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Logib-D, Germany

In Germany, equal rights for women and men are set out in Article 3 (2) of the German Basic Law. Equal pay for equal work and work of equal value and the prevention of discrimination are enshrined in the General Act on Equal Treatment (AGG). Despite these legal assurances, the gender pay gap currently stands at 22.2 % (unadjusted pay gap, Eurostat, 2011).

Identifying pay inequalities

Adapted from the Swiss model, Logib-D (Lohngleichheit im Betrieb Deutschland / Equal Pay within an Establishment)pdf is a pay calculator and audit system developed by the Federal Ministry of Family Affairs, Senior Citizens, Women and Youth (BMFSFJ). It has been developed in order to raise awareness in companies or organisations about the gender pay gap and how to eliminate it. It consists of a pay calculator to identify the gender pay gap in the pay structure in a company and consultancy services to assist in analysing and eliminating the gender pay gap.

Logib-D identifies the factors that determine the wage gap between men and women where women and men share the same employment characteristics. Employment characteristics include gross hourly wages, education, years in employment and tenure in the job. An expanded analysis can be made of the profile of the job based, for example, on skills, professional experience and training, the demands or complexity of the work and the training and professional experience required for each. This can also take into account occupational status and managerial responsibilities.

The tool comprises an easy to use test which is available as an online web tool. After entering the necessary details, the employer receives an anonymous report that provides an analysis of the pay structure and a diagnosis of the gender pay gap found in the company. This can be analysed on the basis of the unadjusted gender pay gap, as well as the gender pay gap that is adjusted to take account criteria such as different qualification levels. The adjusted gender pay gap is useful because it allows the organisation or company to assess the key factors that cause the gender pay gap, for example, the under-representation of women in managerial positions.

The BMFSFJ provided free consultancy services for the first 200 establishments that expressed an interest in using the tool. This has resulted in expertise to help establishments to analyse the Logib-D results and address solutions to reducing the gender pay gap, based on a consultant’s report and recommendations on how establishments can close the gender pay gap. The results are confidential and not published. Establishments that have completed this exercise and participated in a workshop with a consultant can be awarded a “Logib-D geprüft” (“Logib-D tested”) label.

Benefits for companies and social partners

By 2011, around 500 companies had used the Logib-D tool, 94 companies were in the process of receiving consultancy support and 25 had been awarded the label. Feedback from those that have participated in the workshops shows that companies have made efforts to improve personnel policies, restructure pay systems and/or put in place measures to improve the representation of women in better paid positions.

Logib-D is particularly relevant for the social partners involved in pay negotiations as it gives them access to transparent data on wage differences that can be useful in collectively agreeing wage levels.

According to the BMFSFJ, Logib-D has helped to highlight differences in pay that arise because of the under-representation of women in higher qualified and managerial jobs and a lack of part-time work for these positions. BMFSFJ also suggests that Logib-D can help companies to benchmark personnel and pay policies. Similarly, equality can have a positive impact on the motivation of employees, their job satisfaction, loyalty to the company and productivity. It can help companies improve their internal and external image and gain a competitive advantage in competing for the best employees.

For more information see the 2011 Exchange of Good Practices seminar on reducing the gender pay gap.

Please find here all the documents related to the gender pay gap.