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New German Wage Law to Help Tackle Gender Pay Gap

CC0 / / The current pay gap between men and women in Germany is 21 percent.
The current pay gap between men and women in Germany is 21 percent. - Sputnik International
The legal provision gives employees the right to know what men and women in equal positions earn.

There are about 14 million people in Germany working for firms with more than 200 employees, and starting next Saturday all of them will have a chance to learn how much their colleagues are paid, reported.

The law, approved in January 2017 and aimed at tackling the gender inequality at work, will enter into full force on Saturday.

According to the Federal Statistical Office (Destatis), the current pay gap between men and women in similar positions reaches approximately 21 percent.

The new legislation will increase transparency about income in medium-sized and big companies forcing them to publish regular updates.

READ MORE: Iceland Legalizes Equal Pay Marking Big Step Toward Ending Gender Pay Gap

It is also expected to help reduce existing salary discrepancies associated with gender.

A new wage law was introduced in Iceland a few days ago that makes it illegal to pay men more than women. According to the law, those organizations that fail to prove pay parity will have to pay heavy fines.

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