The gender pay gap will continue as it appears to exist within the EU. This is because only four countries have managed to incorporate the EU Pay Transparency Directive into their national law.
Member States had been given a deadline of three years, from 2023 when the relevant directive was adopted, until 7 June 2026. However, only Italy, Lithuania, Malta and Slovakia have done so. The remaining 23 member states missed the deadline, prompting the European Trade Union Confederation (ETUC) to call for immediate government action to end pay inequalities across Europe.
Yesterday's announcement by the ETUC states, among other things, that an analysis by the European Trade Union Institute proves that the inaction of the member states costs billions to working women within the EU. The Commission's Pay Transparency Directive aimed to change the current situation by requiring employers to become more transparent about wages and helping to strengthen the principle of equal pay for equal work. The directive aimed to reduce the gender pay gap in the EU, which stands at 11%, which means that women's gross hourly earnings are, on average, 11% lower than men's, according to Eurostat.
More specifically, according to the analysis of the European Trade Union Institute, it appears that:
• The average working woman will continue to be paid €3,800 per year less than men if the current gender pay gap of 11% continues.
This means that the 92.5 million working women in the EU collectively lose more than €358 billion per year.
• The average working woman would be €672 per year poorer than if there had been a 10% reduction in the gender pay gap as a result of pay transparency.
This means that the 43 million women working in companies covered by the Pay Transparency Directive will lose a total of €28 billion per year compared to a 10% reduction.
The European Trade Union Confederation (ETUC) says the figures show why Member States must finally show an urgent need to incorporate the Pay Transparency Directive into their national law. The European Commission must take infringement action against those who continue to delay.
ETUC Secretary General Esther Lynch said: "The cost of pay transparency measures is small for companies, but this analysis shows that the inaction of national governments will cost working women billions in lost wages. This is completely unacceptable when women have already suffered decades of pay discrimination. Time is running out for the culture of secrecy that has allowed male-dominated boards to escape pay discrimination for so long."
ETUC Deputy Secretary-General Isabelle Schömann said: "Despite the equal pay enshrined in the EU Treaties since 1957, a lack of transparency and hidden bias have allowed discrimination to continue for almost 70 years. This cannot continue. This is an economic damage caused to millions of working women and a violation of the rule of law. Any government that continues to evade its legal responsibility to implement this directive can expect to be taken to court."
