November 2012

The unadjusted Gender Pay Gap (GPG) represents the difference between average gross hourly earnings of male paid employees and of female paid employees as a percentage of average gross hourly earnings of male paid employees. From reference year 2006 onwards, the new GPG data is based on the methodology of the Structure of Earnings Survey (COUNCIL REGULATION EC No 530/1999 of 9 March 1999 concerning structural statistics on earnings and on labour costs) which is carried out every four years. The most recent available data refers to reference years 2002, 2006 and 2010. Whereas the GPG figures for 2006 and 2010 are directly computed from the 4-yearly SES, for the intermediate years countries provide annual estimates which every 4 years are revised, benchmarked on the SES results in the two respective years. Some countries calculate the annual GPG on a yearly SES and hence their data needs no further adjustment or revisions as the majority of the others.

Data are broken down by economic activity (NACE: Statistical Classification of Economic Activities in the European Community), form of economic and financial control (public/private) of the enterprise, working profile (full-time / part-time) and age classes (six age groups) of employees.

The data disseminated in these tables has been compiled using the economic activity classification NACE Rev. 2 from reference year 2008 onwards. For previous reference years, up to 2007, data were also compiled using the previous economic activities classification (NACE Rev. 1.1) and are disseminated in a separate table (earn_grgpg1).

The time series in this table includes back casted data for reference year 2007. For some countries back-casting was not possible due to lack of detailed information at NACE 4-digit level. Nonetheless, as a transition between the two classifications, data is available for all countries for the NACE Rev. 2 aggregates B to N, B to S and B to S (excluding O) which are of good and close approximation to NACE Rev. 1.1 aggregates C to K, C to O and C to O (excluding L) respectively.

The 2007 aggregates in NACE Rev. 2 are only for information purposes, as a transition between the two classifications.

The main differences between NACE Rev. 1.1 and NACE Rev. 2 are to be found in the more detailed breakdown of the services sectors, on the one hand, and the less detailed breakdown of the manufacturing sector sectors, on the other hand. For more information on NACE, please consult:

http://epp.eurostat.ec.europa.eu/portal/page/portal/nace_rev2/introduction

The following correspondence table (NACE/CPA Access Database) explains the different links between NACE Rev. 1.1 and NACE Rev. 2:

http://circa.europa.eu/irc/dsis/nacecpacon/info/data/en/index.htm

According to the new methodology, the unadjusted GPG indicator coverage is defined as follows:

- target population: all employees, there are no restrictions for age and hours worked;

- economic activity according to NACE Rev. 2. Statistical Classification of Economic Activities in the European Community: only for the aggregate sections B to S (excluding O) and B to N, and if available, also for sections B to S;

- size of enterprises: 10 employees or more.

From reference year 2006 onwards, the new unadjusted GPG is based on the methodology of the SES (Structure of Earnings Survey according to Regulation (EC) 530/1999). The SES is carried out with a four-yearly periodicity.

The GPG in unadjusted form represents the difference between average gross hourly earnings of male paid employees and of female paid employees as a percentage of average gross hourly earnings of male paid employees.

The GPG is calculated at Member States and EU-aggregates total level using the arithmetic mean for the NACE Rev. 2 aggregate B to S (excluding O) and if available, also for sections B to S.

The national and the EU-aggregated GPG values, either in total or breakdowns according to the various variables below, are calculated using the grossing up factors for the employees (variable 4.2 for SES 2002 (Reg. 1916/2000); variable 5.2 for SES 2006 and SES 2010 (Reg. 1738/2005)) as weights. EU-aggregates are computed on the basis of employee-weighted averages.

For each country, the GPG is calculated by gender, aggregate and according to the following breakdown:

Gross hourly earnings of (gender) paid employees = ∑ (variable 4.3. x variable 5.2) / ∑ variable 5.2

added over the MS, EU total or breakdown considered.

Where variable 4.3 = average gross hourly earnings in the reference month (Reg. 1738/2005).

The indicator has been defined as unadjusted (i.e. not adjusted according to individual characteristics that may explain part of the earnings difference) because it should give an overall picture of gender inequalities in terms of pay. The Gender Pay Gap is the consequence of various inequalities (structural differences) in the labour market such as different working patterns, differences in institutional mechanisms and systems of wage setting. Consequently, the pay gap is linked to a number of legal, social and economic factors which go far beyond the single issue of equal pay for equal work.

While the size of the unadjusted GPG certainly gives an indication of the situation women face in the labour market, it generally makes sense to take into account other labour market indicators as well to get a fuller picture of the possible reasons underlying the pay gap in a particular Member State.

The statistical unit is the employee.

According to the new methodology the coverage is defined as follows:

• target population: all employees, regardless of age and number of hours worked;
• economic activity according to NACE Rev. 2.: only for the aggregate sections B to S (excluding O) and their respective sections; aggregate B to S and section O are optional;
• size of enterprises: 10 employees or more.

Gross hourly earnings shall include paid overtime and exclude non-regular payments.

Part-time employees are also included.

The data cover EU-Member States, Euro Area countries, Iceland, Norway and Switzerland.

The available reference years are 2002, 2006 and 2007 (NACE Rev. 1.1) and 2008, 2009 and 2010 (NACE Rev. 2) for most countries. 2007 data is also available in NACE Rev. 2 at aggregate level (for all countries) and at NACE Rev.2 Section level (for some countries). The GPG annual estimates are available annually since reference year 2006 and revised every four years (benchmarked on SES data).

Not applicable.

Percentages.

The reference years available in this table are from 2008 onwards (2007 data is only for information purposes taking into consideration the transition between the two NACE classifications).

EU-Member States and (if available and comparable) other European countries participating in the four-yearly Structure of Earnings Survey.

Whereas the Structure of Earnings Survey is based on a legal act (Reg. 530/1999 and 1738/2005), the Gender Pay Gap is based only on a gentlemen's agreement basis.

Not applicable.

Regulation (EC) No 223/2009 on European statistics (recital 24 and Article 20(4)) of 11 March 2009 (OJ L 87, p. 164), stipulates the need to establish common principles and guidelines ensuring the confidentiality of data used for the production of European statistics and the access to those confidential data with due account for technical developments and the requirements of users in a democratic society.

Not applicable.

New data (annual estimates: t+2) are disseminated on Eurostat website in the first quarter each year.

Not applicable.

In line with the Community legal framework and the European Statistics Code of Practice Eurostat disseminates European statistics on Eurostat's website (see item 10 - 'Dissemination format') respecting professional independence and in an objective, professional and transparent manner in which all users are treated equitably. The detailed arrangements are governed by the Eurostat protocol on impartial access to Eurostat data for users.

Annual.

No news releases.

See: http://ec.europa.eu/eurostat

Please consult free data on-line or refer to contact details.

Not applicable.

Annual report on Equality between women and men (DG Employment, Social Affairs and Equal Opportunities) :

http://ec.europa.eu/social/main.jsp?catId=422&langId=en&furtherPubs=yes

As from 1^st January 2011 anti-discrimination and gender equality policies and related activities are coordinated by Directorate General Justice (DG JUST). The former link http://ec.europa.eu/social/main.jsp?catId=765&langId=en will be moved to the website of Justice, Fundamental rights and Citizenship.

See concept 3.4 above.

Not available.

GPG data are based on the methodology of the four-yearly Structure of Earnings Survey, and Member States compile/estimate GPG data according to the rules and guidelines established in the SES methodology.

After data submission to Eurostat several validations are performed on the data.

In the context of Eurostat's "Quality assurance framework" a Quality Peer Review of the Structure of Earnings Survey 2006 was carried out in 2009.

The main user of the GPG indicators is the Employment Committee. The GPG database is one of the data sources used for the monitoring of Guidelines 18 and 22 of the European Employment Strategy (EES) which promotes a life-cycle approach to work (18) and aims at ensuring employment-friendly labour cost developments and wage-setting mechanisms (22).

The unadjusted GPG belongs to the list of gender equality indicators that are part of the indicators to monitor policy progress in Employment and social policy, and equality.

http://epp.eurostat.ec.europa.eu/portal/page/portal/employment_social_policy_equality/equality/gender_indicators

Users are generally satisfied.

Some of the gaps in data are due to late data delivery announced by some countries. Others are due to non-availability of information at country level.

Not applicable.

Not applicable.

Not applicable.

Data is collected within 12 months from the end of the reference year.

Not applicable (data delivery based on a gentlemen's agreement).

Based on a common definition (SES methodology) the output is harmonized across countries.

Comparability over time improved substantially since the application of the new methodology (see: item 3.1).

Not applicable.

Plausibility checks are carried out.

Not defined.

According to the new methodology, annual estimated data are revised every four years when the data from the Structure of Earnings Survey become available.

Annual estimates may also be revised from time to time when there is new information or data improvement revised at country level.

Not applicable.

The results of the four-yearly Structure of Earnings Survey (SES) are used for the calculation of the (unadjusted) Gender Pay Gap figures. This survey is carried out according to the stipulations laid down in the Regulations 530/1999 and 1738/2005. The GPG figures for the years between the SES benchmark years are based on national comparable estimates.

Annual.

Countries provide data and metadata via EDAMIS.

A set of standardized validations are applied by Eurostat on the data submitted.

Compilation of aggregates:

EU-27 and other EU-aggregate estimates are number of employees-weighted averages corresponding to the GPG covered population.

EU-27 and Euro Area totals are computed only when data are available for all countries. If data for a country is missing for one year then EU totals may be completed using data from the previous year for that country. In that case the EU totals will be flagged as provisional.

Not applicable.

The Gender pay gap in unadjusted form in % - NACE Rev. 1.1 (Structure of Earnings Survey methodology) is based on the new methodology (see above Item 3: Statistical presentation), however data in these tables are classified according to the NACE Rev. 1.1 classification and the only available breakdown is the economic activity (NACE) at section level. Available data cover reference years 2002, 2006 and 2007.