The EU must act to close the gender pay and pension gap

In a report approved by 458 votes to 72, with 98 abstentions, Parliament points out that jobs in female-dominated sectors are generally worse paid and undervalued, despite the fact that younger women are increasingly outstripping men in education. The European Parliament argues that increasing women’s participation in the labour market and improving their working conditions would help alleviate the shortage of skilled workers, as well as boost productivity and growth in the EU.

Eradicating the pay and pension gap

The plenary calls on the Commission to draw up an action plan to close the gender pay and pension gap. According to MEPs, this strategy should include specific measures to improve working conditions and ensure fair pay in sectors with a higher proportion of women. They also advocate investment in the next long-term EU budget to strengthen work-life balance and promote a reliable care sector.

The text emphasises that women are responsible for a disproportionate share of unpaid care and domestic work. This phenomenon reduces their participation in the labour market and, consequently, their pension accrual, and is one of the main reasons for the gender pay and pension gap, MEPs say. The report also explains that insufficient investment, high prices and a lack of quality childcare services hinder women’s participation in the labour market. This can hinder their career progression and lead women to work part-time rather than full-time or to leave work altogether. MEPs also warn that periods of absence to provide care do not count towards pensions, even though such work represents considerable savings for the public purse.

MEPs believe that closing the childcare gap would improve the quality of life for new parents in Europe, while greater support would significantly facilitate their continued participation in the labour market. Parliament urges Member States to encourage men to take parental leave and to promote non-transferable and adequately paid paternity leave.

Statement by the rapporteurs

“The EU has made progress towards equal pay for equal work. However, we have not yet eradicated persistent gender inequality. Our report outlines the necessary actions and measures; in some cases, it is a matter of enforcing the law, and in others, we need new measures. But all of them must be supported with EU funds. It is now up to the Member States to move forward, as implementation is crucial to achieving equality and a fairer society,” said Irena Joveva (Renew, Slovenia), rapporteur for the Parliament’s Committee on Employment and Social Affairs.

“In 2023, the pay gap in the EU was 12%. Women still earn less than men and almost 28% work part-time. This is often not by choice, but a consequence of a lack of access to childcare and family care. Women work on average between 54 and 67 days a year for free. And if we add unpaid work in the home, cooking and organising family life, this equates to more than 8 additional weeks of work per year. The effects can be seen in the average pension gap between women and men in the EU, which stands at 25.4%. Europe must provide real support to women through practical decisions and policies,” said Mirosława Nykiel (EPP, Poland), rapporteur for the Committee on Women’s Rights and Gender Equality.

Background

The gender pay gap is defined as the difference between the average gross hourly earnings of men and women. This gap cost the EU €390 billion in 2023. Women’s earnings in the EU are significantly lower than men’s: in 2023, women worked 54 to 67 days a year without pay compared to men. In 2024, 16.9% of retired women were at risk of poverty, almost double the percentage of men.

More information: European Parliament