The truth about the latest gender pay gap data

Australia's latest gender pay gap data is in - and while some progress has been made, most workplaces still have a long way to go.

New figures from the Workplace Gender Equality Agency (WGEA) reveal that 79% of Australian employers have a gender pay gap beyond the target range of ±5%. That means men continue to earn more than women on average in most workplaces.

"The gender pay gap is still too wide, as women continue to be paid, on average, $28,000 less than men each year," says Mary Wooldridge, WGEA CEO.

"There is evidence of progress. It's not flashy. It's slow. But the barriers to fair access to opportunities and outcomes is being improved through the deliberate careful action of employers."

Since 2014, employers with 100 or more employees have been required by law to provide the WGEA with data such as the gender composition of their workforce and the pay of men and women.

But for the first time, the report now shares the individual gender pay gap and pay scale results of 7800 employers and 1700 corporate groups, shedding light on the experience of 5.3 million Australian workers. So, what does it tell us about gender inequality, and where does your pay package sit within your organisation and industry?

What is the gender pay gap?

The gender pay gap is not about equal pay for equal work - Australia has had laws mandating equal pay since 1969. Instead, it reflects the difference in average earnings between men and women across an organisation, industry, or the entire workforce.

The WGE defines it as "a measure of how we value the contribution of men and women in the workforce."

Why does the gender pay gap exist?

Despite progress, the gender pay gap persists due to several structural and societal factors, including:

Industry segregation - female-dominated industries, such as health and education, tend to attract lower wages.

Career interruptions - women take more time out of the workforce for caring responsibilities, affecting promotions and long-term earnings. Men account for only 17% of all primary carer leave taken, according to the WGEA.

Part-time work - women are more likely to work part-time, limiting career progression and superannuation growth.

Unpaid labour - women still shoulder a disproportionate share of household and caregiving duties, affecting their availability for higher-paying roles.

Workplace bias - the conscious and unconscious discrimination in hiring, promotions and pay decisions - is another issue that contributes to the gender pay gap.

For example, an Australian QuestionPro survey in February found women are still being about their intentions to have children and family responsibilities in job interviews and in the workplace.

Is the gender pay gap getting better?

There are signs of improvement.

According to WGEA, 56% of employers reduced their gender pay gap in the past year. More companies are also scrutinising their pay structures - 68% of employers now analyse their gender pay gaps, up from 55% a year earlier.

The Financy Women's Index (FWX), which tracks gender equality in Australia, also shows progress, rising to 77.59 points out of 100 in December 2024, its highest level in over a year.

The report found improvements in three key data points: A record number of women on ASX 200 boards; a narrowing of the gender gap in unpaid work; and growth in female employment, with the FWX Employment sub-index rising to the highest it has been since June 2023.

Women are also leading job growth. Since January 2023, full-time jobs for women have grown by 6.1%, outpacing 4.1% growth in male full-time employment.

Despite this economic momentum, only 28.1% of women plan to ask for a pay rise this year, compared to 42.5% of men, according to QuestionPro.

AMP chief economist Dr Shane Oliver warns that policy shifts - such as changes to flexible working arrangements - could slow progress.

"There's been further progress towards financial equality for women in Australia," Oliver says. "But we still have a long way to go - particularly in areas like education and unpaid work."

What the pay gap data means for you

For the first time, individual employer results have been made public, allowing employees to assess how their workplace compares and use that information to push for fairer pay and policies.

The transparency also allows workers to identify employers leading the way - such as Helia Group Limited, a company specialising in lenders mortgage insurance, which has achieved gender pay equality for two consecutive years.

Helia's average gender pay gap is -3.4%, meaning women, on average, earn slightly more than men at the company. This contrasts with the insurance industry's gender pay gap of +24.8%, making Helia a positive outlier in its sector.

Helia attributes its success to a deliberate focus on gender equity, including:

• Leadership targets for women at the board and senior management levels,
• Career development programs to build a pipeline of future female leaders,
• And equal pay analysis during performance and remuneration reviews.

Beyond the gender pay gap, the WGEA report also breaks down earnings quartiles for reporting employers, offering insights into salary distribution.

The data, however, can be difficult to interpret. Take Woolworths Group Limited, for example - the retail giant operates under Wesfarmers, one of Australia's largest employers.

In Woolworths' general workforce, the top 25% of earners make $122,000 per year. But in Wesfarmers' corporate division, the top quartile earns an average of $970,000. Meanwhile, women make up 82% of the lowest-paid quartile in the corporate group.

Despite its complexities, this data helps employees understand where their salary sits within their company and industry.

What can employees do about the gender pay gap?

The latest gender pay gap data confirms that while change is happening, it remains slow. While more employers are analysing their pay structures, only 21% have closed the gap.

For employees, this new level of transparency offers a powerful opportunity to question:

• Are you being paid fairly for your role?
• Does your employer have a gender pay gap beyond 5%?
• Is your industry taking meaningful steps toward gender equality?

With women driving job growth and bargaining power increasing, now may be the time to push for fairer pay, greater transparency, and stronger workplace policies. The data is public. The next step is using it to drive real change.

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