Austria continues to have one of the largest gender pay gaps in the European Union, with women earning 18.3 percent less per hour than men in 2023, according to new data from Statistik Austria.
While this is an improvement from 22.3 percent in 2013, the gap remains well above the EU average of 12 percent. Among EU countries, only Latvia reported a higher difference in pay between men and women.
Despite some progress, Austria still struggles with significant wage disparities.
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Statistik Austria found that around a third of the pay gap can be explained by factors such as the industries in which women are more likely to work, the types of jobs they hold, and how long they stay with an employer. However, nearly two-thirds of the gap remains unexplained, highlighting structural inequalities in the labour market.
Why does Austria’s gender pay gap remain so high?
One of the main reasons for the gap is the concentration of women in lower-paid sectors - or the fact that women-dominated sectors are often lower paid.
Many industries with higher average salaries, such as engineering, technology, and finance, continue to be male-dominated. At the same time, women are more likely to work in fields like healthcare, education, and retail, where wages are generally lower.
Part-time work also plays a major role
In 2023, over half of all employed women in Austria worked part-time, while only 13.4 percent of men did. The gap is even wider among parents. Among women aged 25 to 49 with children under 15, 74 percent worked part-time, compared to just 7.7 percent of men.
Since part-time work often comes with lower hourly wages and fewer opportunities for promotions, it contributes significantly to long-term income disparities.
The data also shows that women’s earnings tend to stagnate from around the age of 30, while men’s salaries continue to rise throughout their careers.
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This is likely tied to career interruptions, as many women take time off or reduce their working hours to care for children. On average, women in Austria stay with the same employer for less time than men and this impacts their salary growth and job stability.
Education doesn’t seem to be a key factor in the pay gap. Even though women in Austria are often more highly educated than men, this doesn’t lead to higher wages.
If earnings were based solely on formal education levels, women should, in theory, earn more than men, but this is not reflected in actual salaries.
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Long-term consequences
The impact of the gender pay gap extends beyond working life.
The pension gap between men and women in Austria remains stark, with women’s average retirement income significantly lower than that of men. This is mainly due to lower lifetime earnings, time spent out of the workforce, and the high part-time employment rate among women.
In 2023, nearly 30 percent of retired women living alone were considered at risk of poverty, compared to 17 percent of men. Single mothers also face a particularly high risk of financial insecurity.
Closing the gender pay gap means making real changes in the job market. Easier access to childcare, more flexible work options for parents, and greater wage transparency could all help. But while there’s been plenty of talk about reform, real progress has been slow.
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