Finland: Gender-related pay gap among salaried employees is hundreds of euros

(Helsinki 20.07.2009 - Juhani Artto) Female salaried employees earn, on average, EUR 300 per month less than male salaried employees when their job profiles, work experience and working hours are identical. This is indicated by a new study made by the Union of Salaried Employees TU.

In February, almost 17 000 rank and file members replied to the union questionnaire. They work as experts and foremen in private sector industry, construction companies and services.

The gender-related pay gap has already widened considerably before one reaches 30 years of age. It is at its widest just before one retires when men are paid, on average, EUR 1 000 per month more than women.

TU's researcher Petri Palmu regards the results of the study as reliable, as the number of replies is very substantial and as the participants in the study, by their profiles, is well representative of the membership.

Women handicapped by family leave

A male salaried employee who earns, at the beginning of his working career about EUR 2000 per month makes, at the end of the career, on average, EUR 3 500 per month. During a 40-year work career he will earn at least EUR 145 000 more than a woman who also has a 40-year work career.

"Interruptions in women's careers give men an advantage in progressing in their careers and thus also in development of their pay", Palmu says. "In addition, being a woman may still be, because of, for example, the right to family leave, a handicap when companies promote employees to foreman jobs and to demanding expert jobs."

"There will always be human beings, with all their values and attitudes, behind decisions concerning promotions and individual pay rises", Palmu points out.

"One contributory factor may be that, in negotiations on salary, women do not dare or are unable to articulate how demanding their work really is and how much they should therefore be paid."

Within the TU membership, employees working in accounting branches and property services belong to the low-pay groups. Their average monthly salary is from EUR 2 200 to EUR 2 600. The best paying employers are to be found in the technology and paper industries where the average monthly salary is about EUR 3 200. TU's study shows that the gender-related pay gap is present regardless of the level of salaries.