension differences between men and women. The average gross hourly wage for women in Germany is approximately 16% less than for men, as calculated for the year 2024. The decreasing gender pay gap is a positive sign, but there is still much work to be done to achieve true wage and pension equality.
- Ute Jordan-Ecker, the chairwoman of the Oberhausen SPD Women's Association, emphasized the importance of implementing European wage transparency regulations in German law by 2026, highlighting the issue in Sterkrade city center on Equal Pay Day.
- The motto for Equal Pay Day focuses on the importance of wage transparency in addressing the gender wage gap and the campaign aims to address this issue through raising awareness of wage and pension gaps between men and women.
- The focus of Equal Pay Day is not just on the visible causes of wage and pension differences, but also on the subtle influences, such as stereotypes and biases, that contributes to the gender wage gap by shaping societal and workplace perceptions about gender roles.
- Transparent policies and regulations, like the European wage transparency regulations, can help break down stereotypes and biases by making wage decisions more objective, and support policy enforcement and cultural change towards true wage and pension equality.
