Germany’s gender pay gap showed no sign of improvement in 2025, with women continuing to earn 16% less per hour than men, according to the latest data released by the Federal Statistical Office (Destatis).
Despite years of policy debate and corporate pledges on pay equality, the unadjusted gender pay gap remained unchanged from the previous year.
In concrete terms, women in Germany earned an average gross hourly wage of €22.81, compared with €27.05 for men a difference of €4.24 per hour. This means women effectively worked unpaid for more than six weeks each year when compared with their male counterparts.
The data also reveal a pronounced regional disparity. In East Germany, the unadjusted gender pay gap stood at just 5% in 2025. In contrast, West Germany recorded a much wider gap of 17%, underscoring long-standing differences in labour market structures, employment patterns, and wage-setting mechanisms between the two regions.
One of the most striking findings is the sharp contrast between the private and public sectors.
In the private sector, the unadjusted gender pay gap reached 17%, more than four times higher than in the public service, where the gap was just 4%.
When public administration, defence, social security, education and teaching are included in the calculation, the overall unadjusted gender pay gap drops slightly to 15%, reinforcing the role of public-sector employment in narrowing income inequality.
Why Women Still Earn Less?
Destatis estimates that around 60% of the total earnings gap can be explained by observable labour market characteristics.
A major factor is part-time employment, which disproportionately affects women and accounts for 19% of the pay gap (€0.81 per hour). Women are also more likely to work in lower-paid industries and occupations, explaining 18% (€0.75) of the gap. Differences in the level of job requirements contribute a further 13% (€0.55).
Crucially, 40% of the earnings difference or €1.71 per hour cannot be explained by measurable factors such as occupation, qualifications, or employment history.
This unexplained portion corresponds to the adjusted gender pay gap of 6%, meaning that women with comparable jobs, qualifications and experience still earned 6% less per hour than men in 2025. The adjusted gap was 6% in western federal states and 9% in eastern federal states.
Destatis cautioned that this figure should be seen as an upper limit for possible gender-based discrimination, as some wage-relevant factors such as career interruptions due to childbirth or caregiving responsibilities are not fully captured in the data.
Shahriena Shukri is a journalist covering business and economic news in Malaysia, providing insights on market trends, corporate developments, and financial policies. More about Shahriena Shukri.
