The Equal pay gap is currently its lowest point ever. Progress is evident as the the gender pay gap has been closing at a rate of 1.3% per year since 2022. This is a decrease from 12% in November 2023, and 14.1% in May 2022
Definitions
Equal pay:
Requires employees to be paid the same for performing the same work or work of similar value, regardless of gender. In Australia, this has been a legal requirement since 1969.
Gender pay gap:
The difference in average or median pay between men and women across organizations, industries, and the workforce as a whole. It’s expressed as a percentage of men’s earnings
The gender pay gap is a simple calculation that always stays the same. It is the difference between the average pay for men and women, expressed as a percentage of men’s pay. You may see different figures for the gender pay gap. The calculation doesn’t change. What changes is how people define ‘pay’ or ‘remuneration’. Pay can be defined as base salary or total pay, which includes super and bonuses. It could be what someone earns in an hour, a week or a whole year. It can be full-time workers only or include part-time and casual workers too.
Regardless of what measure of pay you use, there is always a gender pay gap in favour of men in Australia.
Equal pay alone doesn’t create workplace equality. The gender pay gap is an important figure that highlights the social and economic factors that reduce women’s abilities to earn.
Employer gender pay gap data
Australia still has a sizable and pervasive gender pay gap.
The total remuneration gender pay gap has dropped by 0.6 percentage points to 21.1%, when compared to last year. With CEO and Head of Business data added in for the first time, it has increased marginally to 21.8%.
Women earn, on average, 78c for every dollar men earn, equating to $28,425 less each year
50% of employers have an average total remuneration gender pay gap over 12.1% and a median gender pay gap over 8.9% (decreased from 9.1% last year)
A majority of employers overall (56.4%) and the majority in every industry improved their average total remuneration gender pay gap over the last year
More employers are taking action.
WGEA’s results indicate more employers are motivated to understand what’s driving their gender pay gap and taking action on the findings. Further:
- the proportion of employers conducting a gender pay gap analysis increased 13pp to 68%. Of those, 90% did the analysis in the past 12 months and the proportion taking action on the results increased 15pp to 75%
- employers have a policy or strategy to consult with their employees on gender equality (up 20pp to 51%) and more employers reported they consulted their employees (up 22pp to 69%)
- nearly half of all employers (45%) of employers are setting targets. Of those more than 2 in 3 employers (68%) are setting targets to increase women in management, 59% set targets to reduce their gender pay gap and 35% to have a gender-balanced governing body
- more employers are offering paid parental leave (up 5pp to 68%) and a greater proportion of primary carer parental leave (up 3pp to 17%) is being taken by men.
But more action is needed in a range of areas including:
- just 1 in 4 of CEO/HOBs are women and the gender pay gap for these key roles is the highest of all managers at 27.1%. Women CEO/HOBs are paid, on average, $158,632 less total remuneration than men
- 1 in 4 boards still have no women and in men-dominated industries this is 41%
- 100% of occupations and industries have a gender pay gap in favour of men
- 30% of women work part-time, but only 7% of manager roles are part-time
- 28% of employers are not collecting information on the prevalence of sexual harassment in their workplace.
Changes to Australia’s work laws are improving gender equality
In the past two years, there have been major changes to Australia’s main work law – the Fair Work Act 2009:
- Fair Work Amendment (Paid Family and Domestic Violence Leave) Act 2022
- Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022
- Fair Work Legislation Amendment (Protecting Worker Entitlements) Act 2023
- There has also been a change to the law on paid parental leave – the Paid Parental Leave Act 2010: Paid Parental Leave Amendment (More Support for Working Families) Act 2024
What do these changes entail?
Paid Family and Domestic Violence Leave
This change introduced 10 days of paid family and domestic violence leave for all workers. Family and domestic violence is a national crisis. On average, a woman is killed each week by a partner, ex-partner or family member in Australia. Family and domestic violence isn’t always physical nor is it always visible. It can be physical, sexual, emotional, psychological, social, cultural, spiritual or financial in form. It can happen online as well as in-person.
To flee a violent relationship, on average, costs $18,000. The purpose of having the 10 days paid leave is to ensure victim-survivors have time and money to help deal with the impact of that family and domestic violence.
The entitlement to 10 days paid family and domestic violence leave per 12-month period came into effect on 1 February 2023 (1 August for businesses with less than 15 employees). It is now part of the National Employment Standards; accessible to all workers, including casuals.
From December 2023, new laws came into effect that provide protection for employees and potential employees against any discrimination they may face because of them experiencing family and domestic violence.
Secure Jobs, Better Pay
This change focused on improving job security, gender equality and workers’ right to request to work flexibly. It also simplified and strengthened how union members can use their collective voice to bargain for and win better pay and conditions.
Protecting Worker Entitlements
This change brought in greater flexibility for workers taking unpaid parental leave and the entitlement to superannuation in the National Employment Standards. It also strengthened protections for migrant workers.
Closing Loopholes (No.2)
This change saw improved rights and more choices for gig workers in casual employment. It also set out to improve workers’ work-life balance with the introduction of the right to disconnect . From August 26, 2024 (or August 26, 2025 for small businesses), the Fair Work Act gives most employees to the right to refuse to monitor, read or respond to contact (or attempted contact) from an employer outside of the working hours – unless such refusal is unreasonable.
The right also extends to contact by third parties where the contact relates to work.
Who is covered by the Right to Disconnect?
The Fair Work Act, which contains the Right to Disconnect laws, covers most Australian employees. With the increasing availability of digital communications, many employees find themselves in a position of being constantly bombarded with emails, calls and text messages, beyond work hours. This legislation is a significant step forward for workers’ rights in Australia.
That means that workers have extra rights when it comes to being contacted after-hours or being requested to monitor emails or phone calls when not at work.
This important reform will help to protect workers’ personal time and allow them to take the time they need to refresh and look after their mental and physical health.
From August 26, 2024 (or August 26, 2025 for small businesses), the Fair Work Act gives most employees to the right to refuse to monitor, read or respond to contact (or attempted contact) from an employer outside of the working hours – unless such refusal is unreasonable.
The right also extends to contact by third parties where the contact relates to work.
Paid Parental Leave
This change broadens the availability and eligibility of the government’s Paid Parental Scheme (PPL). The key changes are:
- Expanded eligibility to access the scheme
- A staged increase in PPL to 26 weeks by July 2026
- Removal of Dad and Partner Pay in favour of an expanded gender-neutral and flexible scheme that can be taken by either parent and shared between parents as they see fit
This scheme currently offers up to 22 weeks of paid leave for workers while you care for a child born or adopted before 1 July 2023.
Under new laws that passed Parliament in March 2024, the amount of time available for leave is increasing to 24 weeks on 1 July 2025; and 26 weeks on 1 July 2026.
Pay transparency
Furthermore, there is now greater transparency about pay, including outlawing pay secrecy clauses and improvements to company gender pay gap reporting. Pay secrecy is when workers are banned from talking about how much they earn with their coworkers, or from asking others about their pay.
It means that in workplaces where some workers are paid less than others for the same job, they often won’t know about it – or if they do, they can’t act without repercussions.
Pay secrecy can lead to serious inequality at work and is a big contribution to Australia’s gender pay gap.
But all that has changed, thanks to the Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 . As of 7 December 2022:
New employment contracts and Enterprise Agreements made after this date are not allowed to contain pay secrecy clauses.
As of 7 June 2023, employers who continue to include pay secrecy clauses in new written agreements and employment contracts are liable for penalties.
Prohibiting workplace sexual harassment
Sexual harassment of workers and prospective workers is now prohibited. Employers are now under a positive duty to take all reasonable and proportionate steps to eliminate sexual harassment from their workplaces.
Workers will be able to make applications to the Fair Work Commission and the federal courts in relation to sexual harassment disputes, and the Fair Work Commission will be able to grant remedies in relation to sexual harassment.
Workers have protection from sexual harassment by any person, including third parties, in the workplace. Workers can seek assistance from the Fair Work Commission early on, have claims dealt with quickly and resolve issues before they escalate further and prevent future conduct.
Flexible work extension
The right to request flexible working arrangements is now available to employees (or a member of their immediate family or household) experiencing family and domestic violence and employees who are pregnant.
Employers have new obligations before they can refuse a request from an employee (which they must do in writing within 21 days), including discussing the request with the employee, making a genuine effort to find alternative arrangements and considering the consequences of refusal for the employee.
There is more work to be done
- Just 1 in 4 CEO/HOBs are women and the gender pay gap for these key roles is the highest of all managers at 27.1%. Women CEO/HOBs are paid, on average, $158,632 less in total remuneration than men
- 1 in 4 boards still have no women and in men-dominated industries this is 41%
- 100% of occupations and industries have a gender pay gap in favour of men
- 30% of women work part-time, but only 7% of manager roles are part-time
- 28% of employers are not collecting information on the prevalence of sexual harassment in their workplace.
The full results of WGEA’s 2023-24 Employer Census, including comparisons at the national, industry and employer level can be found in the Data Explorer at WGEA website.
Source: Australian Unions; Minding the Gap 2024; Workplace Gender Equality Agency (WGEA)