Germany’s persistent gender pay gap remains stubbornly unchanged in 2024, with women earning, on average, 16 percent less per hour than their male counterparts, according to data released Tuesday by the Federal Statistical Office (Destatis). This stagnation highlights a deeply ingrained systemic issue despite ongoing efforts to promote equality.
The raw, or unadjusted, gender pay gap demonstrates a disparity of €4.24. Women’s average gross hourly wage stood at €22.81 compared to men’s €27.05. While regional variations exist, with a comparatively lower gap of 5 percent in eastern Germany versus 17 percent in the western states, the overall picture remains concerning. The methodology adheres to the standard definition employed by Eurostat, excluding the agricultural, forestry, fishing, public administration, defense and social security sectors. Inclusion of the latter elevates the overall unadjusted pay gap to 15 percent.
A significant contributing factor to the lower eastern German figure is the comparatively smaller pay disparity within the public sector. An unadjusted gender pay gap of just 4 percent was recorded in the public sector (encompassing public administration, defense, social security, education and instruction), starkly contrasting with the 17 percent gap prevalent in the private sector. This reveals a private sector wage structure exhibiting more than four times the relative income disparity.
Statistical modeling attributes roughly 60 percent of the observed pay gap to factors considered within the analysis. Part-time work, disproportionately undertaken by women, accounts for a substantial portion of this, responsible for 19 percent (€0.81) of the total difference. Women’s prevalence in lower-paying industries and occupations contributes another 18 percent (€0.75), while the required skill level for their roles explains approximately 13 percent (€0.55).
However, a remaining 40 percent (€1.71 of the €4.24 total) remains unexplained. This “residual” – representing a remaining 6 percent – indicates that even when factoring in profession, qualifications and career progression, women earn demonstrably less than their male counterparts. In western Germany, this adjusted gap stands at 6 percent, increasing to 9 percent in eastern Germany.
Destatis cautions that this residual figure likely represents an upper limit on potential gender-based wage discrimination. The agency acknowledges that further analysis incorporating data on career interruptions due to pregnancy, childbirth and caregiving responsibilities would likely shrink this gap further. Ultimately, the persistence of this unexplained disparity underscores the continued need for comprehensive policy interventions aimed at fundamentally reshaping the dynamics of the German labor market and addressing systemic biases that perpetuate inequality between men and women. The lack of substantial progress fuels debate about the effectiveness of existing legislation and the urgency of more proactive measures to ensure equitable compensation for equal work.