Romania is making progress year by year in reducing gender inequalities in the labor market. However, the wage gap remains over 20% in 2024, according to the "Gender Pay Gap" analysis conducted by PwC Romania based on data collected from the Paywell 2024 survey.
The gap is calculated as the ratio between the average salary of men and women.
The figure has been decreasing from 21.6% in 2023 and 23.3% in 2022.
Oana Munteanu, Director of People & Organization at PwC Romania, explained, "Gender wage inequality is no longer a new issue in Romania, but it is still addressed superficially without support from objective analysis and data. Our study conducted among medium and large companies in the private sector shows that significant wage gaps exist in certain segments. The way we measure these gaps, in line with the CSRD reporting requirements and the Directive on salary transparency, reflects the underrepresentation of women in well-paid professions or positions."
The main study findings revealed that women tend to occupy lower-paid jobs compared to men, with 75% of women in the lowest-paid quartile, while only 54% are in the highest-paid quartile. The study sample consists of 64% women and 36% men, and ideally, the distribution across quartiles should reflect the composition of the sample.
Additionally, men receive 19% higher bonuses than women, according to the same source.
The largest wage disparities are found in the banking sector (30.18%), pharmaceuticals (16.11%), and retail (14.82%), as well as in operator positions (19.2%). The smallest wage disparities are observed in top management (5.76%), with differences increasing with age.
The smallest gaps are in the technology sector (11.26%), while women in industry and BPO earn 5.51% and 1.46% more, respectively.
On a global scale, the gender wage gap in 33 OECD countries stands at 13.1%, according to the Women in Work (WiW) Index, produced by PwC. Despite significant progress from 2011 to 2023 in reducing gender inequalities in the labor market, the gender pay gap still persists.
The average score of the WiW Index increased from 56.3 in 2011 to 69 in 2023, reflecting a one-point improvement from 2022. This has been driven by a rise in the participation rate of women in the workforce, from 72.1% in 2022 to 72.7% in 2023, and a reduction in the gender pay gap, from 13.5% to 13.1% during the same period.
Since the launch of the WiW Index in 2011, more women are entering and remaining in the workforce, and wages are becoming more equitable, signaling a gradual shift toward a more inclusive workforce, PwC said.
Iceland ranks first in the WiW Index, followed by New Zealand and Luxembourg, with several European countries close behind, including Sweden, Slovenia, and Ireland.
Ireland showed the most significant improvement, moving up six places, while Israel saw the largest decline, dropping four places. Chile, South Korea, and Mexico remain at the bottom of the index.
The PayWell 2024 survey, conducted by PwC Romania, includes data from over 160 companies across seven sectors, representing more than 125,000 employees and 1,600 unique positions.
irina.marica@romania-insider.com
(Photo source: Bacho12345/Dreamstime.com)
