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EU women lose €358 billion annually due to gender pay gap

Created at 23 Jul · 5:11 AM1 source↑ Market-relevant
IN SHORT

Women in the EU lose an estimated €358 billion annually due to the gender pay gap, with the average woman earning nearly €3,900 less than men each year. This disparity persists as many European countries missed the deadline for the EU's Pay Transparency Directive.

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Key Numbers

€358 billionannual loss for EU women due to pay gap
€3,900average annual pay loss per woman
11.1%gender pay gap in gross hourly earnings
€88.9women's earnings for every €100 earned by men
92.5 millionwomen working in the EU
43 millionfemale workforce covered by Pay Transparency Directive
€5,000+annual loss for women in Finland, Austria, Germany, Sweden
-0.8%gender pay gap in Luxembourg
18.8%gender pay gap in Estonia

Who's Involved

European Trade Union Confederation (ETUC)
provided estimates on gender pay gap losses
Esther Lynch
General Secretary of ETUC, commented on pay transparency
Isabelle Schömann
Deputy General Secretary of ETUC, warned of legal action
Eurostat
source of gender pay gap data
EU women lose €358 billion annually due to gender pay gap

↳ Why This Matters

The persistent gender pay gap in the EU results in substantial financial losses for millions of women, impacting their economic security and highlighting the need for effective implementation of pay transparency measures.

Key facts

  • Women working in the EU collectively lose over €358 billion annually due to the gender pay gap.
  • The average woman is paid almost €3,900 less than men per year in the EU.
  • Women's gross hourly earnings are on average 11.1% less than men's.
  • Luxembourg is the only EU country where women earn more than men.
  • Most EU member states missed the 7 June 2026 deadline for the EU's Pay Transparency Directive.

Women working in the European Union are losing an estimated €358 billion annually due to the gender pay gap, which translates to nearly €3,900 per person. This significant financial disparity persists as several member states failed to meet the deadline for the bloc's Pay Transparency Directive.

According to Eurostat data, women's gross hourly earnings in the EU are, on average, 11.1% lower than men's. This means for every €100 a man earns, a woman earns €88.9. The European Trade Union Confederation (ETUC) estimates that the 92.5 million women employed in the EU collectively lose over €358 billion each year.

"The cost of pay transparency measures are small for companies but this analysis shows that inaction by national governments will cost women workers billions in lost wages,” stated ETUC General Secretary Esther Lynch. The Pay Transparency Directive, which covers businesses with at least 100 employees, aims to address this issue. However, most EU countries missed the 7 June 2026 deadline for its implementation.

Luxembourg stands out as the only EU country where women earn more than men, with an average annual gain of approximately €474. In contrast, countries like Finland, Austria, Germany, and Sweden show the highest annual losses for women, exceeding €5,000. Other countries with losses above the EU average include Estonia, France, Czechia, and Ireland.

ETUC estimates suggest that even a 10% reduction in the gender pay gap could lead to average annual gains of €672 for employed women. France and Ireland could see the highest gains, while Poland would experience the lowest due to its smaller existing gap. ETUC Deputy General Secretary Isabelle Schömann warned that governments avoiding their legal responsibilities regarding the directive could face legal action.

Frequently asked questions

The gender pay gap in the EU is the difference between the average gross hourly earnings of men and women. Currently, women earn 11.1% less than men on average.

Women in the EU lose an estimated €358 billion collectively each year, which amounts to nearly €3,900 per woman annually.

Estonia has the largest gender pay gap at 18.8%, while Luxembourg is the only country where women earn more than men, with a gap of -0.8%.

The EU's Pay Transparency Directive aims to boost salary transparency and tackle the gender pay gap. It was due to take effect by June 7, 2026, but most member states missed this deadline.

What Happens Next

01Governments that continue to avoid implementing the Pay Transparency Directive may face legal action.
02Further analysis on the impact of reduced gender pay gaps on women's earnings is expected.

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Cadence

How It Developed

Women in the EU lose €358 billion annually due to the gender pay gap.
The average woman earns €3,900 less than men per year in the EU.
Women's gross hourly earnings are 11.1% less than men's.
Luxembourg is the only EU country where women earn more than men.
Several European countries missed the deadline for the EU's Pay Transparency Directive.
A 10% reduction in the gender pay gap could result in average annual gains of €672 for employed women.
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Sources

T1
Cost of pay gap in the EU: Women earn €3,900 less than men a yearEuronews

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