Indicator 5.20 Gender pay gap in unadjusted form

The indicator measures the difference between average gross hourly earnings of male paid employees and of female paid employees as a percentage of average gross hourly earnings of male paid employees. The indicator has been defined as unadjusted, because it gives an overall picture of gender inequalities in terms of pay and measures a concept which is broader than the concept of equal pay for equal work. All employees working in firms with ten or more employees, without restrictions for age and hours worked, are included. The gender pay gap is based on the methodology of the structure of earnings survey (SES), which is carried out every four years.

Indicator is used to monitor progress towards SDG 5 on gender equality, which is embedded in the European Commission’s Priorities under ‘Supporting people, strenghtening our societes and our social model’. Indicator can be considered as similar to global SDG indicator 8.5.1 “Average hourly earnings of female and male employees, by occupation, age and persons with disabilities”. It is included as a secondary indicator in the Social Scoreboard for the European Pillar of Social Rights.

The EU Gender Equality Strategy commits to achieving a Union of Equality and presents policy objectives and actions to make significant progress by 2025 towards a gender-equal Europe, where women and men, girls and boys, are free to pursue their chosen path in life and have equal opportunities to thrive. The key objectives are ending gender-based violence; challenging gender stereotypes; closing gender gaps in the labour market; achieving equal participation across different sectors of the economy; addressing the gender pay and pension gaps; closing the gender care gap and achieving gender balance in decision-making and in politics. Equal pay for equal work is one of the European Union’s founding principles, embedded in the Treaties since 1957. Article 157 of the Treaty on the Functioning of the European Union provides that each Member State shall ensure that the principle is applied. Directive 2006/54/EC enshrines the principle of equal pay. Closing the gender pay gap is also one of the objectives of the Commission’s Strategic engagement for gender equality as well as the European Pillar of Social Rights.

The long-term objective for this indicator is a value of 0