Ruqayyah Snyder
The gender pay gap in Australia refers to the difference in average earnings between men and women across organisations, industries, and the entire workforce. While equal pay, or receiving the same wage for the same job, has been a legal requirement in Australia since 1969, the gender pay gap is influenced by various factors such as industry profiles, promotion opportunities, and structural biases. Organisations in Australia are increasingly recognising the importance of addressing the gender pay gap, with tools such as the gender pay gap calculator developed by the Workplace Gender Equality Agency (WGEA) to assist in identifying and analysing the causes of pay disparities. Legislative reforms, such as the Workplace Gender Equality Amendment (Closing the Gender Pay Gap) Bill 2023, aim to boost transparency and facilitate action towards closing the gap. As of August 2024, the gender pay gap in Australia was recorded at 11.5%, a record low, indicating progress towards achieving gender equality in the workplace.
| Characteristics | Values |
|---|---|
| Legal requirement for equal pay | Yes, since 1969 |
| National gender pay gap | 11.5% as of August 2024 |
| National gender pay gap over the past two decades | Between 13.9% and 19% |
| Full-time total remuneration gender pay gap | 20.8% |
| Gender pay gap in Western Australia | 22.1% |
| Gender pay gap in the Australian Capital Territory | 8.9% |
| Gender pay gap in female-dominated industries | Larger than the national average |
| Methods of setting pay for organisations | Awards, enterprise agreements, common law contracts |
| Data used to calculate national gender pay gap | ABS data |
| Organisations that conducted a gender pay gap analysis in 2018 | 40% |
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What You'll Learn
Legal requirements for equal pay
Australia has two key datasets that provide information on employee wages, which allow for the calculation of the gender pay gap at a national level. The gender pay gap is the difference between the median of what men are paid and the median of what women are paid, expressed as a percentage of the median man's earnings. The gender pay gap in Australia has hovered between 13.9% and 19% for the past two decades.
In Australia, equal pay has been a legal requirement since 1969, when the principle of "equal pay for equal work" was introduced. This was later widened in 1972 to include equal pay for work of equal value in line with the International Labour Organization's Equal Remuneration Convention, 1951. This meant that women were to be awarded the same rate of pay as men, regardless of the work they were doing, as long as it was assessed to be of comparable value.
Under the Fair Work Act, the Fair Work Commission can make an equal remuneration order, requiring certain employees to be given equal remuneration for work of equal or comparable value. Organisations committed to equal pay will ensure that the wages and conditions of jobs are assessed in a non-discriminatory way, valuing skills, responsibilities, and working conditions in each job.
The Workplace Gender Equality Act also requires Commonwealth public sector employers with 100 or more employees to report to the Workplace Gender Equality Agency annually as part of the Public Sector Reporting program. Transparency is an important tool in achieving gender pay equity, and under the Fair Work Act, employees have the right to share information about their employment terms and conditions.
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Gender pay gap reporting
In Australia, equal pay for equal work has been a legal requirement since 1969. However, the gender pay gap is a broader issue that looks at the average earnings of women and men across organisations, industries, and the entire workforce. While there is no specific requirement for employers to publish gender pay gap information, there are ongoing efforts to boost transparency and facilitate action towards closing the gap.
The Workplace Gender Equality Agency (WGEA) collects pay data annually from non-public sector organisations with 100 or more employees, covering over 4 million employees in Australia. This data includes superannuation, bonuses, and other additional payments. WGEA calculates the national gender pay gap using data from the Australian Bureau of Statistics (ABS), which is released in February and August. The gender pay gap is expressed as a percentage based on average weekly ordinary time earnings for full-time employees.
Under the Workplace Gender Equality Act 2012, employers with 100 or more employees are required to submit an annual public report to WGEA addressing gender equality indicators. These indicators include equal remuneration between women and men, the gender composition of the workforce and governing bodies, and the availability of flexible working arrangements. While the report does not currently require gender pay gap information to be published, WGEA will soon release this data for employers with 100 or more employees.
Organisations can take proactive steps to address the gender pay gap by utilising tools such as the gender pay gap calculator developed by WGEA and job evaluation specialists. This calculator helps organisations identify and analyse the causes of their gender pay gaps. Additionally, conducting pay reviews that specifically focus on gender-specific aspects of pay and different roles within the organisation can help identify and rectify any discrepancies.
Best-practice employers introduce initiatives that respond to the specific needs of their workplace. This includes offering flexible working arrangements, ensuring equal access to benefits, training, and promotional opportunities, and supporting women returning to work after parental leave. By addressing these issues, employers can improve equal opportunity and take meaningful action towards closing the gender pay gap.
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Initiatives to improve gender equality
While equal pay has been a legal requirement in Australia since 1969, there is still a gender pay gap. This gap is not a comparison of like-for-like roles, but it does show the difference between the average or median pay of women and men across organisations, industries, and the workforce as a whole. The gender pay gap in Australia has hovered between 13.9% and 19% for the past two decades, with the gap in some states and industries being even higher.
To address this issue, the Workplace Gender Equality Agency (WGEA) has developed a gender pay gap calculator to assist organisations in identifying and analysing the causes of the various types of organisational gender pay gaps. The WGEA also provides guides to help organisations strategise and take action to improve pay equity as part of their gender equality strategy.
Additionally, the Australian Public Service (APS) has developed a gender equality strategy for 2021-26, which seeks to drive practical and impactful action for lasting change. This strategy includes addressing sexual harassment and creating safe and respectful workplaces. The APS recognises the responsibility of leaders at all levels to hold themselves and others accountable for demonstrating gender equitable and inclusive behaviour.
The Australian Government is also committed to promoting gender equality and has appointed an Ambassador for Gender Equality to advocate for gender equality internationally. The government has committed $65 million for global and regional gender equality initiatives in 2022-23, in addition to its country-specific initiatives and contributions.
Overall, there are ongoing initiatives and strategies in place in Australia to improve gender equality and address the gender pay gap. These efforts are essential for ensuring fair treatment and opportunities for all genders and can have significant economic benefits for the country.
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Gender pay gap causes
While paying men and women differently for the same job has been illegal in Australia since 1969, a gender pay gap persists. This gap is a measure of how we value the contribution of women and men in the workforce.
The gender pay gap in Australia has hovered between 13.9% and 19% for the past two decades. In 2020, the full-time total remuneration gender pay gap was 20.8%, meaning men working full-time earned nearly $25,679 more than women working full-time. In 2025, the government's latest pay gap report found that Australian women earned nearly $30,000 less than men a year.
The gender pay gap is caused by a variety of factors, including:
- Social and economic factors that reduce women's earning capacity over their lifetime.
- Women and men working in different industries and jobs, with female-dominated industries and jobs attracting lower wages.
- A lack of workplace flexibility to accommodate caring and other responsibilities, especially in senior roles.
- Men holding more senior or technical roles within a company.
- Cultural expectations that caring responsibilities will fall to women, limiting their opportunities in the workplace.
- Companies not allowing senior roles to be held by part-time workers, with women making up the majority of part-time employees.
The Workplace Gender Equality Agency (WGEA) has developed a gender pay gap calculator to help organisations identify and analyse the causes of their gender pay gaps. WGEA also publishes resources to help organisations address pay equity and improve workplace gender equality.
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Strategies to close the gender pay gap
While equal pay has been a legal requirement in Australia since 1969, there is still a gender pay gap. This gap is not a comparison of like-for-like roles but shows the difference between the average or median pay of women and men across organisations, industries, and the workforce as a whole. In 2020, Australia's national gender pay gap was between 13.9% and 19%. This gap is the result of social and economic factors that combine to reduce women's earning capacity over their lifetime.
- Analyse the gender pay gap within your organisation: The Workplace Gender Equality Agency (WGEA) has developed a gender pay gap calculator to assist organisations in identifying and analysing the causes of the various types of organisational gender pay gaps. Once the problem is understood, organisations can strategise and take action to address the gap.
- Ensure job evaluations and grading processes are gender-inclusive: Organisations should ensure that the wages and conditions of jobs are assessed in a non-discriminatory way. This includes avoiding loaded language in job postings and anonymising the résumés of applicants.
- Create a gender-inclusive remuneration policy: Embed gender pay equity into your organisation's remuneration policy. This should include ensuring that pay is set by an award or collective agreement, as this has been shown to reduce the prevalence of gender pay gaps.
- Increase workplace flexibility: A lack of workplace flexibility to accommodate caring and other responsibilities, especially in senior roles, can contribute to the gender pay gap. By offering flexible work arrangements, organisations can help to reduce the impact of caregiving responsibilities on women's careers.
- Provide paid leave and sick days: Access to paid leave and sick days can help to close the gender pay gap by ensuring that women do not lose pay or their jobs due to caregiving responsibilities or illness.
- Address systemic barriers and gender discrimination: Organisations should identify patterns of gender bias in their policies and practices and make appropriate changes. This includes increasing women's access to mentors and leadership development opportunities.
- Raise the minimum wage: In Australia, women make up a disproportionate share of low-wage workers. Raising the minimum wage can help hardworking women better support their families and reduce the gender pay gap.
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Frequently asked questions
No, the gender pay gap is not illegal in Australia. However, it is a requirement by law that employees be paid the same for performing the same work or different work of equal or comparable value, regardless of gender. This has been a legal requirement since 1969.
The gender pay gap is the difference between the average or median pay of women and men across organisations, industries, and the workforce as a whole. Australia's national gender pay gap has hovered between 13.9% and 19% for the past two decades. As of August 2024, the gender pay gap is at a record low of 11.5%.
The gender pay gap is caused by a combination of social and economic factors that reduce women's earning capacity over their lifetime. This includes women and men working in different industries and jobs, with female-dominated industries and jobs attracting lower wages. Other factors include a lack of workplace flexibility to accommodate caring and other responsibilities, particularly in senior roles, and gender biases and stereotypes influencing hiring, promotion, and training opportunities.
