[Inside Chodong] Gender Discrimination Hidden by Salary Confidentiality... Improving Transparency Through Disclosure System

Invisible Discrimination in Pay and Promotion between Men and Women

Salary Confidentiality Becomes Entrenched in Corporate Culture

Narrowing the Gap for a Gender-Equal Structure and Greater Diversity

Last year, the "Equality Hotline" operated by the Seoul Women Workers’ Association received a report regarding wage discrimination by gender experienced by female worker A. Despite performing the same work, male employees were placed at Grade 6, while female employees were assigned Grade 7, resulting in a wage gap of approximately 800,000 won per month. A, who worked in the accounting department, discovered this disparity while checking the payroll records. Although she filed a petition with the Labor Relations Commission and received the wage difference and some compensation for damages, she ultimately decided to leave the company.

Gender discrimination in recruitment, wages, and promotions is often perpetuated as a longstanding practice. Especially, the culture of salary confidentiality has become firmly entrenched in many companies, making it difficult for employees to share information about their compensation. From the moment they join, salaries are regarded as a "taboo subject." In such an environment, discrimination is not easily exposed.

A's company was no exception. If she had not been in charge of accounting work, it is highly likely that the unequal structure would have continued to this day. The hierarchy and culture of silence within organizations further conceal gender discrimination. In fact, only 20 consultations, accounting for just 1.3% of all cases, regarding gender discrimination were reported to the Equality Hotline last year. This is believed to be because discrimination often goes unnoticed or is difficult for individuals to recognize. There have also been cases where workers, after more than a decade of employment, only became aware of discrimination much later and sought consultation.

The Ministry of Gender Equality and Family is working to address these concealed wage gaps by promoting the introduction of an "Employment Equality Disclosure System." This system would require the public release of information on employment and wage status by gender within companies, initially covering large corporations and public institutions, and subsequently expanding to small and medium-sized enterprises. Through this approach, there are heightened expectations that Korea may be able to shed its persistent reputation among OECD member states as having the largest gender wage gap.

Globally, the Employment Equality Disclosure System is already widely adopted. Countries such as Germany, Sweden, Ireland, Japan, France, and Canada are mandating the disclosure of gender wage gaps. Since 2017, the UK has required companies and public institutions with more than 250 employees to post gender wage gap data on a government-designated website every year. Furthermore, the ratio of male and female employees receiving bonuses is also disclosed transparently, allowing anyone to verify the information.

It is important to remember that the gender wage gap ultimately leads to a pension gap. According to the National Pension Service, the average monthly national pension payment for women over 60 is 407,000 won, which is only about half of the average for men, 824,000 won. Addressing the gender wage gap can also serve as an important step in solving the chronic issue of elderly poverty in our society. By implementing the Employment Equality Disclosure System, companies can establish employment and wage structures that are gender-equal, thereby promoting diversity and competitiveness.

This content was produced with the assistance of AI translation services.