This might be off-topic for its general connotation but I believe it's part of a broader discussion about work and pay-gap, especially considering what's happening in the EU in recent years.
As a member of the European Union (EU), you might assume that you are entitled to equal pay for equal work, regardless of where you live within the EU. However, geographical pay differentials are creating an environment where employees performing the same job are paid different salaries primarily based on variations in the cost of living as a factor to determine pay differentials. This can create barriers to equal opportunity and perpetuate existing economic and social inequalities within the EU.
The cost of living is a good indication of pay gap differentials within the EU because it takes into account the fact that the cost of goods and services can vary widely depending on the region. However, it doesn’t always capture the complete picture of the regions' expenses. Additionally, while the cost of living can help to adjust for regional differences in the price of goods and services, it doesn't necessarily address the issue of fair compensation for the same work. If two people are doing the same job, they should be paid the same amount regardless of where they live, especially with the spread of work-from-home practices.
Unfair salary discrepancies based on geographical criteria can perpetuate existing economic and social inequalities within the EU. This can result in employees in certain regions being locked into lower-paying jobs and unable to achieve financial security and stability, affecting their quality of life and struggle to afford housing, healthcare, and other basic necessities. Furthermore, it can erode trust in the EU and its institutions, which are founded on the values of fairness, equal opportunity, and solidarity.
On a psychological level, employees in lower-paying regions feel that they are not being fairly compensated for their work, and they may be more likely to seek employment elsewhere. This can result in a “brain drain” where talented workers leave certain regions, which can have a negative impact on local economies.
The Freedom of movement of people, goods, and services may reduce the existing pay gaps between EU members, but this is not guaranteed. Labor laws must determine the legal boundaries for salary determination to ensure that equal opportunity and fair compensation are upheld throughout the EU.
What do you think? Are geographical pay differentials creating barriers to equal opportunity in the EU and undermining principles of fairness? Share your thoughts in the comments below.