Back
Business

Australia's Gender Pay Gap Narrows to 11.2%, Disparities Persist Across Industries and Companies

Generated on: Last updated: 2 sources
View source

Australia's Gender Pay Gap Narrows to 11.2 Percent, But Significant Disparities Remain

Australia's national gender pay gap has seen a positive shift, decreasing to 11.2 percent. This represents a 0.9 percentage point reduction from the previous year's 12.1 percent. Data compiled by the Workplace Gender Equality Agency (WGEA) from over 10,500 employers, encompassing 5.9 million workers across both private and public sectors, indicates that while the majority of employers reduced their pay gaps, significant disparities persist. Some major brands even reported an increase in their gender pay gap. The current gap remains above the five percent target range.

National Overview

The WGEA report reveals a stark reality: on average, women in Australia earn 88.8 cents for every $1 earned by men in total remuneration.

Half of the surveyed employers have a gender pay gap exceeding the national average of 11.2 percent in favor of men.

Men are almost twice as likely as women to hold positions in the top-quartile salaries, averaging $221,000 annually. Conversely, women are 1.4 times more likely to be in the lowest-paid positions, with average annual earnings of $60,000.

Understanding the Gender Pay Gap

Mary Wooldridge, WGEA Chief Executive, clarified a crucial distinction:

"The gender pay gap measures the average earnings difference between men and women across an employer, industry, or the nation, distinct from the concept of equal pay for equal work."

Factors identified as contributing to this pervasive gap include:

  • Higher rates of part-time employment among women.
  • Lower representation of women in roles or fields that offer bonuses or commissions.
  • Time taken by women for pregnancy and caring responsibilities.
  • Industry segregation, where over 60 percent of workers in a sector are predominantly men or women.

Industry-Specific Gaps

Certain industries continue to exhibit particularly wide gender pay gaps. The construction industry recorded the highest gap, with women earning 23.8 percent less in total pay than men. In this sector, only 10 percent of women are in the top pay quartile, compared to 37 percent in the lowest. Other sectors identified with notable gender pay gaps include airlines, health clinics, fashion brands, recruiters, and laser hair removal services.

Company-Level Findings

While the majority of employers demonstrated reductions in their gender pay gaps, some companies reported increases, and others maintain substantial disparities.

Companies Reporting Widened Gaps:

  • Qantas: The gender pay gap increased by 0.5 percent to 41.7 percent. Women constitute 44 percent of the workforce but hold one in seven high-salary roles (averaging $343,000), while comprising over two-thirds of low-salary positions (averaging $79,000).
  • BHP: The gap widened from 11.2 percent to 12.8 percent. Women make up approximately a quarter of top earners and two-thirds of the lowest-paid workers.
  • Advana Heartcare: The gap increased by nearly three percent to 69.2 percent.
  • Sonic Healthcare: The pay gap rose from 36.2 percent to 39.9 percent.

Companies Reporting Narrowed Gaps:

  • Commonwealth Bank: The gap narrowed by one percent to 21.3 percent.
  • NAB: Improved its gap by 0.9 percent.
  • ANZ: Improved its gap by 0.4 percent.
  • Macquarie Group: Improved its gap by 0.7 percent.
  • Healius Ltd: Reduced its gender pay gap by an impressive 13.3 percent in one year, now at 27.6 percent.
  • Nine (the publisher): Reduced its gap from 17 percent to 15 percent.

Companies with Notable Large Gaps:

  • Sydney Ultrasound for Women: Reported the largest gender pay gap at 79.2 percent, citing a small number of men in senior roles as a contributing factor.
  • Artisan Aesthetics: A cosmetic injections and laser hair removal service, reported a 68.2 percent gap.
  • Bell Financial Group: Showed a base pay difference of 7.4 percent between genders, but an overall pay difference of 55.5 percent, attributed significantly to discretionary payments such as bonuses.
  • Adelaide Cardiology and Heart Care Queensland also reported large gaps.
  • Among Australia's major banks, ANZ, NAB, Westpac, and Commonwealth Bank all reported gender pay gaps ranging from 17.2 percent to 21.6 percent, exceeding the national average.

Employer Accountability

WGEA Chief Executive Mary Wooldridge underscored the responsibility of employers:

"Employers should address gender equality by conducting detailed analysis, creating action plans, and setting targets, similar to other business objectives."

Employers with over 100 staff are legally required to submit their pay gap data to the WGEA under the Workplace Gender Equality Act 2012. The report noted that 244 employers failed to submit their required data, including brands such as Adidas, 2XU, Seafolly, the Laundy Hotels group, and various McDonald's franchises.