Despite the introduction of equal pay for equal work in the European Union in 1957, the gender wage gap persists and a full 67 years later. Women in the region earn an average of 12 less than men7% of salary. Not surprisingly, in the tech industry, the gender wage gap has more than doubled.
According to a report by compensation platform R**IO, the median in Europe is 26%, which varies from country to country. For example, 18% in France, 23% in the Netherlands, 25% in Germany and 29% in the United Kingdom.
It is worth mentioning that as career advancement increases, the wage gap decreases at higher levels, and women are on a more level playing field in the promotion process of career leaders. There is no gender pay gap at the senior level, compared to 17% at the manager level and 22% at the lower level.
There are hardly any significant statistical differences between men and women in terms of promotions and promotion-related salary increases (only about 1 per cent).
However, as the hierarchy of positions progresses, the proportion of female employees gradually decreases – only 19% of executives and 35% of managers are women. At the same time, women are underrepresented in the tech industry overall, accounting for only 40% of the total workforce.
This suggests that the pay gap is primarily a result of the hiring process rather than internal salary increases and promotions as a result of internal bias.
The new EU regulations aim to address the gender wage gap.
To address gender wage discrimination, the EU approved a new set of rules in May that establish binding wage transparency measures. The regulation, which will be implemented across the EU by 2026, gives employees the right to access salary information, requires companies to take action if their gender pay gap exceeds 5%, and fines and penalties for companies that do not comply.
According to the report, the majority of respondents (69%) are not concerned about this directive. The main reason is that the regulation is "too far away from the present to be a priority". Existing plans to address the gender wage gap before the law goes into effect and wage transparency measures that have been established are other reasons for the lack of concern.
But for respondents who expressed concerns, the main issue was related to transparency. That is, to make the framework and standards of salary levels and career development visible to employees.