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Australia's National Gender Pay Gap Narrows to 11.2%, Company Data Shows Varied Progress

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Australia's Gender Pay Gap Narrows to 11.2%, But Disparities Persist

Australia's national gender pay gap has decreased to 11.2%, a 0.9 percentage point reduction from the previous year's 12.1%. This data, compiled by the Workplace Gender Equality Agency (WGEA) from over 10,500 employers covering 5.9 million workers, indicates a positive trend.

Women on average earn 88.8 cents for every dollar earned by men in total remuneration.

While the majority of employers showed a reduction in their pay gaps, specific company data reveals varied performance, with some major brands experiencing a widening of their disparities.

National Findings and Context

The WGEA report, which includes both private and public sectors, found that the national gender pay gap, now at 11.2%, remains above the five percent target range. Analysis of salary quartiles demonstrated that men are almost twice as likely as women to hold top-quartile salaries, with an average of $221,000. Conversely, women are 1.4 times more likely to be in low-income positions, averaging $60,000.

Employers with over 100 staff are legally mandated to report their pay gaps to the WGEA. The latest reporting cycle marks the first time government agencies were included, with public broadcasters such as the ABC and SBS providing data. The WGEA identified 244 employers, including brands like Adidas and McDonald's franchises, who did not submit their required data.

Understanding the Gender Pay Gap Methodology

WGEA Chief Executive Mary Wooldridge clarified that the gender pay gap measures the average earnings difference between men and women across an employer, industry, or the nation. This is distinct from the concept of equal pay for equal work. Factors contributing to this gap include women's higher rates of part-time employment, lower representation in fields with significant bonuses or commissions, and time taken for pregnancy and caring responsibilities. Industry segregation, where one gender constitutes over 60 percent of the workforce, also plays a role.

The methodology has been a subject of public discussion, with some social media users questioning whether the data accurately represents a "pay gap" or an "earnings gap" based on employment choices rather than unequal pay for the same role. In response, ABC News, which reported on the WGEA data, reiterated the agency's explanation that the figures reflect average earnings differences across various factors rather than a direct comparison of men and women performing identical work.

Industry-Specific Disparities

Industries identified with significant gender pay gaps include airlines, health clinics, fashion brands, recruiters, and laser hair removal services. The construction industry exhibits the highest gender pay 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. Conversely, the presence of male nurses in female-dominated care sectors has been cited as an example of the benefits of gender diversity in workforces.

Company-Specific Performance Insights

While the national average improved, individual company data showed varied outcomes:

Companies with Widening Gaps:

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

Companies with Narrowing Gaps:

  • Commonwealth Bank: The gap narrowed by one percent to 21.3 percent.
  • NAB, ANZ, Macquarie Group: These major banks showed incremental improvements of 0.9 percent, 0.4 percent, and 0.7 percent, respectively.
  • Healius Ltd: This pathology provider reduced its gender pay gap by 13.3 percent in a single year, now at 27.6 percent.
  • Nine (publisher): Reduced its gap from 17 percent to 15 percent.

Companies with Large Gaps:

  • Sydney Ultrasound for Women: Reported the largest gender pay gap at 79.2 percent, attributing it to a small number of men in senior roles.
  • Artisan Aesthetics: Reported a 68.2 percent gap.
  • Adelaide Cardiology and Heart Care Queensland: Also reported large gaps.
  • 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.
  • Bell Financial Group: Showed a base pay difference of 7.4 percent between genders, but an overall pay difference of 55.5 percent, influenced by discretionary payments like bonuses.

Media Sector Overview

In the media sector, the WGEA data identified varying gender pay gaps. The ABC recorded an internal gender pay gap of 10.2 percent, an increase from 9.8 percent in the previous period. Other media companies reported lower figures, including News Corp (5.6 percent), Australian Associated Press (5.8 percent), and Ten (6.5 percent).

Recommendations for Employers

Mary Wooldridge, WGEA CEO, stated that employers should address gender equality with the same analytical rigor as other business objectives. This involves detailed analysis, the creation of action plans, and the setting of targets for accountability.