Gender pay gap narrows marginally in Australia, government report shows

By Renju Jose

The gender pay gap in Australia has narrowed marginally though women employees on average still earned A$28,425 ($18,590) less each year than their male colleagues, a government report said on Wednesday.

The total gender pay gap dipped by 0.6 percentage points to 21.8% for the year to March 2024 as more than half of employers improved the pay gap between men and women doing the same job in Australia, the Workplace Gender Equality Agency (WGEA) said.

"The results show change is happening, with a significant increase in employers investigating what's driving their gender pay gap and acting on the results," WGEA CEO Mary Wooldridge said in a statement accompanying the report.

An increase in the wages of low-paid workers, particularly in aged care, where women make up about 80% of employees, was the significant contributor. But female CEOs are paid annually an average of A$158,632 less than men, Wooldridge said.

More than 56% of employers and the majority in every industry improved their average total remuneration gender pay gap over the last year, she added.

The report comes as the centre-left Labor government aims to introduce legislation to the parliament this week that would require firms with 500 or more employees to commit to measurable targets to progress gender equality in their workplaces.

Employers must pick targets related to the gender makeup of the workforce, the gender pay gap, flexible working arrangements, workplace consultation on gender equality and efforts to prevent sexual harassment, Minister for Women Katy Gallagher said in a statement.

A report in February showed the gender pay gap at some of Australia's biggest firms was bigger than the national average.

Companies with more than 100 employees are required by law to reveal the pay of male and female employees every year. The next report is due in February 2025.