Reasons behind the pay gap between women and men
Women in Switzerland earn considerably less than men – and the difference can only be partially explained by objective factors. Lower wages result in less economic independence for women and losses in retirement provision.
On average, women earn 1364 francs or 16.2 per cent per month less than men (based on the mean). The pay gap increases over the course of their lifetime: it is low at the start of a career, then increases continuously before reaching its maximum before retirement.
More figures – Statistics at the FSO
The Confederation is involved in many efforts to ensure equal pay.
Explained and unexplained pay gap
51.8 per cent of the pay gap of 1364 francs can be explained: This difference can be attributed to factors such as occupation, sector, education or professional position. The remaining difference of 657 francs is the unexplained pay gap. In the public sector, the unexplained share of the pay gap is 623 francs per month, while it is 753 francs in the private sector.
The unexplained pay gap may constitute gender-related pay discrimination.
Pay discrimination is when women and men are not paid equally for work of equal value. Work is considered to be of equal value if the extent of its requirements and workload are comparable. The concept of equality in this area is not limited to similar work, it can also refer to completely different occupations.
What are the consequences of the pay gap?
Pay inequality has numerous negative consequences, at both the individual and national economic levels:
- Equal pay for work of equal value is an important prerequisite for ensuring that women get into, get back into and stay in the labour market. If fewer women are employed, there is a lack of skilled workers on the labour market, while the state also suffers lower levels of tax revenue and social security contributions.
- Lower wages worsen the income situation in households. After the birth of children, families in particular have significantly reduced household incomes. Pay discrimination is also detrimental to the financial situation.
- Lower wages give rise to poorer retirement provision among women, whose pensions are lower, leading to higher costs as a result of support contributions that must be borne by the state.
- For companies, failure to respect for equal pay can lead to reputational damage and difficulties in recruiting skilled workers.
In 2022, the Confederation calculated the gender overall earnings gap (GOEG) for the first time, the gender-specific difference in cumulative total income over an entire working life. The calculation is based on gross earned income per hour, monthly working hours and labour market participation. The GOEG shows how much less money women in Switzerland have to get by with on average. In Switzerland, the difference is 43.2 per cent. This high value by international standards is explained by the fact that women assume responsibility for childcare in most cases and have a very high part-time employment rate. However, factors such as pay discrimination also play a role.
What are the causes of the pay gap?
There are many reasons for pay inequality. As in the past, lower recognition of occupational fields or activities considered «typically female», prejudice against women and mothers in particular and the division of roles within the family continue to play an important role.
- Sector: Women still often work in economic sectors with lower wages than typical male occupations – especially in healthcare, social services and the retail sector.
- Part-time work: The average wage depends on the work-time percentage: the lower the number of working hours, the lower the wage (extrapolated to a full-time position). Only 46 per cent of women work 90 per cent or more hours, while 86 per cent of men work full-time. Women still assume a larger share of the responsibility of caring for family and children, often leading to a lower work-time percentage and to career breaks. Reduced employment is not always voluntary, with the majority of underemployed people in Switzerland being women. The resulting lower effective work experience can make access to further training, promotion or more demanding work more difficult, leading to lower wages.
- Professional position: Women are significantly less likely to hold management positions than men. The average wage for women is therefore considerably lower, while women are also significantly less likely to enjoy special payments such as bonuses.
- Stereotype: Various international studies show that women suffer yet more losses in earnings when they become mothers (mothers disadvantaged). In contrast, most men receive a pay increase once they become fathers (fathers rewarded).
Legal situation
Questions and answers on the revision of the Gender Equality Act (GEA) at the Federal Office of Justice
Publications
Analytische Arbeitsbewertung: Eine zuverlässige, geschlechtsneutrale Grundlage zur Festsetzung von Funktionslöhnen
Only available in German and French
Auf dem Weg zur Lohngleichheit - Umsetzung der Charta Lohngleichheit: Beispiele aus Kantonen, Gemeinden und staatnahen Betrieben
Only available in English, French and Italian
Discussion paper on the discrimination potential from a legal perspective, of individual explanatory factors used to measure wage equality between women and men
Discussion paper