LBP 3 billions per month in extra bank profits because of gender wage gap

The International Labor Organization, ILO, noted in a report that 126 countries signed in 1995 the Convention C100 on equal remuneration for women and men workers for work of equal value, adding that 122 countries have signed the 1958 Convention No. 111 concerning discrimination in respect of employment and occupation. The ILO report indicated that 20 years later the number of signatory member states to the above two agreements rose to 171 and 172 respectively. However, and according to ILO, at the present very slow rate of progress in bridging the gender gap, equality in pay between men and women will not be achieved until the year 2086. Lebanon is an early signatory of the two fundamental ILO conventions which have become effectual by virtue of the legislative Decree No. 70 in 25/6/1977, but the Lebanese authorities has not indicated commitment to their enforcement. According to a banking sector human resources report published in 2013 by the Association of Banks in Lebanon, the total number of workforce in the said sector reached 18949 employees, including 8803 women who account for 46.5% of the total number of workers. The report indicated that the average salary rate of the female worker is lower by 15.2% than that of their men co-worker as an overall average of all categories of jobs. According to bank sources this disparity can be traced to the fact that women occupy a lower number of managerial positions as compared to men. However, the bank report does confirm that the average salary of a female worker is 10% behind her male colleague even within the same job title. As for senior positions, the average basic monthly salary of an assistant general manager stands at LBP 13,904,000 for a men against a LBP 11,94,000 for a woman of the same grade. The male central director of branches earns around LBP 6,461,000 against only LBP 4,601,000 for his female counterpart. Similarly, the male human resources director earns LBP 8,333,000 against LBP 5, 651,000 for the female co-director. The difference sometimes can exceed twice the salary, as in the case of the average salary of the bank’s organizational development manager which reaches LBP 7,369,000 for men compared to only LBP 3,192,000 for women of the same title. In conclusion, if one calculate on the basis of the average basic salary of all jobs for men which is estimated at LBP 2,657,000 and taking into account the total of 8803 women employees, one can clearly estimate that the banking sector is making an extra monthly profit of 3 billion and 565.215 million Lebanese pounds as a result of the gender pay gap and that is according to the calculations of Al Akhbar. (Al Akhbar, 9 March 2015)