Equal pay – if not now, when?
Column: This year marks the 50th anniversary of the Danish Equal Pay Act. Even so, our new equal pay analysis shows a pay gap in the financial sector of 14.4 per cent in favour of men. If 50 years didn’t do it, how long will it take before we reach our goal?
This is about more than figures
This figure hasn’t changed since 2024 when we performed the analysis with HBS Economics for the first time.
Our new analysis also shows that the pay gap grows wider in step with management responsibility. In top management, the difference is around 20 per cent – of which 11 per cent is unexplained.
This is about more than just figures. The pay you get affects your opportunities throughout your working life – pension, latitude, career choices. With a Danish Equal Pay Act turning 50 this year, we should have made more progress.
We speak of progress often. But when the inexplicable pay gap stays the same year after year, what else can we call it than a standstill?
Greater transparency is a means
So where do we go from here? Research has shown that pay transparency reduces inequality. Therefore, the new EU rules on pay transparency should be implemented into Danish law as soon as possible – a concrete action that can make a difference.
But responsibility goes further than the Danish Parliament. Companies must actively review their pay structures. Pay inequality is often rooted in history – and imbalances do not correct themselves. Management knows the figures, and it is their responsibility to act.
We also know that bias plays a role in pay formation. Not because of ill will, but because cultures, structures and habits persist unless you make a deliberate effort to change them. That’s why change takes a lot more than good intentions.
The past has shown us that equality does not come easy. It takes willpower, transparency and action, as in persistent action, real transparency and really strong willpower.