Do you know women on the boards of top German companies earned more on average than their male peers? Yes.
What the study says
According to a new study, women outearned men for the seventh year in 2021. However, the salary advantage of top female managers in Germany shrank by 17 per cent year-on-year to 3,48,000 euros ($359,500) per annum as their male peers’ salaries rose faster in 2021, the study published by consulting firm Ernst and Young (EY) on Monday showed.
In addition, the proportion of women on executive boards is growing only slowly, reports Xinhua news agency.
“Highly qualified female top executives continue to have a very good negotiating position,” EY compensation expert Jens Massmann said, pointing to companies’ increased efforts to recruit women to their top management ranks.
Is the trend changing?
The gender pay gap has shrunk in Germany over the past 15 years but remained unchanged last year, according to data released by the German Federal Statistical Office (Destatis) this March.
In 2021, women in Germany earned an average of 18 per cent less per hour than men, the same level as in the previous year, Destatis said.
In 2006, the difference between men’s and women’s pay in Europe’s largest economy was 23 per cent.
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“Distributing gainful employment and care work equally is a prerequisite for reducing inequalities in society and closing the pay gap,” Lisa Paus, German federal minister for family affairs, senior citizens, women and youth, had said earlier.
Worldwide, women only make 77 cents for every dollar earned by men. As a result, there’s a lifetime of income inequality between men and women and more women are retiring into poverty.
As per UN Women, it will take 70 years to close this gap at current rates. Labour policies are a critical factor when it comes to this gap. For instance, women face greater constraints in balancing paid work and family responsibilities.
Restrictive policies, such as inflexible working hours and limited parental leave, can impede women’s mobility in the workforce and force them into part-time employment. In turn, this exposes them to further inequalities, such as limited access to social protection, particularly old-age benefits.
Women with children are more vulnerable to these inequalities — also known as the motherhood penalty.
In sub-Saharan Africa and South Asia, the gender pay gap is 31 per cent and 35 per cent, respectively, for women with children, compared to 4 per cent and 14 per cent for women without children.
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