MEPs demand action plan to eradicate the gender pay and pension gaps 

This article is brought to you in association with the European Parliament.

• Women increasingly outperform men in education, but are generally lower paid and undervalued 
• Disproportionate share of unpaid care and domestic work carried out by women 
• EU action plan needed to improve working conditions, fair pay in women-dominated sectors, and childcare services 

The European Parliament wants an action plan to strengthen women’s work-life balance and improve working conditions and fair pay in women-dominated sectors.

In their report, adopted by 458 votes in favour, 72 votes against, and 98 abstentions, MEPs say jobs in women-dominated sectors are generally lower paid and undervalued, despite younger women increasingly outperforming younger men in education. Improving the labour market participation and working conditions of women could, they argue, help address skills and labour shortages and improve the EU’s productivity and growth.

Eradicating the gender pay and pension gaps

Parliament wants the Commission to present an action plan to eradicate the gender pay and pension gaps. The action plan should include targeted measures to improve working conditions and fair pay in women-dominated sectors. It should prioritise investment under the next EU long-term budget to strengthen women’s work-life balance and provide for a reliable care sector.

Women are responsible for a disproportionate share of unpaid care and domestic work. This reduces their labour market participation and pension accrual and is one of the main reasons for the gender pay and pension gaps. Insufficient investment, high costs and a lack of quality child and long-term care services prevent women from participating fully in the labour market, the report says. This can hinder career progression and result in women being obliged to take part-time rather than full-time work or to leave work altogether. MEPs point out that periods of absence from employment because of caring responsibilities do not count when it comes to accruing pension entitlements, even though it saves the state significant costs.

Closing the childcare gap could improve the lives of new parents across Europe and more support could significantly strengthen the ability of parents to remain in the labour market. MEPs want member states to encourage men to use their parental leave, and to promote non-transferable, adequately paid paternity leave.

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Irena Joveva (Renew, SI), rapporteur for the Employment and Social Affairs Committee, said: “Much has been done in the EU to achieve equal pay for equal work. We have however still not eradicated persistent gender inequality. Our report outlines needed actions and measures – some are enforcement, others new. But all should be supported with EU funds. Now it is up to member states to follow through, as implementation is crucial for achieving equality and a more just society.”

Mirosława Nykiel (EPP, PL), rapporteur for the Women’s Rights and Gender Equality committee, said: “In 2023, the gender pay gap in the EU was 12%. Women still earn less than men, nearly 28% of women work part-time. And this is often not a choice, but a consequence of a lack of access to childcare and care for relatives. Women work on average between 54 and 67 days a year for free. And if we add unpaid work at home, cooking and organising family life, this amounts 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 is 25.4%. Europe needs to provide real support for women through practical decisions and policies.”

Background

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