German Companies Urged to Close Gender Pay Gap through Transparency and Data Analysis

On Equal Pay Day 2026, attention has been drawn to the persistent gender pay gap in Germany, where women earn on average 16% less per hour than men. This wage disparity means that while men earned around 4,600 euros per month in 2025, women earned approximately 3,900 euros monthly. The pay gap also varies regionally, with East Germany, including Mecklenburg-Vorpommern, exhibiting smaller disparities compared to the West, and cities like Wolfsburg reporting larger gaps.

Henrike von Platen, founder of the Fair Pay Innovation Lab, has emphasized the critical need for German companies to actively address these gaps. She advocates that companies begin by systematically collecting and analyzing data on employee salaries and job levels to identify disparities. By understanding the factors driving pay differences, businesses can implement fair adjustments, typically involving salary increases for underpaid employees rather than cuts.

Von Platen also stresses that the focus should not be on blaming women for allegedly poor salary negotiations but on implementing systemic changes that ensure equal pay regardless of gender. Transparency in remuneration processes is highlighted as a crucial step toward achieving pay equity.

This ongoing issue echoes the principle established by the International Labour Organization back in 1951, which calls for equal pay for equal work. Practical corporate strategies such as salary data audits, transparent pay structures, and targeted salary adjustments are key to narrowing the gap. Although the broader German business landscape faces various trends and challenges, addressing pay equity remains a vital component of corporate responsibility and social progress.

As Equal Pay Day serves as a reminder, the next steps for German companies involve adopting measurable and transparent practices to close the gender pay gap, ensuring fair compensation for all employees moving forward.