Gender Pay Gap in Switzerland Slowly Moving

Gender Pay Gap in Switzerland Slowly Moving

The Federal Statistical Office revealed on Monday that the salary disparity between men and women is reducing, but only slowly. Wage disparities were 12 percent in 2016, but reduced to 11.5 percent in 2018, and 10.8 percent in 2020.

The disparity is especially obvious among the workforce’s higher-earning strata. Female managers make 16.8% less than their male counterparts, whereas the disparity is just 9.3% in lower-level occupations.

Switzerland has enacted regulations to combat discrimination, including requiring bigger enterprises to publish compensation levels for male and female employees every four years.

The National Strategy for Gender Equality, which was enacted by the government last year, is a broad collection of measures aimed at improving women’s situations.

Gender pay gap has remained steady

According to figures released on Monday, the typical monthly pay in Switzerland in 2020 will be CHF6,665 ($7,161) regardless of gender.

Gender Pay Gap in Switzerland Slowly Moving

Bank employees earned the most, bringing home CHF10,211 per month, compared to CHF4,211 earned by hairdressers.

According to the data, the wage disparity between the wealthiest and lowest paid workers has remained steady in recent years.

Earnings for the best paid employees increased by 11.8 percent between 2018 and 2020, while wages for low-income earners increased by 11.6 percent.

Women continue to be paid less

Women in Switzerland are still paid less than males, notably in the public sector. Despite repeated governmental attempts to address wage packet disparity, the so-called female wage gap widened somewhat between 2014 and 2018.

In 2018, women were paid 19% less than their male peers in the same employment, compared to an 18.1 percent disparity in 2014. The most recent Federal Statistical Office (FSO) numbers span a period of strong public and parliamentary discussion on the topic, culminating in a new legislation in December 2018. Companies with more than 100 workers must now undertake gender pay audits on a regular basis and report the results to employees and shareholders.

The gender wage gap in the private sector as a whole stayed essentially the same, although there were considerable variances across different industries. In the banking and insurance industries, women were paid much less than males, compared to the hospitality business. In national and local government employment, the disparity widened from 16.6% to 18.1 percent over four years.

The FSO numbers, which were released on Monday, also revealed that the justifications for salary disparities are running thin. Differences in age, job experience, and educational qualifications can account for some of the disparity. However, the number of instances that were “unexplained” increased from 42.4 percent in 2014 to 45.4 percent in 2018. This was especially noticeable in small businesses with less than 20 employees.

This indicates that an additional CHF684 in monthly salary for the average male worker in the private sector looks to be irrational. In the public sector, while disparities increased overall, there were fewer unexplained occurrences of wage disparities between men and women over the study period. This still left an average CHF602 more salary for males per month unaccounted for.

Gender Pay Gap in Switzerland Slowly Moving

According to the poll, women held the majority (60.9 percent) of low-wage employment (paying less than CHF4,000 or $4,461), however this share is decreasing. In 2018, men accounted for four of the top five highest-earning individuals (those earning more than CHF16,000 per month).

Gender pay gap begins at starting salary

Pay disparities between men and women can be seen as early as the beginning of a professional career. Not only is starting pay in typical male jobs around CHF 200 per month higher than starting pay in typical female jobs, but the mysterious wage gap under similar conditions such as class of degree, field of work, socio-demographic factors, etc., is already around 7%, or CHF 280 per month, when entering the labor market.

Female executives were also impacted

Women in well-paid positions are likewise affected by pay disparities and discrimination. In general, the higher the professional standing and level of skills required, the higher the compensation, and the smaller the number of women, adding to a wider gender pay gap. The glass ceiling phenomenon, in which women reach a threshold in the hierarchy beyond which they cannot or only very slowly advance, is one probable explanation. Another explanation is the sticky floor phenomenon, which indicates that once a woman enters the workforce, she must wait longer for promotions and salary raises. Women also have to wait longer to take benefit of continuing education opportunities, which might lead to promotion and a wage raise.

Fathers receive pay increase, while mothers loss earnings

Married women make 24% less than married males on average. They frequently stop working or work only part-time after having a kid. Several studies have found that when women become mothers, their incomes decline. In contrast, when a man becomes a parent, he usually receives a raise in wages.

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