Gender Pay Gap Narrows by Two Percent in Germany

The gender pay gap in Germany has decreased, marking a significant shift in the earnings landscape between men and women. According to the Federal Statistical Office, the wage disparity has dropped from 18% to 16% within the last year. This reduction is attributed to slightly higher wage increases for women compared to their male counterparts during 2024.

This is the first time since 2020 that the gender pay gap has contracted at such a pace. Notably, in 2006, the gap was considerably larger, at 23%. The latest data reveals that in 2024, men earned an average hourly wage of EUR26.34, which is EUR4.10 more than women.

The statistical office attributes nearly two-thirds of the pay gap to the higher rates of part-time employment among women and the generally lower salaries in female-dominated professions. However, there remains a persistent gap, referred to as the adjusted gender pay gap, which stands at EUR1.52 or approximately 6% of the gross hourly wage, without a clear explanation. This figure has not changed in 2024.

Even when comparing individuals with similar roles, qualifications, and career histories, women continue to earn approximately 6% less than men. The agency suggests that interruptions in employment, often due to maternity leave, child-rearing, or caregiving responsibilities, could contribute to this disparity, although these factors are not explicitly documented.

Analysts believe that understanding these causes could provide insights into the remaining wage differences. The 6% gap thus represents a potential upper limit on possible wage discrimination by employers.

As the dialogue around gender equality continues to evolve, it remains essential to address the underlying issues contributing to the gender pay gap. Observers expect that sustained policy measures and cultural shifts will play a crucial role in further narrowing the gap in the future.