We write about it regularly: the gender pay gap. The topic has been on the HR agenda for years, and from 2027 it will be mandatory reporting. The Netherlands currently ranks 14th in Europe in the Gender Gap Index. Only in Luxembourg do women earn more than men, in Belgium the pay gap is very small, in Austria very large.
We believe it starts with measuring and understanding how to calculate the wage gap within your organization. So that you can then compare it: with other organizations, countries and industries and track: do you see an improvement over last year, for example.
In three simple steps, we’ll show you how to calculate the wage gap and what we often notice. These aren’t complicated mathematical models – but they do give you a sharp look at what’s really going on.
Step 1: What salary do employees actually receive in their accounts?
(Average monthly salary women ÷ average monthly salary men) × 100%
Start with the bare figures: the average gross monthly salary of men versus that of women. Without adjustment for part-time.
Why? Because this difference is a good starting point and often confronting.
A fictional example:
In the Netherlands, this difference is large, at 32% (CBS, 2024).
In practice, we see that this first step triggers a lot from our clients. From denial (“But this says nothing, women often work part-time here”) to discomfort (“Do we really want this, that men receive so much more salary every month?”).
Step 2: What do employees earn taking into account their contract length?
(Average FTE salary women ÷ average FTE salary men) × 100%
To compare more fairly, convert salaries to full-time (FTE) levels. That way, you can see whether men and women with similar efforts are similarly rewarded.
A fictional example:
CBS figures show: the adjusted difference in the Netherlands is 10.5%.
This step takes out the part-time effect. Often it then turns out that the wage gap is smaller – but still present. And then I often hear the statement, “Women are mostly in support positions here, the high-paying positions are more for men.” Understandable, but then the question is: Is that a coincidence? Or does this have a cause you can do something about?
Step 3: What do men and women earn in comparable work.
You can make the fairest comparison by looking at men and women within the same jobs, job groups or pay scales. That way you can see if there are pay differences for equal work.
Pay close attention to grading, advancement opportunities and job distribution. I regularly see that men are more easily scaled up or negotiate their salaries more. Or that women routinely end up in lower scales.
An example of a fictitious scale 7:
The CBS figures from 2022 show (unfortunately, there are no more recent figures yet):
This is the figure the reports will be all about: the adjusted wage gap. When it is >than 5% you will have to explain it from 2026.
Causes of these differences by industry
We work in many different industries and therefore see it with our own eyes. In some company jobs, there are hardly any differences between the salaries of men and women. And in other companies, on the contrary, we see large differences. The explanation is a bundle of causes: in an industry with a regulated pay structure or tight collective bargaining agreement, we see lower differences (education and government). Factors such as part-time work, limited advancement opportunities and whether an industry is traditionally male or female also often contribute to the explanation.
Worthwhile
In the end, it is very simple: Equal work deserves equal pay.
Organizations committed to equality reap the benefits. They attract – and retain – talent. They build trust. They create a culture where people thrive because they know they will be treated fairly.
Closing the wage gap is not a bonus. It is a prerequisite for sustainable growth. For well-being. For ensuring that it works.
Want to know more about the upcoming legislation around equal pay reporting? Take a look at our factsheet. If you need help calculating the pay gap or setting up a clear job structure to explain differences, contact Irene (@bunchmark.com).
