New figures in on national gender pay gap

New data has revealed Australia’s gender pay gap, with some states faring better than others.

The Workplace Gender Equality Agency (WGEA) has released its latest report on the national gender pay gap, noting it has dropped to 13.3 per cent. This puts the gap back to around where it was three years ago, when it sat at 13.4 per cent.

The gap means that for every $1 Australian men make on average, Australian women make 87¢.

On average, women working full-time earned a base salary of $1,653.60 per week, while men working full-time earned $1,907.10.

This means women earn $253.50 less than men every single week as a result of gender, WGEA flagged.

While the drop is a step in the right direction, WGEA director Mary Wooldridge urged employers and employees to be mindful that today’s gender pay gap only reflects base salary for full-time workers, meaning it’s only a limited reflection of the true situation.

“The gender pay gap is a handbrake on women’s ability to make ends meet. With inflation at 7.8 per cent, and rising, everyday essentials are becoming increasingly unaffordable,” Ms Wooldridge said.

“Women are $253.50 worse off every single week as a result of their gender.

“Over the course of one year, the weekly difference of $253.50 adds up to $13,182. That’s income that could have gone towards meeting bills, mortgage repayments or additional contributions to superannuation funds for retirement.”

State and territory breakdown

While the national gender pay gap sits at 13.3 per cent, there are some states and territories where this figure is a lot higher — and others where it’s a lot lower.

Western Australia has the largest gender pay gap at 22.1 per cent, with men earning an average of $478.10 more weekly than women.

Queensland and the Northern Territory fare the next worst, holding gender pay gaps of 14.6 per cent and 14.2 per cent, respectively. This translates into Queensland-based women earning $272.50 less than Queensland-based men per week, and Northern Territory-based women earning $265.50 less than Northern Territory-based men per week.

Victoria is also holding a higher gender pay gap than the nationwide figure at 13.4 per cent, with Victorian women earning $253.90 less than Victorian men per week.

NSW has a gender pay gap of 11 per cent, with women in the state earning $208.20 less per week. Meanwhile, ACT’s gender pay gap is sitting at 10 per cent, with women here earning $211.50 less per week.

South Australia and Tasmania have the lowest reported gender pay gap at 7.8 per cent and 6 per cent, respectively.

Women in South Australia, on average, earn $132.30 less per week, and women in Tasmania earn $96.80 less per week.

How businesses can be better

The WGEA is urgently calling for Australian employers to help close the gender pay gap.

“Employers who don’t make gender equality a priority will fail to attract and retain female talent and won’t benefit from the increased productivity, innovation and profitability that flows from embracing diversity in your workforce,” she said.

“We must not forget that today’s calculation is a limited reflection of the true gender pay gap because it doesn’t include bonuses, overtime payments or superannuation.”

“Today’s gender pay gap also doesn’t include the wages of part-time or casual workers, many of whom are lower paid and also women.”

Ms Wooldridge said employers who don’t recognise gender pay gaps within their business are sending a clear message to female employees.

“As a business leader, if you are aware that your organisation has a gender pay gap and you take no action to close it, you are effectively sending a message to women that the work they do is of less value than that of men,” she explained.

“Employers and business leaders need to step up and take action to ensure the work of all their employees is valued and rewarded equitably.

“By closing Australia’s gender pay gap, we will improve the lives of Australian women, their families and communities and move closer towards the goal of being a world leader in gender equality.”

Earlier this month, Labor introduced new legislation to help to create transparency in wages to try and close the gender pay gap.

The Workplace Gender Equality Amendment (Closing the Gender Pay Gap) Bill 2023 was introduced to Parliament and will create transparency by highlighting gender pay gaps at businesses with 100 staff or more. The government hopes this will encourage employers to close the gap.

Minister for Women Katy Gallagher commented on the announcement: “Women have waited long enough for the pay gap to close — let’s not wait another quarter of a century. On average, women working full-time can expect to earn 14.1 per cent less than men per week in their pay packets.”

“The gender pay gap is also holding our economy back, with $51.8 billion a year lost when it comes to women’s pay. On current projections, it will take another 26 years to close the gender pay gap. The bill will also reduce red tape for businesses making it easier to report.”

This legislation will come into effect in 2024, using data that organisations will need to disclose. If a company is recognised as having a gender pay gap, the information will be posted to Workplace Gender Equality Agency’s (WGEA) website.