Unlocking Equal Pay: Luxembourg's Journey Towards Gender Equality

Published on: 23 April 2024

In honor of International Women's Day, the nation's statistics powerhouse STATEC looked into Luxembourg's strides in closing the gender pay gap. While the country is on the way to closing the gap, there is still work to be done. Work in which HR partners can play a pivotal role.

All in all Luxembourg is still going strong with women having a slight edge in hourly wages, going from -0,2% in 2021 to -0.7% in 2022, compared to Europe’s average of 12,7%, this is a good sign. However when we zoom out to look at annual salaries, men still cling to the top spot.

When calculating the gender pay gap based on the median salary, which divides earners into two equal groups, a more substantial gap in favor of women (-11.3%) reveals itself. Conversely, the gap widens significantly in favor of men (+27%) at the upper end of the salary distribution.

And let's not forget bonuses and working hours. Men seem to be snagging the bigger slices, leading to a +4.5% gap when bonuses are thrown into the mix. While women are clocking fewer hours, often due to part-time roles.

The role of an HR partner

In conclusion, Luxembourg's on the right track, but there's work to be done. We all need to take our responsibilities in this: employers and employees. But recruiters and HR-partners as well. Their role in fostering inclusive workplace cultures, implementing fair compensation practices, and championing policies that support work-life balance cannot be overstated.

At Select HR Luxembourg we take this responsibility very serious. We are aware of the role we can play in closing the pay gap. Helping organizations by giving insights and sharing our expertise on the matter.

Are you looking into how to help closing the gap as an employer? Reach out to get tailormade HR advice from our professionals. Let’s take small steps into progress. After all, equality isn't a sprint; it's a marathon.

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