France plans to impose fines of up to 1% of total wages on companies with a gender pay gap, The Wall Street Journal writes.

Under the new law, from January 1, 2019, companies will have to report a number of government-set indicators regarding how much they pay to women compared to men. Firms with a wage gap will be awarded three years to remedy the situation or be fined.

Such a position is unusually hard even for countries that are putting pressure on companies to close the gender pay gap, the article says.

By imposing fines, France seeks to create "commitments to achieve results," said Minister of Labor Muriel Penicoud in an interview with the WSJ.

“It’s as if I’m telling companies that instead of giving your money to the state, give it to women — that’s wiser,” he believes.

France was a pioneer in improving working conditions for women. The country was one of the first to provide maternity leave, it has state kindergartens. However, France has lagged behind many European neighbors in terms of fair pay.

According to the Statistical Office of the European Union (Eurostat), women in France earn 15.2% less than men, while in Italy the difference is 5.3%, in Belgium - 6.1%. However, in Germany, the economic center of the continent, women earn 21.5% less than men.

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