Human well-being and capabilities, social justice Financial equality

The German Government’s core objective for financial equality is to strengthen the financial independence of women and men. “Financial independence” means the individual’s ability to support themselves from an income of their own – including after a change of circumstances such as separation, divorce or retirement. The key prerequisite for this is substantial gainful employment, preferably via long periods in the workplace, along with a partnership-based division of caring responsibilities. The Strategic Framework for Financial Equality 2030 (External link) shows how the frameworks established by the state can be adjusted so that more women, in particular, are able to achieve long-term financial independence. This includes investment in the education, daycare and care infrastructure, measures to boost substantial gainful employment with equal division of caring responsibilities, and reforms to the tax, social security and benefit system. The Strategic Framework progressed the German Government’s Gender Equality Strategy in the 20th electoral term.

Making equal pay for equal work and work of equal value a reality (equal pay principle) is an important component in advancing financial equality. In order to reach this goal, the German Government will transpose the Pay Transparency Directive (EU) 2023/970 into German law. The Directive sets out measures to promote pay transparency within organisations, as well as minimum standards for improving legal enforcement of the equal pay principle, and must be transposed into German law by 7 June 2026.

When it comes to equal participation in leadership positions, the Federation is leading by example: with the Second Gender Equality (Management Positions) Act (FüPoG II), which entered into force in 2021, the German Government has committed to achieving equal participation of women and men in leadership positions by the end of 2025. This target applies not only to the supreme federal authorities but also to the Federation’s subordinate authorities. The Federal Ministry for Education, Family Affairs, Senior Citizens, Women and Youth (BMFSFJ) has developed “Plan FüPo 2025” to support all the ministries in achieving this target.

As part of the monitoring to supplement the Gender Equality Index, statistics are collected on a half-yearly basis from subordinate authorities, corporations, agencies and foundations falling within the scope of the federal government departments. The data provide an initial concise overview of the percentages of women in leadership positions, including in the subordinate areas of the supreme federal authorities. The Gender Equality Index for the supreme federal authorities covers around 34,000 employees. By contrast, the monitoring relating to the FüPo 2025 target covers at least 600,000 employees in the federal administration.