German Federal Ministry for Family Affairs Senior Citizens Women and Youth

Germany: Equal Pay Act Adopted by Federal Cabinet

On January 11, 2017, the German Federal Cabinet has adopted the Equal Pay Act (Entgelttransparenzgesetz) submitted by the German Federal Ministry for Family Affairs, Senior Citizens, Women and Youth.

As we reported, the requirements of the Equal Pay Act as now adopted have been lessened in comparison with the preliminary ministerial draft we initially reported on, in accordance with the agreement found by the coalition committee of the German government parties.

Still, the Federal Minister for Family Affairs, Senior Citizens, Women and Youth declared the adoption of the Equal Pay Act an important breakthrough for a fair payment of women. She announced that the individual right to information, the reporting obligation and review procedure can be expected to change corporate culture in Germany.

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Proposed German Equal Pay Act May Complicate Remuneration Issues

Statistics reveal a difference of 7 percent between the remuneration paid to men and that paid to women with the same qualifications in Germany. The average hourly wage even shows a difference of 22 percent, making pay discrepancy in Germany one of the highest in the EU. In order to adjust these wage injustices, the German Federal Ministry for Family Affairs, Senior Citizens, Women and Youth submitted a first preliminary ministerial draft of the German Equal Pay Act (Entgeltgleichheitsgesetz) on December 9, 2015. The act is expected to be adopted in 2016.

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