Australia’s gender pay gap narrows but major disparities remain

The national gender pay gap in Australia has narrowed for the second consecutive year, according to the latest data from the Workplace Gender Equality Agency (WGEA), though significant disparities remain in pay and representation across sectors and seniority levels.

Pay gap progress

The national gender pay gap now stands at 21.1 percent, down 0.7 percentage points from the previous year. This means that, for every AUD $1 earned by men, women receive AUD $0.789. Annualised, this amounts to a difference of AUD $28,356 in average earnings between men and women across the country.

Every state and territory reduced its gender pay gap during the period. Western Australia continues to have the largest gap at 28.8 percent, while Tasmania reports the smallest at 10.6 percent.

Incentives and bonuses

The analysis also looked at discretionary payments such as bonuses, allowances, and overtime. On average, men earn 60 percent more than women in these payments. Discretionary payments form a more significant portion of men's total remuneration-12 percent compared to 6 percent for women-highlighting another area of disparity.

Progress in parental leave

Data indicates a rise in men's participation in primary carer parental leave. Men now take 20 percent of all primary or universal parental leave, a three percentage point increase over 12 months. This shift suggests gradual changes in workplace norms around caring responsibilities.

Leadership representation

Women account for 22 percent of chief executive officers, a figure unchanged from the previous year. Key management personnel who are women rose by two percentage points to 39 percent, and 43 percent of all managers are women, up one percentage point. Despite these improvements, many organisations' leadership ranks remain male-dominated.

On company Boards, women now hold 33 percent of seats and 21 percent of Chair roles, with both figures rising by one percentage point. However, 24 percent of Boards still have no women members. The gender composition in workplaces remains imbalanced, as two-thirds of employees work in organisations dominated by one gender.

Employer performance

The WGEA data shows that 50 percent of employers have a gender pay gap above 11.2 percent, and just 22.5 percent fall within the target range of minus five to plus five percent. This suggests that, while some employers have achieved progress in pay parity, most still have work to do.

Key priorities

The Agency identified three main areas of opportunity for employers: promoting workplace safety, improving gender balance within organisations and on Boards, and challenging stereotypes about leadership, work, and caring roles.

"Closing the gender pay gap requires employers to look at the roles women and men play within their organisations, the value placed on different forms of work, and the opportunities provided for advancement and caring responsibilities," said Mary Wooldridge, Chief Executive Officer, Workplace Gender Equality Agency.