The gender pay gap refers to the percentage difference between the average gross hourly earnings of women and men. In Germany, the unadjusted gender pay gap in 2024 stands at 16 percent – meaning women earn an average of €4.10 less per hour than men. The adjusted figure (for the same job and qualifications) is 6 percent.
What Is the Gender Pay Gap? – Definition
The gender pay gap measures the difference between the average gross hourly earnings of women and men. It is considered the key indicator for earnings inequality between genders and is published annually by the Federal Statistical Office (Statistisches Bundesamt) in Germany.
The calculation follows a simple formula: the average gross hourly earnings of men minus the average gross hourly earnings of women, divided by men's earnings, multiplied by 100. The result shows by what percentage women earn less on average.
The term originally comes from Anglo-American labor market research and has become established internationally as a standard metric. In Germany, the gender pay gap has been systematically recorded and analyzed since 2006.
Adjusted vs. Unadjusted – The Difference Explained
When discussing the gender pay gap, it's important to distinguish between two key metrics that are often confused:
Unadjusted Gender Pay Gap
The unadjusted gender pay gap compares the average earnings of all employed women and men – without accounting for differences such as occupation, industry, qualifications, or working hours. It reflects the overall structural situation in the labor market and stands at 16 percent in Germany in 2024.
The unadjusted figure is higher because it also captures structural factors: women more often work in lower-paying industries (e.g., care work, education), more frequently work part-time, and less often hold leadership positions.
Adjusted Gender Pay Gap
The adjusted gender pay gap compares only women and men with comparable jobs, qualifications, professional experience, and working hours. It shows the pay gap under otherwise equal conditions and stands at 6 percent in Germany in 2024.
According to the Federal Statistical Office, the adjusted figure is considered the "upper limit" for potential direct pay discrimination by employers. It could be even lower if additional factors such as career breaks for parental leave were taken into account.
Both figures are important: the unadjusted one reveals societal structures, while the adjusted one indicates possible discrimination for equal work.
Gender Pay Gap in Germany – Current 2024 Figures
Trends and Development
According to the Federal Statistical Office, the unadjusted gender pay gap fell from 18 percent to 16 percent in 2024 – the largest decline since calculations began in 2006. In concrete terms, this means:
- Women earn an average of €22.24 gross per hour
- Men earn an average of €26.34 gross per hour
- Difference: €4.10 per hour
The decline is primarily due to stronger growth in women's earnings: women's gross monthly earnings rose by approximately 8 percent compared to the previous year, while men's earnings increased by only 5 percent.
East-West Comparison
The gender pay gap varies significantly by region:
- Eastern Germany: 5 percent (unadjusted)
- Western Germany: 17 percent (unadjusted)
The reasons for this difference are historical, rooted in higher female labor force participation in the former GDR and different industry structures.
Germany in EU Comparison
At 16 percent, Germany is significantly above the EU average of approximately 12 percent (as of 2023). Countries like Belgium (0.7 percent), Italy (2.2 percent), and Romania (3.8 percent) show considerably smaller pay gaps. In Luxembourg, women actually earned about one percent more than men in 2022.
Causes of the Gender Pay Gap
Structural Factors
The largest portion of the pay gap (approximately 63 percent of the unadjusted GPG) can be attributed to structural differences:
- Career choices: Women more often work in lower-paying occupations and industries such as nursing, education, or retail (horizontal segregation)
- Part-time work: Women work part-time significantly more often than men, which leads to lower hourly wages and fewer career opportunities
- Career interruptions: Family-related breaks for childcare or caregiving predominantly affect women
- Leadership positions: Women are underrepresented at management levels (vertical segregation)
Unconscious Bias in Recruiting and Promotions
Beyond structural factors, unconscious bias plays a role. Studies show that identical CVs are evaluated differently depending on whether they bear a male or female name. These biases can affect hiring decisions, salary negotiations, and promotions.
Stereotypes and gender bias in personnel selection also contribute to women being less frequently considered for certain positions or salary levels.
Pay Transparency Act and EU Directive 2026
Current Regulations
The German Pay Transparency Act (Entgelttransparenzgesetz, EntgTranspG) has been in effect since July 2017. It aims to enforce the principle of equal pay for equal or equivalent work and contains three central instruments:
- Individual right to information (from 200 employees): Employees can learn the criteria by which their salary is determined and how the comparative pay of the other gender looks.
- Company audit procedures (from 500 employees): Employers are encouraged to regularly review their pay structures for compliance with pay equality.
- Reporting obligation (from 500 employees): Companies required to file management reports must regularly report on the status of equality and pay equity.
In practice, the law is criticized as ineffective, as these instruments are only used sparingly.
What Changes in 2026?
The EU Pay Transparency Directive (2023/970) must be transposed into national law by June 7, 2026, and brings significantly stricter requirements:
- Pay transparency in the application process: Employers must inform applicants of the salary range or starting salary – ideally already in the job advertisement
- Ban on salary history questions: It will no longer be permitted to ask applicants about their current salary
- Right to information for all: Employees gain the right to information about their own salary and average salaries for comparable positions
- Reporting obligation from 100 employees: The threshold drops significantly (from the previous 500)
- Reversal of burden of proof: If pay discrimination is suspected, employers must prove that no discrimination occurred
- Compensation: Those affected are entitled to damages for violations
For HR departments, this means: salary structures must be transparently and comprehensibly documented – now is the right time to prepare.
What Can Companies Do?
Measures for HR
To reduce the gender pay gap within their own organization, HR professionals can apply various levers:
- Conduct pay audits: Regularly check whether there are gender-specific salary differences for comparable positions. If anomalies are found: analyze causes and make adjustments.
- Establish transparent salary structures: Define and communicate clear salary bands for positions. This creates accountability and reduces negotiation disadvantages.
- Offer flexible working models: Enable part-time work even in leadership positions, explore job-sharing models, promote work-life balance for all genders.
- Promote women in leadership positions: Establish targeted development programs, mentoring, and transparent promotion criteria.
- Implement objective selection processes: The pay gap already begins in recruiting – when hiring decisions are based on subjective impressions rather than measurable competencies, the risk of unconscious discrimination increases. Companies like Lufthansa and OMR use scientifically validated assessments to reduce bias – with measurable success in team diversity. The digital platform Aivy supports this with validated assessments that evaluate candidates objectively based on competencies and potential rather than gut feeling.
- Implement regular reporting: Measure, document, and track progress on your own gender pay gap – even independent of legal obligations.
Frequently Asked Questions About the Gender Pay Gap
How large is the gender pay gap in Germany in 2024?
The unadjusted gender pay gap stands at 16 percent in 2024 – a historic low. The adjusted figure (for the same job and qualifications) is 6 percent. In absolute terms: women earn an average of €22.24 gross per hour, men €26.34.
What is the difference between the adjusted and unadjusted gender pay gap?
The unadjusted gender pay gap compares all workers without adjustments and shows the overall structural situation (16 percent). The adjusted figure compares only women and men with the same job, qualifications, and professional experience, showing the "true" pay gap under equal conditions (6 percent).
Why is the gender pay gap lower in Eastern Germany?
In Eastern Germany, the unadjusted GPG is only 5 percent, compared to 17 percent in Western Germany. The reasons are historical: higher female labor force participation in the GDR, less traditional gender role distribution, and a different industry structure with fewer industrial corporations that typically show high salary differentials.
When is Equal Pay Day 2025?
Equal Pay Day 2025 falls on March 7. It symbolically marks the day until which women work "for free" while men have been paid for their work since January 1. The 2025 motto is: "Because it's worth it – pay transparency now!"
What does the Pay Transparency Act contain?
The Pay Transparency Act (since 2017) gives employees in companies with 200+ employees the right to request information about the comparative pay of the other gender. Companies with 500+ employees must also regularly review pay structures and report on the status of equality.
What changes with the EU Directive in 2026?
From June 2026, stricter rules apply: salary information must be transparent already in the application process, the reporting obligation applies from 100 (instead of 500) employees, and if pay discrimination is suspected, the burden of proof lies with the employer. Those affected are entitled to compensation.
Which industries have the highest gender pay gap?
Particularly large pay gaps are found in industries with high male representation and strong hierarchies, such as finance and insurance, manufacturing, and technical fields. Smaller differences are seen in the public sector and in areas covered by collective agreements.
How can my company reduce the gender pay gap?
The most important measures are: conduct regular pay audits, establish transparent salary structures, use objective selection processes in recruiting, offer flexible working models, and specifically develop women for leadership positions.
Conclusion
The gender pay gap remains an important indicator of earnings inequality in Germany. At 16 percent (unadjusted), the pay gap reached a historic low in 2024, but still lies significantly above the EU average. The upcoming EU Pay Transparency Directive will create much more accountability from 2026 – from pay transparency in the application process to the reversal of the burden of proof in discrimination cases.
For HR professionals, this means: now is the right time to analyze salary structures, create transparency, and establish objective selection processes. Those who act early not only avoid legal risks but also position themselves as attractive employers for all talent.
Want to promote equal opportunities already in recruiting? Learn more about objective assessment with Aivy
Legal notice: This article is for general information purposes and does not constitute individual legal advice. For specific questions about the Pay Transparency Act or the EU Directive, please consult a lawyer specializing in employment law.
Sources
- Federal Statistical Office (Destatis): Gender Pay Gap drops from 18% to 16% in 2024 compared to previous year. Press release, February 2025. https://www.destatis.de/DE/Presse/Pressemitteilungen/2025/02/PD25_056_621.html
- Pay Transparency Act (Entgelttransparenzgesetz, EntgTranspG). Federal Ministry of Justice, 2017 (last amended 2021). https://www.gesetze-im-internet.de/entgtranspg/
- EU Pay Transparency Directive 2023/970. European Parliament and Council, 2023. https://eur-lex.europa.eu
- Federal Ministry for Family Affairs, Senior Citizens, Women and Youth (BMFSFJ): Gender Pay Gap drops from 18 percent to 16 percent in 2024. 2025. https://www.perspektiven-schaffen.de
- WSI (Hans Böckler Foundation): Gender Pay Gap 2006-2024. GenderDatenPortal, 2025. https://www.wsi.de/de/einkommen-14619-gender-pay-gap-14932.htm
- Federal Agency for Civic Education: Earnings differences between men and women. Social Report 2024. https://www.bpb.de/kurz-knapp/zahlen-und-fakten/sozialbericht-2024/553154/
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