ÖGB Calculation: Closing the Pay Gap Would Boost State Budget by Billions

Two Scenarios Compared

In a second scenario, the ÖGB only takes into account that part of the pay gap that cannot be explained by gender-specific differences relating to "industry, occupation, working hours, age and other characteristics." The result of the calculation: female employees would on average earn 366 euros net more per month. The coffers of the state and the social insurance systems would be filled with nine billion euros.

The ÖGB presented the results in Vienna over the weekend. Trade union federation president Wolfgang Katzian pointed out that closing the pay gap is not only a matter of justice, but would also make economic sense overall. Higher incomes automatically mean higher tax and revenue receipts for the state.

The calculation follows a series of studies that have examined the connection between wage levels and public revenue in recent years. The ÖGB argues that an active wage policy aimed at reducing pay differences can contribute to stabilizing the state budget in the long term. Particularly in times of tight budgets, it becomes clear that higher employment incomes broaden the state's funding base.

Fiscal Arguments Against Equality Myths

The SPÖ, to which the ÖGB is closely linked, had also repeatedly pointed out in recent months the fiscal advantages of closing the pay gap. The figures now presented underpin this position with concrete calculations. The ÖGB emphasizes that the results are based on official data and do not constitute a model calculation with hypothetical assumptions.

From the trade union federation's perspective, the pay gap cannot be explained by individual factors alone. Structural differences, such as the unequal distribution of paid and unpaid work, also play a role. The calculation shows that political measures to equalize pay would benefit not only those affected, but the economy as a whole.

The ÖGB announced that it intends to bring the results into the upcoming collective bargaining negotiations. The study is also intended to serve as an argument for legal measures on pay equality. Katzian emphasized that fair pay for women and men is an investment that pays off for the state.

Calculation as a Basis for Negotiations

The ÖGB's calculation thus adds a fiscal perspective to the debate on closing the pay gap. While equality measures are frequently confronted with cost arguments, the trade union federation has now demonstrated that equalizing wages would increase public revenue. The amount of the additional revenue depends on what proportion of the pay gap is closed.

In the first scenario, which takes into account the entire 16 percent pay gap, the result is additional income of 221 euros per month. In the second scenario, which covers only the part of the gap not explained by structural characteristics, this amount rises to 366 euros. The difference between the two scenarios illustrates how large the share of the pay gap is that is attributable to factors other than industry, occupation, or working hours.

The study is part of a series of international investigations that examine the connection between wage levels and state revenue. In other European countries as well, trade unions and research institutions have presented similar calculations. The ÖGB sees this as confirmation of its demand for a consistent policy of wage equalization.