Nowadays more and more women are participating in a modern economy and obtaining higher education, however, they are still significantly underpaid in comparison to their male coworkers. In order to address the gender wage gap issue and achieve equal pay, the UN General Assembly established the International Equal Pay Day in 2019 which is commemorated on 18 September every year, and raises awareness about the difficulties of women’s economic empowerment and overcoming pay inequality.

For some people payday brings a sense of relief or gratification, however, for others it is a constant reminder of unjust systems and inequalities between women and men in the workplace. Numerous studies came to the conclusion that women earn much less than men, despite having the same job. The latest data demonstrates that the global wage gap between women and men amounts to almost 23%, while average numbers are notably higher for women with children, women of color, women refugees and migrants, and women with disabilities. A woman globally earns 77 cents every time a man makes a dollar, in the European Union a woman gets 84 cents every time a man is paid an euro, and in the US, women of all races get approximately 0.82 cents, while Hispanic or Latino women receive only 0.54 cents for every $1 earned by men of all races. The gender wage gap in Hungary was approximately 18.5% in 2019, which is significantly higher than the EU average of 14%. Additionally, Statista Poll showed that in 2020 almost 70% of respondents believe that men and women are not paid equally for doing the same job in Hungary.

Such drastic divergences in wages have significant negative impacts on everyday life of women and their families. It is important to highlight that Covid-19 pandemic further deteriorated the situation with uneven distribution of financial resources among genders. According to latest estimations, at current pace it will take 250 years to close the gender pay gap, meaning that gender equality won’t materialise in the foreseeable future.

What is Equal Pay? 
Equal pay implies that employees who perform similar or equal work are entitled to the same wage. Equal work involves performance of identical tasks and requires similar knowledge and skills. Equal work can also be determined as equivalent in terms of how demanding it is. In addition, equal pay applies not only to a basic salary, but also covers bonuses, overtime rates, performance-related bonuses, sick pays, travel allowances etc. Several countries proposed Equality Acts to protect people from discrimination in the workplace and provide them with equal remuneration. Furthermore, International Labor Organisation’s Equal Remuneration Convention back in 1951 inferred that Equal pay for Work of Equal Value is a basic human right and it has also been one of the European Union’s founding principles since the Treaty of Rome in 1957.

The reason the gender wage gap persists
The gender wage gap originates in systematic inequalities, as women participate in informal sectors around the world much more than men do. The problem is that informal jobs are usually not covered by labor laws, thus facilitating unsafe and unfair working environments and conditions. Besides, women are more likely to experience frequent career breaks, as they tend to be burdened with care responsibilities. The participation rate of women in unpaid work is three times higher than men. Consequently women’s participation in paid work is comparatively lower than that of men. Moreover, women tend to work in certain sectors and jobs that are low-paid due to gender-based division of labour.

The reason we need Equal Pay Day
Equal Pay Day was initially started by the National Committee on Pay Equity, a coalition of women’s and civil rights organizations alongside with labor unions and individuals, back in 1996 with the purpose of raising awareness about the wage gap and reminding people to act to eliminate gender and race discrimination.

In a nutshell, the gender wage gap is a very stubborn and persistent issue that millions of women are facing nowadays. However, it is crucial to understand that solving problems of this scale requires time and effort. The world needs to shift from traditional and restrictive gender roles. The Equal Pay Day is the chance to raise awareness about ongoing discrimination against hard-working women.

Check out what the gender pay gap is and how we can close it.

Introducing the lead article’s contributor

Nigar Gadirova is an ambitious and driven student, who is currently pursuing her Master’s studies in the field of Strategic International Management at International Business School in Budapest. The goal of her Master’s dissertation is to observe whether national culture has an Introducing the lead article’s contributor impact on the level of corruption and bribery in a country. Prior to that, Nigar graduated from University of Debrecen with academic excellence with a Bachelors of Business Administration and Management. Her Bachelor’s thesis elucidated the topic of Pollution Haven Hypothesis and Foreign Direct Investment in BRICS countries.
Alongside the studies, Nigar is also a Peer Mentor at IBS, where she is responsible for mentoring and supporting younger peers. In the future, Nigar endeavors to become a Marketing Manager or a Copywriter. She can be reached here.