Although Equal Pay Day has passed, the conversation about equal pay is far from over. New figures show that while the wage gap is shrinking, it still costs an enormous amount of money each year. The difference may feel smaller than in the past, but the annual impact remains gigantic, largely because many causes are deeply rooted in the labor market.
Statistics Netherlands (CBS) shows that women earn an average of 10.5 percent less per hour than men. This is a significant improvement compared to the 19 percent gap in 2010. However, the annual income gap remains enormous, with women earning 32 percent less, primarily because they work fewer hours.
Why the Gap is Narrowing, But Not Disappearing #
The wage gap is shrinking faster due to a notable factor: the increase in the minimum wage. Since more women are in low-paying jobs, they benefit relatively more from this change.
As a result, Equal Pay Day was pushed to November 24 this year, ten days later than the previous year. A symbolic victory, but according to experts, not proof that discrimination is being addressed.
CBS economist Peter Hein van Mulligen observes that young women are in a stronger position in their first jobs due to their high level of education. However, once work experience and family situations come into play, men pull ahead again.
This moment often coincides with having children. Women more frequently reduce their hours and see their hourly wage decrease, while the wages of young fathers actually rise. This so-called “motherhood penalty” remains a key driver of the income gap.
Large Differences Between Sectors, But New Law is Coming #
CBS data also shows that the wage gap varies significantly by sector. In public administration, near-complete equality has been achieved, while in the financial sector, women earn up to 20 percent less.
Nevertheless, there is a glimmer of hope: in 15 percent of the largest companies, women earn more than men on average, a threefold increase since 2010. This trend is growing especially in public administration.
Starting in 2027, the new European Gender Pay Directive will require companies to disclose wage differences. If the gap is above 5 percent, an organization must take action. Economists like Gerarda Westerhuis emphasize that transparency is crucial, as much inequality arises unconsciously.
According to the FNV trade union, women miss out on at least €1.9 billion annually. The wage gap is shrinking, but not fast enough. Yet, the CBS figures point to one thing: with targeted legislation and a changing labor market, true equality is no longer a distant dream, but a matter of pace.