Discrepancy between earnings of women and men increases

The discrepancy between the earnings of women and men both from salary and from pension is increasingly felt in the Republic of Moldova. According to an analytical note of the Partnership for Development Center, there is a tendency – the larger the salary is in a particular sector, the bigger is the difference, IPN reports.

The analysis “How to ensure equal pay for equal work in practice? Experience of the countries of the European Union” was carried out within the project “From 87 to 100”, with the financial support of the Equality and Civic Engagement Program of Soros Foundation Moldova.

The note authors say the wage gap in Moldova is underestimated. This implies financial losses, especially for women. In 2014, only 6.37% of the salaried women worked in areas where the pay gap disadvantaged the men. Thus, for 93.63% of the employed women, the wage gap is an invisible tax that amounts to an annual average of 7,620 lei (value calculated for 2014).

Though they are few in number, the empiric analyses of the economic effect of the decline in the gender pay gap show rather significant positive effects. The readjustment of the average salaries and pensions of women to those of men would lead to higher family incomes, reduced poverty among the elderly people and lower costs for social assistance. An economic study shows the reduction in the pay gap by 1% will lead to a 0.5% rise in the GDP, while the elimination of pay gap will lead to an 8.5% growth in the GDP.

The Partnership for Development Center underlines the necessity of introducing the definitions of hard work and work of equal value in the national legislation, an equitable system for assessing posts and measures to increase transparency in the remuneration system and of giving clear powers for preventing wage discrimination in the workplace to equality institutions.

Contacted by IPN, Deputy Speaker of Parliament Liliana Palihovich said legislative amendments are drafted to remove the wage gap from the real life as the laws do not contain provisions that can cause a pay gap. The wage gap affects the pension of women, leading thus to a higher poverty level among women. The illegal payment of salaries ‘in envelope’ should be eliminated and the women should be better informed so that they negotiate the best work contract possible. Studies show the women often ask for a salary from which the men only start to negotiate.

Lilia Pascal, head of the Gender Equality Policies Division of the Ministry of Labor, said the Ministry is finalizing the strategy for ensuring gender equality for the next five years and this includes policies concerning labor market and the wage gap. Also, an analysis of pay equity is to be carried out in the process of adjusting the national normative framework to the European provisions. Afterward, together with other social partners, proposals for ensuring pay equity will be formulated. The Ministry also plans activities to raise awareness of gender pay gap and make the employers more responsible in this regard.

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