Observation (CEACR) - adopted 2024, published 113rd ILC session (2025)

Equal Remuneration Convention, 1951 (No. 100) - Germany (Ratification: 1956)

The Committee notes the observations of the German Confederation of Trade Unions (DGB) received on 31 August 2023.

Article 2 of the Convention. Wage transparency. Referring to its previous comments, the Committee notes the Government’s indication, in its report, that several actions have been implemented to raise awareness and support companies in the implementation of the Act promoting remuneration transparency between women and men (Transparency of Remuneration Act), 2017, as amended (EntgTranspG). As regards the thresholds set by the Act for the application of its provisions, the Government states that, in 2021, there were 21,300 companies with 200 or more workers and 7,416 companies with 500 or more workers in Germany. The Government adds that the Federal Labour Court (BAG) strengthened the principle of equal pay set in the Act through several landmark judgments, in particular on 16 February 2023 when it ruled that the right to equal pay for work of equal value between men and women stands irrespective of different negotiation tactics used by employees or the fact that the male employee followed a higher-salaried employee who previously occupied the position (judgment 8 AZR 450/21). The Government adds that the second evaluation of the effectiveness of the Act was carried out in August 2023 and will serve as a basis for the planned improvement of the law, in particular to ensure the transposition of the European Union (EU)’s Pay Transparency Directive into the national legislation by 7 June 2026. In that regard, the Committee notes that, in its observations, the DGB states that the Transparency of Remuneration Act is inconsistently structured in crucial areas and falls short of the requirements to achieve its actual aim. In DGB’s views, key findings of the second evaluation of the effectiveness of the Act are that: (1) awareness of the Act is declining; (2) differing information is provided to employers and works councils, showing that in-company processes have still not been clarified; and (3) the majority of firms are failing to fulfil their reporting obligations. As a result, the DGB calls for mandatory remuneration evaluation procedures, as well as an expansion of the scope of the Act in correlation with the provisions of the EU Pay Transparency Directive which includes provisions: (1) to enforce reporting obligations and evaluation procedures; (2) to expand the reporting obligations to companies with more than 100 workers; and (3) to grant all workers the right to request information. The Committee trusts that the Government will pursue efforts to raise awareness of and enhance effective compliance with the Transparency of Remuneration Act, in particular as regards companies’ reporting obligations. It asks the Government to provide information on: (i) any adjustments made to the Transparency of Remuneration Act as a result of the second evaluation of the effectiveness of the Act, including with a view to widening its scope to implement the EU Pay Transparency Directive; (ii) any assessment made of the level of compliance with the statutory reporting requirements on gender equality and equal pay at the company level; as well as (iii) any actions taken to enhance the implementation of the Act, including by raising awareness of workers, employers and their respective organizations about its provisions and remedies available, and address gender wage gaps revealed.

Articles 2 and 3. Assessing and addressing the gender pay gap. The Committee notes from the statistical information provided by the Government, that, in 2022, the hourly gender pay gap remained high, being estimated at 19 per cent in the private sector, compared to 6 per cent in the public sector. Significant variations persist between the regions (19 per cent in the western part of the country, compared to 7 per cent in the eastern part). Furthermore, in 2022, pay differentials between men and women were still particularly wide in scientific and technical activities (27 per cent), financial and insurance services (27 per cent), information and communication (22 per cent) and manufacturing (21 per cent). As regards occupational groups, in the private sector, the hourly gender pay gap was as high as 29 per cent for managers, 24 per cent for technicians and associate professionals, and 21 per cent for professionals. The Government states that the gender pay gap is largely due to family breaks and long-term part-time work. Family-related interruptions in employment are the main cause of derailed career trajectories with consequences for qualifications, earned income and retirement security. The Committee refers, in that regard, to its comments made on the application of the Discrimination (Employment and Occupation) Convention, 1958 (No. 111), on occupational gender segregation and reconciliation of work and family responsibilities. It notes the Government’s indication that several awareness-raising actions on the causes of the gender pay gap and possible courses of action have been continued but regrets the lack of information on the results of the “Promoting Equal Pay – Advising, Supporting, Strengthening Businesses” programme that ended in 2023. The Government states that the Equal Pay Award was presented for the second time in April 2023 to companies using innovative concepts to ensure equal pay in practice. The Committee notes that, in its observations, the DGB highlights the persistence of the high gender pay gap, the need for a stronger commitment from the Federal Government on this issue, as well as the need for the topic of equal pay to be broadly anchored in society through awareness-raising activities, in particular with a view to better enhancing equal distribution of care work between partners. The DGB states that the lower working hours of women compared to men, together with the different pay rates in professions and industries, are major causes of the gender pay gap. In that regard, the Committee notes with concern that: (1) the gender pay gap in Germany only slightly decreased by 1 percentage point since 2019 and remains one of the highest in the European Union (5 percentage points above the European Union average in 2022); and (2) even with the same formal qualifications and otherwise the same characteristics, the statistically measurable difference in pay was still 7 per cent, which can be considered as an indication of latent discrimination against women in the labour market. The Committee notes that, in its 2023 concluding observations, the United Nations (UN) Committee on the Elimination of Discrimination against Women (CEDAW) also expressed concern about: (1) the persistently large gender pay gap; (2) women’s concentration in the lower-paid service sectors and temporary and part-time work, owing to their traditional role as caregivers for children and older family members; and (3) the gender pension gap which reached almost 30 per cent in 2021 (CEDAW/C/DEU/CO/9, 31 May 2023, paragraph 43). The Committee therefore urges, once again, the Government to strengthen its efforts to eliminate the gender pay gap, including by addressing the differences in remuneration that may be due to gender discrimination. It asks the Government to provide information on: (i) the specific measures implemented to that end as well as to address gender disparity in pensions; (ii) any assessment made of the impact of such measures and any initiative undertaken as a follow-up, including in collaboration with the social partners; and (iii) statistical information on the earnings of men and women, disaggregated by economic activity and occupation, both in the public and private sectors.

The Committee is raising other matters in a request addressed directly to the Government.