The gender pay gap across the European Union is well documented: women earn on average 11.1% less per hour than men. But that figure tells only part of the story. When Europeans retire, the inequality deepens dramatically. The gender pension gap in the EU is 24.5%, meaning women pensioners receive just €75.50 for every €100 paid to men. That is more than twice the pay gap.
Why does retirement amplify inequality? The answer lies in how pensions accumulate over a working life. Unlike the pay gap, which measures a snapshot of hourly wages, the pension gap reflects decades of lower earnings, fewer hours worked, career breaks, and time spent in unpaid care. As Professor Alexandra Niessen-Ruenzi of the University of Mannheim told European Pulse, “The gender pension gap captures not only differences in hourly pay, but also differences in employment volume, career interruptions, and the number of years spent in paid work.”
Wide variation across member states
Eurostat data for 2024 show the gender pay gap ranges from -0.8% in Luxembourg (where women earn slightly more than men) to 18.8% in Estonia. The lowest pay gaps are in Belgium (0.7%), Romania (3.7%), and Poland (4%). The highest are in Czechia (18.5%), Austria (17.6%), and Hungary (16.9%). Germany sits at 15.6%, the UK at 13.3%, France at 11.8%, Spain at 7.3%, and Italy at 5.3%.
The pension gap tells a different story. It ranges from 5.6% in Estonia to 38.2% in Malta. Several countries exceed 30%: the UK (37%), the Netherlands (36.3%), Austria (35.6%), Luxembourg (32.7%), Belgium (31.3%), and Ireland (31.1%). Among Europe’s five largest economies, all exceed the EU average of 24.5%: the UK leads at 37%, followed by Spain (29.2%), Italy (28.6%), France (27.2%), and Germany (25.8%).
Only four countries reverse the trend, with a smaller pension gap than pay gap: Estonia (5.6% vs 18.8%), Slovakia (8.4% vs 15.7%), Czechia (9.6% vs 16.9%), and Hungary (9.6% vs 16.9%). Niessen-Ruenzi notes that “Eastern European countries have a history of women usually returning to work quickly after giving birth,” which limits career breaks.
Compounding factors over a lifetime
Professor Iris Kesternich from the University of Hamburg identifies three key drivers: gender wage gaps, gender gaps in hours worked (women are far more likely to work part-time across Europe), and gender gaps in contribution years due to women leaving the labour market around childbirth. Professor Liam Foster from the University of Sheffield adds that “pensions rely on compound interest — a small gap in pension contributions in someone’s 20s or 30s expands exponentially by the time they reach their 60s.”
Dr Ariane Agunsoye from Goldsmiths, University of London, underlines that “small differences in earnings, hours worked, career breaks, caring responsibilities, saving patterns and investment decisions build up over decades and then show up most clearly at retirement.” Dr Gabriele Mari from Erasmus University Rotterdam points out that “large gender gaps in lifetime earnings persist largely because women still carry the load of childcare and caregiving over the life course.”
The gap is not just a matter of fairness; it has real consequences for older women’s financial security. In many countries, women pensioners are more likely to face poverty or rely on family support. The issue is compounded by the fact that pension systems in several member states still reward continuous, full-time employment — a pattern that penalises those who take career breaks for care.
For a deeper look at how financial pressures push some pensioners back into work, see our analysis Where in Europe Pensioners Work Out of Financial Necessity. Meanwhile, broader demographic and economic shifts — such as the June heatwave linked to over 4,000 excess deaths across Western Europe — also disproportionately affect older women, who often live longer and have fewer resources.
Policymakers across the continent are beginning to address the issue. Some countries are introducing pension credits for caregiving periods, while others are reforming part-time work regulations. But as the data show, the gap remains stubbornly wide. Without systemic changes to how work, care, and retirement are structured, the inequality that women face in the workplace will continue to deepen in old age.
