The gender pay gap in the EU stands at 11.1%, with women earning 11.1% less than men on average. But this disparity grows sharply in retirement, where the gender pension gap averages 24.5%, more than double the pay gap. Women pensioners receive €75.5 for every €100 men get, according to Eurostat data. This widening gap raises questions about why inequality deepens after working years and which countries face the steepest challenges.
Pay Gaps Vary Across Europe
The gender pay gap ranges from -0.8% in Luxembourg—where women earn slightly more than men—to 18.8% in Estonia. Belgium, Romania, and Poland report some of the lowest gaps, while Czechia, Austria, and Hungary lead the list of countries with the highest. Germany sees a 15.6% gap, the UK 13.3%, France 11.8%, Spain 7.3%, and Italy 5.3%. Only Luxembourg shows a pay gap in favor of women, a rare exception in the EU.
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Nordic countries consistently report gaps below the EU average. Professor Alexandra Niessen-Ruenzi from the University of Mannheim notes this reflects better childcare access and more equal distribution of caregiving roles, not just pension system design. “It’s not necessarily pension-system features in the Nordic countries,” she said, “but also better availability of child care and different gender roles leading to more equal distribution of care work.”
Pension Gaps Reflect Lifetime Inequality
The gender pension gap captures more than hourly wages. It reflects lifetime earnings, career interruptions, and time spent in paid work. Dr. Ariane Agunsoye from Goldsmiths, University of London, explains that pensions amplify small differences over decades. “Small differences in earnings, hours worked, career breaks, caring responsibilities, saving patterns and investment decisions build up over decades and then show up most clearly at retirement,” she said.
Across 30 European countries, the pension gap ranges from 5.6% in Estonia to 38.2% in Malta. The UK leads with a 37% gap, followed by Spain (29.2%), Italy (28.6%), France (27.2%), and Germany (25.8%). In only four countries—Estonia, Slovakia, Czechia, and Hungary—is the pension gap smaller than the pay gap.
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Professor Iris Kesternich from the University of Hamburg identifies three main factors driving the pension gap: wage disparities, differences in hours worked, and career interruptions tied to childcare. Women often work part-time more frequently and leave the labor market temporarily after childbirth. Professor Liam Support from the University of Sheffield adds that compound interest magnifies these gaps over time. “A small gap in pension contributions in someone’s 20s or 30s expands exponentially by the time they reach their 60s,” he said.
Dr. Gabriele Mari from Erasmus University Rotterdam highlights that women face costly periods out of paid work or low-paid employment in part-time or undervalued roles. “Women are confronted with costly periods out of paid work or low-paid employment either part-time or in under-valued occupations, all key contributors to lower pensions down the line,” he said. This pattern persists despite progress in some regions, which highlights the need for systemic changes in labor policies and support for caregivers.