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EQUAL SALARY

We Need To Talk About The Gender Pension Gap

Oct 12, 2022
Bethany Carter
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According to the Global Gender Gap Report 2022, it will take another 132 years to close the global gender gap.

These are difficult times in a post-pandemic world. As crises are compounding, women’s workforce outcomes are suffering and the risk of global gender parity backsliding further intensifies.

Hundreds of people recently gathered in the Swiss capital, Bern, to hold a protest after the results of a referendum raised the retirement age for women from 64 to 65. A very slim majority of Swiss voters – 50.6 per cent – supported the change, which is intended to bolster a struggling pension system.

Women in Switzerland currently earn 43.2 per cent less than men and draw less pension due to higher rates of part-time work. Switzerland ranks among the worst European states for the gender income gap.

In the EU, according to EIGE 2020 Index, women’s pension gap reaches 37 %. The gender pension gap (GGP) is not only a problem of pension system design. Pension systems add inequalities happening over a person’s lifetime. As pointed out by the European Commission, gender gaps in pensions reflect the gender gaps in remuneration, working hours and years of employment of women. Household and caring duties relating to children and older relatives fall mostly upon women who, as a result, experience more career interruptions and hold part-time jobs more often than men

The motherhood penalty also plays a part. New research from Aviva has found that the Gender Pension Gap begins to widen significantly from the age of thirty-five when women often opt to work part-time to accommodate childcare arrangements.

Something has to be done.

The United Kingdom, for example, is starting to take steps to reduce its gender pension gap with experts urging the government to implement initiatives such as improving pay rates for low earners, improving affordable child care, introducing catch-up provisions for pension contributions and insuring equitable pension rights are part of divorce settlements amongst others.

 

The situation is dire and often overlooked.

Wherever you stand on the debate about retirement age, we can all agree that it is fair and right for employees to receive equal pay for equal work and enjoy a decent pension.

At EQUAL-SALARY Foundation, we strongly believe that equal pay is a basic human right.

The EQUAL-SALARY methodology was designed to allow companies around the world, in every field, to address the difference between inequality and discrimination, to ensure all employees are paid equally for the same work.

Are you ready to take a stand?

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