The sexist pay gap in the EU: policies and legislations
- thecobweb
- Jul 19, 2024
- 2 min read
Although the staggering majority of Europeans (90%) find it unacceptable for a pay gap to remain between men and women, the sex pay gap approached 13% in 2021, only decreasing by 4% as compared to the last ten years. Fascinatingly, across European Union (EU) member states, the pay gap had significant differences with regards to its percentage distribution. In 2022, it varied by 22% points, the lowest being -0.7% (Luxembourg), the highest being 21.3% (Estonia).
This sex-based discrimination is a challenge that the EU has been attempting to address for years, whether through their encouraging of member states to implement policies and legislation on a local level. However, the EU has also undertaken legislative action on itself (albeit a large part stemming from economic interests; it has been demonstrated that it is beneficial to have an equality in salaries between men and women for a stronger economy).
First of all, it is worth mentioning that some fundamental EU law does emphasise the importance of a lack of sex-based discrimination. For instance, article 157 of the Treaty on the Functioning of the European Union or TFEU enshrines the principle of equal pay for men and women. Another article worth noting is Article 19, which aims to combat all forms of discrimination, including based on sex.
Additionally, since the implementation of further directive with regards to sex equality such as the one of the 19th of December 1978 with the directive on the progressive implementation of the principle of equal treatment for men and women in matters of social security (Council Directive 79/7/EEC), further directives have been approved with regards to sex equality. This includes the 2000/78/CE Framework Equal Treatment Directive and the 2006/54/CE Sex Discrimination Directive, arguably some of the most fundamental directives on the subject.
It is also worth mentioning the recent EU Pay Transparency Directive was adopted by the European Parliament (30 March 2023). It consists in binding measures in order to increase transparency with regards to salary, meaning that employers will be prohibited from inquiring about a candidate’s pay history, and employers will be required to disclose the salary ranges of employees, specifically those with regards to sexist pay gaps when the company has more than 100 workers. Additionally, companies with a sex pay gap greater than 5% will have to collaborate with employee’s representatives in order to conduct a pay assessment. Although an advancement, the endeavour might be challenging because it further entails to overcome drivers that are deeply entrenched within our societies such as unconscious bias and stereotyping.
It is also interesting to mention that in the EU, case law is also accumulating with regards to sex equality; one of the oldest is the Defrenne II judgment of 8 April 1976 (Case 43/75). There, the CJEU ruled that equal pay based on sex must extend to all agreements which are intended to collectively regulate paid labour, thus extending that the principle mustn’t be limited to the action of public authorities.
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