They do the same job, have the same qualifications, and perform at the same level—yet they still earn less than their male colleagues. This is the reality for millions of women in Germany. Although the gender pay gap—the difference in pay between men and women—has narrowed by two percentage points compared to last year, at 16 percent, women still earn significantly less than men on average.
One day in November is meant to highlight this inequality: Statistically speaking, women have to work until the end of the year to earn the same amount that men already have in their wallets by November 4.
Same job. Same performance. Less money.
The causes of this persistent inequality are manifold: Women are more likely to work in industries and roles that pay less, are less likely to hold leadership positions, and are more likely to reduce their working hours due to caregiving responsibilities. Yet even when performing comparable work and possessing comparable qualifications and education, women earn, on average, six percent less than their male colleagues.
Collective Bargaining Agreements as a Guarantee of Equality
The good news: In companies in the metal and electrical industries that are bound by collective bargaining agreements, the pay gap is significantly smaller than in companies not bound by such agreements. This was revealed by a special analysis conducted by the Federal Statistical Office for IG Metall. According to the analysis, women covered by a collective bargaining agreement earn 10.55 euros more per hour than their female colleagues not covered by such an agreement. This shows that collective bargaining agreements work—and have a lasting impact!
This is because IG Metall’s collective bargaining agreements are based on the principle of equal pay or equal salary for equal work. This effectively rules out gender-based inequality from the outset. Works councils monitor the hiring process and job classification. They step in when, for example, job duties have changed but the job classification has not been adjusted accordingly.
Setting the Course Within the Company
In addition to collective bargaining agreements, there are several other levers at the workplace level that can be used to bring about changes toward greater equity. For example, it has been shown that in workplaces that implement gender equality measures, the pay gap is smaller. These measures can take many different forms: improved childcare options are just as effective here as more targeted support for young female talent, for example through mentoring programs. Good collective bargaining solutions, such as additional days off under collective bargaining agreements (T-ZUG), also help with work-life balance.
Finally Closing the Pay Gap
However, to make progress on pay equity, steps must also be taken in other areas. In addition to increasing collective bargaining coverage, Germany must transpose the EU Pay Transparency Directive into German law by June 2026.
Among other things, the directive stipulates that companies with more than 100 employees must in the future regularly report and publish data on the pay gap between men and women. All employees and their representatives will also have the right to receive information on the average wage levels of people performing the same or equivalent work, broken down by gender. And if employers fail to meet their obligations, those affected have the right to seek compensation.
A commission is already working on specific proposals for implementation. The legislative process will follow.
