Germany’s gender pay gap was under 20% for the first time in 2019. This was an exciting accomplishment for Germany. However, it is still not adequate.
Right now Germany’s pay gap is at 19.2%. This is higher than the EU average gap, which is 14.1%. Germany has one of the highest gaps in all of Europe. In comparison, the United State’s pay gap is around 17.%. This gap is the result of long standing biases toward women that has been ingrained in Germany’s culture. Thankfully, Germany is on their way to making a change.
A new contract in Germany has been agreed upon by a new coalition under Olaf Scholz.This coalition is between the SPD, Greens, and FDP. It is a very long 178 page document with tons of new policies that they plan on implementing.
Through this coalition, Germany is aiming to close this pay gap. Additionally, Germany wants to increase wage transparency since many people in Germany have been very reluctant to discuss pay in the past. This would enforce a new rule for employers which would force them to publish their wages and report any gaps they may have. Additionally, if employers do report findings of having a wage gap, they will be required to attempt to close them. To enforce this, if employers do not cooperate they can be fined.
“We want to close the pay gap between women and men”– Traffic-Light Coalition
In addition to the initiative to close the pay gap, they have big plans to modernize their economy. Germany is increasing their minimum wage and making strides toward becoming more green.
Despite having one of the widest pay gaps throughout Europe, Germany is also one of the countries who are taking the most action. This new contract and coalition will change the lives of everyone in Germany. This contract is a huge step forward for Germany. They have long been behind the curve and are now taking the necessary steps to change the past. They are truly striving for change and are hell-bent on creating a better country for Germany’s citizens.
Fun Facts: This coalition may also include changing the voting age to 16, legalizing marijuana (which will make Germany the first European country to do so), allowing dual citizenship, and increasing immigration. Learn more.