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Gender Pay Gap in Germany Narrows to 16% in 2024: Causes and Insights

Gender Pay Gap in Germany Shrinks to 16%, Fastest Reduction Since 2006

For the first time since 2020, the gender pay gap in Germany has narrowed in the past year. According to the Federal Statistical Office, the recorded difference in earnings has decreased from 18% to 16%. This reduction is attributed to slightly higher wage increases for women compared to men in 2024.

Since 2006, the gender pay gap, also known as the Gender Pay Gap, had never narrowed as quickly within a year as it did in the past year. In 2006, the earnings gap was still 23%.

In 2024, men earned an average of 26.34 euros per hour, 4.10 euros more than women. The statistical office explains almost two-thirds of the gender pay gap by higher part-time rates among women and lower salaries in female-dominated professions.

However, an unexplained gap (adjusted Gender Pay Gap) of 1.52 euros or around 6% of the gross hourly wage remains. This value also remained unchanged in 2024.

This means that even with comparable work, qualifications, and employment history, women earn 6% less than men. The authority assumes that career breaks due to pregnancies, childcare, or caring for family members play a role here, but these are not recorded in detail. It is assumed that these factors could explain further parts of the wage differential. The 6% therefore represents an upper limit for possible wage discrimination by employers.

Key Trends

  • The gender pay gap in Germany has decreased from 18% in 2020 to 16% in 2024.
  • This marks the fastest reduction in the gender pay gap since 2006.
  • The decrease is primarily attributed to higher wage increases for women compared to men in 2024.
  • Higher part-time rates among women and lower salaries in female-dominated professions account for around two-thirds of the gender pay gap.
  • An unexplained gap of 6% remains, which could be partially due to career breaks for family-related reasons.

Significance

The narrowing of the gender pay gap is a positive step towards gender equality in Germany. However, the remaining 6% unexplained gap suggests that there may still be instances of discrimination or other factors contributing to the wage disparity. Further research and efforts are needed to address this issue and ensure equal pay for equal work.

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