Pay inequality means women ‘work for free’ until year’s end, European Commission says – Euronews.com

Report on the Gender Pay Gap in the European Union and its Implications for Sustainable Development Goals

Introduction: A Persistent Challenge to SDG 5 and SDG 8

The European Union continues to face significant challenges in achieving key Sustainable Development Goals (SDGs), particularly SDG 5 (Gender Equality) and SDG 8 (Decent Work and Economic Growth). A persistent gender pay gap, with men earning an average of 12% more per hour than women, directly contravenes the principles of these goals. This disparity is symbolically marked by the EU’s “Equal Pay Day,” which in the current year falls on the Monday when women, in effect, stop earning relative to their male counterparts for the remainder of the year. European Commissioners Roxana Mînzatu and Hadja Lahbib have affirmed that there is no justifiable reason for differential pay for equal work, underscoring the urgency of addressing this inequality.

Analysis of the Gender Pay Gap

Despite a decade of policy focus, progress towards closing the gender pay gap remains slow, hindering the EU’s progress on its 2030 Agenda commitments. The current status highlights a critical need for accelerated action.

• Average Hourly Pay Gap: 12%
• Progress Over Last Decade: A marginal 4% reduction, indicating slow advancement towards SDG 8, Target 8.5 (equal pay for work of equal value).

Causal Factors Hindering Progress on SDGs

Several structural factors contribute to the gender pay gap, each representing a barrier to achieving specific SDG targets. These interconnected issues perpetuate economic inequality and limit women’s full participation in the labour market.

1. Sectoral Segregation: Approximately 24% of the pay gap is attributed to the over-representation of women in relatively low-paid sectors such as care, health, and education. This segregation undermines efforts to achieve SDG 10 (Reduced Inequalities) by concentrating women in economically undervalued roles.
2. Disproportionate Unpaid Care Work: Women perform more hours of unpaid work per week than men. This unequal distribution of domestic and care responsibilities, as noted by UN Women Director Belén Sanz, directly impedes women’s access to and advancement in the labour market. This reality is a direct challenge to SDG 5, Target 5.4, which calls for the recognition and valuation of unpaid care work.
3. Leadership and Decision-Making Disparity: A significant barrier to pay equity is the lack of female representation in senior roles, with fewer than one in ten company CEOs being women. This “glass ceiling” demonstrates a failure to meet SDG 5, Target 5.5, which advocates for women’s full and effective participation and equal opportunities for leadership at all levels of decision-making.

European Union Policy Responses and Future Strategy

The European Commission has implemented and is developing policies aimed at closing the gender pay gap, thereby aligning its legislative framework more closely with the Sustainable Development Goals.

• Recent Gender Equality Policies: Since 2020, the Commission has advanced initiatives concerning work-life balance and care services, which are foundational to creating an environment where both men and women can thrive professionally, contributing to SDG 5 and SDG 8.
• The Pay Transparency Directive (2023): This directive is a critical legislative tool designed to enforce Target 8.5 of SDG 8. By June 2026, companies will be mandated to share salary information and take corrective action if their gender pay gap exceeds 5%. This measure aims to introduce accountability and drive tangible change.
• Forthcoming Gender Equality Strategy (Post-2025): The Commission is preparing its next strategy, which will outline new initiatives and legislation to continue the pursuit of gender equality, reinforcing the EU’s long-term commitment to the SDGs.

Analysis of SDGs in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 5: Gender Equality – The article’s central theme is the gender pay gap, the unequal distribution of unpaid care work, and the under-representation of women in leadership positions, all of which are core issues under SDG 5.
• SDG 8: Decent Work and Economic Growth – The discussion revolves around earnings, equal pay for equal work, and employment conditions, which are fundamental components of SDG 8. The goal of achieving decent work for all is directly linked to eliminating wage discrimination.
• SDG 10: Reduced Inequalities – The gender pay gap is a significant form of economic inequality. The article highlights the income disparity between men and women, and the EU’s policies aimed at reducing this gap align with the objectives of SDG 10.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. SDG 5: Gender Equality

   • Target 5.4: “Recognize and value unpaid care and domestic work…” The article directly addresses this by stating that women “spend more hours in unpaid work which could impact their career progression” and face an “unequal distribution of care work.”
   • Target 5.5: “Ensure women’s full and effective participation and equal opportunities for leadership…” This is identified when the article points out that “less than one in 10 company CEOs are women,” highlighting the lack of women in top leadership roles.

2. SDG 8: Decent Work and Economic Growth

   • Target 8.5: “…achieve full and productive employment and decent work for all women and men… and equal pay for work of equal value.” The entire article is framed around this target, with the opening statement that men “continue to earn on average 12% more per hour” and the quote, “There is no reason why men and women should be paid differently for doing the same job.”

3. SDG 10: Reduced Inequalities

   • Target 10.4: “Adopt policies, especially fiscal, wage and social protection policies, and progressively achieve greater equality.” The article mentions specific policies aimed at this target, such as the EU’s “Pay Transparency Directive,” which forces companies to address gender pay gaps exceeding 5%.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• Indicator 8.5.1: Average hourly earnings of female and male employees. The article explicitly uses this indicator by stating the gender pay gap in the EU is 12% based on average hourly earnings. It also tracks progress by noting the gap has “decreased by 4% over the last decade.”
• Indicator 5.5.2: Proportion of women in managerial positions. This is directly referenced with the statistic that “less than one in 10 company CEOs are women,” which serves as a clear measure of women’s representation in top economic leadership roles.
• Indicator 5.4.1: Proportion of time spent on unpaid domestic and care work. While the article does not provide a specific number, it implies the use of this indicator by stating that “women work more hours per week than men, but they spend more hours in unpaid work,” indicating that the time spent on such activities is being measured and compared between genders.

SDGs, Targets and Indicators Table

Source: euronews.com