Council released conclusions relating to women's financial independence.

On 7 May, the Employment, Social Affairs, Health and Consumer Affairs Council (EPSCO) approved the conclusions relating to "strengthening women's economic empowerment and financial independence as a means to substantial gender equality". The conclusions were based on a report by the European Institute for Gender Equality (EIGE) covering financial gender equality. The report dealt with the causes and consequences of the wealth gap between the sexes and potential perspectives for guaranteeing women's financial independence.

Reasons for the gender-specific pay gap

If we look at the figures published by eurostat they show that the gender pay gap between men and women has narrowed in recent years. However, it is still currently 10.2 per cent for full-time employees. The gender pay gap is 7.7 per cent in Germany. The reasons for the differences are varied. However, specific structural factors can be identified here. Women are more likely to work in lower-paid jobs or work fewer hours. They are also taking on more care work, especially within their families. In addition to looking after their children, this also includes caring for elderly or ailing family members. This has relevant consequences for their professional careers, as many women feel forced to reduce or stop their professional activities, at least temporarily.

Wage disadvantages result in pension gaps

The wage gap is followed by a gender-specific pension gap, the so-called gender pension gap. This is because a growing difference in assets and pensions can be seen as age increases. This is also due to the fluctuating nature of women's careers, which has an impact on the final calculation of their pensions. The Council's demands are directed accordingly at the pension systems as well.

Member states hold responsibility

The Council is calling on all member states to incorporate gender equality perspectives into their pension systems. They should place a special focus on people who have put their professional activities on hold to care for relatives.  The Council also recommended that infrastructures and services in the long-term care sector should be expanded in order to relieve the burden on carers. Specifically, the care provided by relatives should also be included in the old-age pension calculations. Ireland provides a model for such a concept in Europe. 

Adapting the tax systems

Proposals were also made for adjusting the tax systems, e.g. with regard to joint taxation. With joint assessments, the marginal tax rate for the second earner - currently they are mostly women - often increases as the joint tax rate falls.  The member states are called upon to abolish such negative incentives and replace them with positive incentives.

Demands for the European Commission 

The European Commission has been invited to monitor progress on legislation, measures and policies for reducing the gender pay and pension gaps and to continue best practices. The information situation on the multidimensional concept of women's financial dependency and gender-specific issues regarding care must also be improved, e.g. through supporting research