Understanding the pay gap calculator — concept and principle
The pay gap measures how much less one group earns than another, usually women compared with men. This calculator computes the unadjusted gap from average gross hourly pay, using the same method as Eurostat, and shows the difference per hour and per year.
How it is calculated
- Pay gap = (pay of group A − pay of group B) ÷ pay of group A × 100.
- Group B earns per 100 of group A = pay B ÷ pay A × 100.
- Difference per hour = pay A − pay B; per year = that × hours per week × 52.
- Gap measured against group B = (A − B) ÷ B, shown for comparison.
The principle
Using hourly pay removes differences caused simply by working more or fewer hours, so part-time work does not by itself create a gap. Eurostat's gender pay gap divides the difference by men's pay, which answers the question "how much less, as a share of men's pay, do women earn?" The figure is called unadjusted because it does not account for job, sector, experience, education or hours. It measures the overall difference in outcomes, which includes but is not limited to discrimination.
Worked example
Default inputs: group A 26.00 USD an hour, group B 22.40 USD an hour, 40 hours a week.
- Difference per hour = 26.00 − 22.40 = 3.60 USD.
- Pay gap = 3.60 ÷ 26.00 × 100 ≈ 13.8%.
- Group B earns 22.40 ÷ 26.00 × 100 ≈ 86.2 per 100 of group A.
- Difference per year = 3.60 × 40 × 52 = 7,488 USD.
- Measured against group B: 3.60 ÷ 22.40 ≈ 16.1%; group A earns more.
| Average hourly pay, group A (e.g. men) | Pay gap (% of group A pay) |
|---|---|
| 6.5 | -244.6% |
| 13 | -72.3% |
| 19.5 | -14.9% |
| 26 | 13.8% |
| 32.5 | 31.1% |
| 39 | 42.6% |
| 52 | 56.9% |
How to read the result
Always say which group is the base: a 13.8% gap relative to A is the same as a 16.1% premium relative to B. An adjusted gap, from statistical models that compare similar workers, is usually smaller, but the unadjusted gap still shows a real difference in what groups earn. Compare figures only when they use the same pay measure and population.
Common mistakes
- Comparing yearly or monthly earnings, which mix pay rates and hours.
- Switching the base group between figures.
- Treating the unadjusted gap as a direct measure of discrimination.
- Comparing medians from one source with means from another.
Frequently asked questions
How is the gender pay gap calculated?
In the EU, as the difference between men's and women's average gross hourly earnings as a percentage of men's earnings.
What is the difference between adjusted and unadjusted pay gaps?
The adjusted gap controls for factors such as job and experience; the unadjusted gap does not.
Why use hourly pay?
So that differences in working hours do not appear as a pay gap.
Sources: Eurostat, Gender pay gap statistics (methodology, unadjusted GPG) · OECD, Gender wage gap indicator (definitions)