Australia's Gender Pay Gap: Progress and Challenges

The gender pay gap in Australia has decreased slightly to 21.8%, with women earning A$28,425 less annually than men, despite improvements from over half of employers. New legislation aims to advance gender equality by requiring larger firms to set measurable targets. Disparities remain, especially in senior roles.

The gender pay gap in Australia has slightly narrowed, with women earning an average of A$28,425 less annually than their male peers, according to a government report issued on Wednesday.

As of March 2024, the gap decreased by 0.6 percentage points to 21.8%, thanks to more than half of Australian employers addressing pay disparities among employees performing the same roles, reported the Workplace Gender Equality Agency (WGEA). "Change is occurring, with many employers investigating the causes of their gender pay gap and taking action," said WGEA CEO Mary Wooldridge.

An uptick in the wages for low-paid workers, especially in aged care, where women comprise about 80% of the workforce, was a major factor in reducing the gap. However, female CEOs still earn an average of A$158,632 less than their male counterparts. A majority of industries saw improvements in the past year, noted Wooldridge.

The report coincides with the Labor government's plans to introduce legislation requiring companies with 500+ employees to set measurable goals for gender equality. These targets will focus on workforce gender composition, pay disparities, flexible work, gender equality consultations, and preventing sexual harassment, as stated by Minister for Women Katy Gallagher.

February's data revealed that the gender pay gap at some major Australian firms exceeded the national average. Companies with over 100 employees must annually disclose pay details for male and female workers, with the next report expected in February 2025.

(With inputs from agencies.)