The European Commission plans to use a series of measures aimed at sig nificantly 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

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, one of the key issues to achieve a true gender equality in the EU.

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.
• Support the development of tools to help employers analyse gender pay gaps within their companies.
• 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. 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.

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.

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.