Research exposes how performance pay widens pay gap

Europe

A new research briefing from the European Trade Union Institute (ETUI) shows not only that performance-related pay (PRP) is becoming increasingly prevalent across the EU but that it contributes to pay inequalities between men and women. Men are more likely to get PRP, and in higher amounts, because it tends to be available in larger firms, at the higher end of the wage distribution, for full-time rather than part-time work, and in certain sectors and occupations. The ETUI argues that the current EU equal pay legal framework and proposed Directive on pay transparency, may only be of limited assistance in addressing the inequalities arising from PRP. It calls on social partners and policymakers at the European and national levels to develop effective solutions.