Malta performs best in EU gender pay gap

A new report released in Brussels on bridging the gender pay gap in the EU shows that Malta is the best performing member state.

In 2005, the latest statistical year available, Malta registered a pay gap of just four per cent, the lowest difference in the EU calculated on the average hourly pay for women and men before tax across the economy as a whole.

Other good performers in the area are Belgium and Slovenia while, on the other side of the scale, there are Cyprus and Greece with a gender pay gap of 25 per cent. According to the European Commission, women throughout the EU continue to earn an average of 15 per cent less than men.

European Employment Commissioner Vladimir Spidla called this situation absurd, especially when taking into account that more women than men hold a degree in the EU.

"The pay gap is a complex issue with multiple causes. Sometimes we see pure discrimination. But often reasons are hidden: women do more unpaid work, like taking care of the household and dependants; more women work part time and often the women-dominated sectors are on a lower pay scale. We must shift up a gear now. The only way to succeed is by getting men and women, NGOs, social partners and governments on board to tackle the problem at all levels," he said. Commission sources described the results obtained by Malta as very positive but explained that this does not in any way indicate the overall gender equality situation.

They said the gender pay gap measures only the earnings differences between men and women that are on paid employment in the labour market.

"Usually, gender pay gaps reflect labour market participation. In most countries where the female employment rate is low, like Malta's case, the pay gap is normally lower than average, which reflects the small proportion of low skilled or unskilled women in the workforce," the sources said.

At only 33.7 per cent female participation in the labour workforce, Malta is at the bottom of the EU scale. More importantly, no progress has been achieved over the past years in this area despite several incentives introduced by the authorities. In five years between 2000 and 2005, female participation in the workforce increased by just 0.6 per cent. The average EU female participation rate in 2005 stood at 56.3 per cent.

Mr Spidla said the Commission has now identified various actions to be taken by member states in the coming years in order to fight this gender deficit. These include ensuring better application of existing legislation, analysing how laws could be adapted and raising awareness, fighting the pay gap as an integral part of member states' employment policies, promoting equal pay among employers, especially through social responsibility, and supporting exchange of good practices across the EU and involving the social partners.