Failing this, an administrative sanction from EUR 515 to 2,580 will be imposed and, if the failure to comply lasts for more than 12 months, there is scope to suspend any contributory benefits for one year. Companies that do not comply with these obligations are given 60 days to do so. 162 of 5 November 2021 establishes that every two years, companies that employ more than 50 employees must prepare a report on the situation of male and female personnel and send it to the Ministry of Labour, the RSA, the Regional Councilor for Equality and the Department of Equal Opportunities of the Presidency of the CdM. If discrepancies on gender pay are found, the organisation will be notified to either correct them or explain if there are objective reasons for such differences. Organisations must report salaries annually in a Social Report that includes other information on employees. The law requires all organisations to have a transparent salary policy, based on evaluation of the roles and on objective criteria, common to both genders, such as productivity or length of service. In Portugal, in 2019 a law was enforced to actually promote equal pay between genders. However, generally, reporting obligations do not come with mandatory actions to close the gap. Indeed, even though reporting does not itself reduce the gap, it is critical for companies to collect detailed figures on the salary situation in order to investigate reasons for differences and to start identifying solutions. Obligations to report the status of the gender pay gap have been introduced in many countries (both within the EU and outside) and the existing ones have been extended. Many countries have recently introduced new measures or adapted existing ones to try to reduce the gap. Although this figure does not appear reassuring, it does represent a slight four-year improvement compared to the 2021 estimate (136 years to parity). The COVID-19 pandemic has not helped: women are employed in the sectors most affected by the pandemic and the burden of increased need for family care caused by the emergency has mainly fallen to them.īased on the Global Gender Gap Report of 2022 (published on the World Economic Forum) in 2022, the global gender gap has been closed by 68.1% and at the current rate of progress, it will take 132 years to reach full parity. Discrimination pure and simple: women, regardless of whether they have children or not, are paid less than men because many companies believe that they are potentially less productive due to hypothetical absences from work because of caring responsibilities.the housekeeping and caring sector, which makes up an important share of female employment). Strong segregation between professional positions: female employment in various countries is still concentrated in sectors where wages are lower and where the role of collective bargaining is also less relevant (e.g.Long periods out of the labour market due having and taking care of children can be an obstacle that decreases the possibility of reaching managerial positions. Women having a shorter working life than men: women’s working careers suffer on average more interruptions (often linked to the contemporary need for childcare and assistance to the elderly) and, therefore, end up being shorter on average.The different amount of work performed: the average number of days or hours worked by men is greater than that of women as women often have part-time contracts allowing them to take care of family duties.Various factors can contribute to the gender pay gap. The ‘Gender Pay Gap’, as defined by Eurostat, is the difference between the average gross hourly earnings of male and female paid employees as a percentage of average gross hourly earnings of male paid employees.
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