On 27 February the Workplace Gender Equality Agency published gender pay gap data for private sector employers with 100 or more employees, for the first time. Here Annie Fenwicke, Principal of EDI at Work, explains what this means and how these data can be used to take action to improve gender equity in the workplace.
The gender pay gap (GPG) is the difference in average earnings between women and men in the workforce. In many ways, it is a proxy for gender equity progress. In 2023, the GPG was 21.7%, meaning that, on average, women in Australia are earning $26,393 less than men per year.
The Workplace Gender Equality Agency (WGEA) reforms that came into place this month aim to close this gap and accelerate workplace gender equality.
The figures published by WGEA are the median GPG for base salary, expressed as the percentage difference between women’s and men’s earnings at an organisation. Employers also can provide a statement that gives context to their results and outlines their plans for action. Currently, reporting does not include CEO remuneration, which can have a significant impact on the results. However, from 2025, WGEA will also report mean (average) GPGs including CEO remuneration.
The GPG is NOT the same as equal pay or a comparison of like roles – which has been a legal requirement in Australia since 1969. Instead, the GPG is the result of many social and economic factors that combine to reduce women’s earning capacity over their lifetime.
So how can each of us use these reforms as an opportunity to bring gender equity, diversity and inclusion (GEDI) issues to the forefront? Here’s a few ideas (and I would really love to hear any other creative and innovative thoughts you may have).
If you work with an employer who has released their GPG data:
Consider how this data compares with other employers in your sector?
How did the contextual statement land with you and your colleagues?
Look for opportunities to promote a conversation about the data with the leadership team, e.g. at staff town halls, and raise the GPG data at team meetings
Find opportunities to get involved by initiating or promoting GEDI initiatives in your organisation
Advocate the use of the GPG data to inform action in key areas for GEDI, such as recruitment and promotion practices, GEDI training, flexible and supportive workplace practices, and benefits.
If you work with an employer who has not been impacted by these changes, you can still raise the issue in similar ways, and we can all build momentum for GEDI changes by holding our employers to account.
International experience has shown that publishing GPG data increases transparency and can be a real game-changer by building expectations and pressure for change and driving employers to take action to improve GEDI in their workplaces. So, let’s make the most of this unique point in history and keep pressing for the cultural changes needed to remove barriers to the full and equal participation of women in the workforce, and thereby improve the workplace experience for all.