Reforms Could Reduce Pension Gap
Wifo economist and chairwoman of the Pension Commission Christine Mayrhuber suggested that child-rearing periods should be valued more highly to better recognize this work. Currently, in the first four years after the birth of a child, a contribution for a monthly salary of 1,900 euros is credited to the pension account. With an average contribution base of 3,700 euros and assuming that only women are affected, the gender pension gap could be reduced from 41.7 to 37.2 percent. However, this measure would only benefit women with children.
Study on Pension Gap Relatively Disappointing
If women's contribution bases are increased by a "gender pay gap factor," the gender pension gap could decrease to as low as 27.1 percent, depending on implementation. The effect on the gender pension gap would be very small, however, if periods of unemployment were valued more highly (41.4 percent) and if the best 15 years were used again for calculating the pension amount (40.0 percent). Moreover, the latter would be "incredibly expensive," according to Mayrhuber. The result of the study was relatively disappointing for her, said the economist - she had expected greater leverage effects. The difference between the average pensions of women and men is currently 39.7 percent. Equal Pension Day - the day on which men have already received as much pension as women will by the end of the year - thus falls on Thursday, August 7. However, the Wifo calculation is based on new pension entries from 2015 to 2021, resulting in a pension gap of 41.7 percent.
Wifo Economist Mayrhuber Wants Discussion on Valuation of Work
Regarding the contribution bases of the self-employed, where the gap is greatest, something needs to be considered, Mayrhuber appealed. In general, there needs to be a stronger focus on the income situation of women as well as measures such as the implementation of the EU pay transparency directive. A general discussion on the valuation of work "should also be held," said the economist, as technical work, for example, is valued more highly than "socially urgently needed educational work." In an EU comparison, Austria achieves a "negative top value," according to Mayrhuber, which she attributed to a conservative family model and a higher gender pay gap. Only the Netherlands and Malta perform worse, and the pensions of men and women in Austria have converged more slowly over the past ten years than on average.
(APA/Red)
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