07.03.2025 | Gender pay inequality continues to be an issue in 2025, with the gender pay gap standing at 16% in Germany last year. However, collective bargaining agreements and co-determination are effective tools to combat this problem — tools that must be politically strengthened.
Equal pay has not yet been achieved. On average, women earned 16% less per hour than men last year. This marks a 2 percentage point improvement compared to the previous year. The "adjusted gender pay gap," which accounts for qualifications, job roles, and career histories, remains unchanged at 6%. If we want pay to be determined by qualifications and job responsibilities, rather than gender or subjective biases, we cannot accept this. That is why IG Metall has always fought against gender and pay inequality in the workplace.
Recent data from Germany's Federal Statistical Office shows that we are making progress: Women in unionized companies in the metal and electrical industries (M+E) earn €10.55 more per hour than women in non-unionized companies. The pay gap between women and men in unionized companies is only 10%, while it remains stagnant at 18% in non-unionized M+E companies.
Christiane Benner, Chairwoman of IG Metall, emphasizes the lasting impact of collective bargaining agreements: "Women in unionized companies earn an average of a four-figure sum more than in non-unionized companies. This shows that collective agreements work — and they work sustainably! Higher wages also mean less poverty in old age, greater financial independence for women, and higher tax revenue for the public good."
She sees a major need for action in equality policies and urges the next German government to take action: "The Tariftreuegesetz must be enacted, because union membership protects against wage discrimination. [The Trariftreuegesetz law is currently subject of discussion. It would require companies bidding for public contracts to comply with applicable collective bargaining agreements, ensuring that employees receive at least the minimum wages set by these agreements.] The implementation of the Pay Transparency Directive must also continue. Parents and caregivers need relief through improvements to parental leave, family startup time, and wage replacement for caregiving. We need a massive expansion of child care services and the right to increase working hours."
The current analysis also reveals that structural causes contribute to the pay gap. Women are more likely to work part-time, are underrepresented in leadership positions, and are often placed in lower-rated positions after taking parental leave. These factors result in women earning less on average than men, even when their qualifications and job roles are the same.
At company levels, IG Metall and works councils are advocating for the systematic review of pay structures. Works councils have co-determination rights and the ability to address unequal pay and promote internal pay equity. This includes ensuring transparency in pay components and reviewing job classification practices.