Federal Labor Court ruling: Equal work, unequal pay – what now?

Federal Labor Court ruling: Equal work, unequal pay – what now?

Just did that Federal Labor Court (BAG) published a judgment in Erfurt on June 27, 2025 that caused a stir among many. The right to equal remuneration despite comparable work has been decided, and the impact is significant. A medical assistant (MFA) had sued because she earned significantly less than her colleague, who worked as an operational technical assistant (OTA). Despite consistent work in the surgical team, their lawsuit was dismissed - a clear indication that different salaries are permissible in certain cases when there are objective reasons, such as longer, more specific training.

The BAG's justification is in the context of the principle of equal treatment and collective bargaining autonomy. Employers are allowed to set different salaries as long as these differences follow a comprehensible logic. Especially when factors such as training, responsibility or the type of working time model play a role. However, it remains crucial that unequal treatment based on gender, origin or individual negotiating skills is not tolerated reported.

The challenge of wage disparity

The wage gap between men and women remains a central issue in Germany. Among the many causes are part-time work and choosing careers in social service sectors, which are often lower paid. According to that Federal Ministry for Family, Senior Citizens, Women and Youth The unadjusted gender pay gap is an astonishing 16 percent, while with comparable qualifications only 6 percent of the gap remains. This is alarming and shows that it is not just due to individual decisions, but also to structural problems.

The latest ruling could raise awareness of these discrepancies. Employers are increasingly facing the risk of being held responsible for lower pay for women in larger groups. The European right to equal pay for equal work or work of equal value applies here. The highlight is that the European legal situation comes into focus and thus the scope for national differences is further restricted.

What does the future hold?

A new EU directive on pay transparency will be issued from mid-2026. This stipulates that companies will be obliged to disclose their wage structures in the future. Companies will have a responsibility to make compensation structures transparent, and this change will often cause societies to falter. Hectic debates about justice and fairness cannot be ruled out. This is also recognized by the BAG, which with this decision paves the way for comprehensive discussions about pay in various professions underlined.

Overall, the ruling is a clear appeal to companies to rethink and modernize their pay systems. In order to effectively close the gender pay gap, not only a legal framework is necessary, but also a change in awareness in society. The hope is that this discussion will reach not only managers, but also the entire workforce - because fair pay must be a fundamental right for all employees.