Although wage discrimination has been banned in the Netherlands for nearly 50 years, it unfortunately still occurs. After decreasing for years, the wage gap has been increasing again in the last two years, according to the “National Salary Survey 2023. A worrying development, because a difference in wages between men and women in the same circumstances is nothing short of discrimination and results in great financial damage as you can read in this article.
Flevoland: leader in wage gap
In our article “Wage gap widest in Flevoland” we found that women in Flevoland earn on average 13.4% less than men. This makes the wage gap in our province the largest in the Netherlands.
FNV opened a hotline this year where women could share their experiences with unequal pay. One of the women said that at her work the subject is always a bit of a laughing matter and cannot be talked about seriously. But unequal pay is nothing to be laughed at; it has major consequences that are not adequately revealed by merely mentioning a percentage.
What does 13.4% less pay mean?
Let’s see what such a percentage means in concrete terms. That will make the problem more tangible.
In this example, we will assume a man and a woman aged 25 who simultaneously join an organization in Flevoland, for the same work. The woman’s starting salary is €1,500. That of the man is 13.4% higher: €1,701. During their careers they develop in the same way. Their salaries are indexed by 2% annually and they both work for 40 years.
This yields the following total revenues:
- Total income woman: €1.087.236
- Total revenue man: €1.232.925
Let these numbers sink in. During her career, women earn a total of as much as €145,690 less than the man.
Pay gap works its way into retirement
But the difference does not end there. The pay gap also affects pension accrual. Suppose both enjoy 18 years of retirement after their careers. Then the pension earnings are as follows:
- Total pension wife: €342.479
- Total pension man: €388.371
During her pension, the woman thus receives €45,892 less. The total revenue gap thus amounts to as much as €191.582. Almost two tons! The higher the starting salary the larger in absolute terms the difference in income is. So a woman with a starting salary of €3000 runs as much as almost € 400.000 miss. Those are shocking amounts.
Great financial loss for women
Thus, in addition to being discriminatory, the wage gap has enormous financial consequences for women. This gap not only limits their standard of living, but also has a major effect on their economic independence and well-being later in life.
So the problem of wage discrimination is much bigger than it first appears. A percentage of 13.4% may sound small, but for a starting salary of €1,500 translates into a lifetime difference of almost two tons. This shows that unequal pay is not a negligible problem, but an issue of justice and economic equality. It is time that wage discrimination is truly addressed.
Do you want to address this as an organization and need help doing so. Then contact us for our custom workshops at info@bureaugelijkebehandeling.nl
This article is part of a series of articles on Women’s Rights. Also read our other articles.
