Recently, the Australian Government’s Workplace Gender Equality Agency (‘WGEA’) published data on the gender pay gaps within workplaces: WGEA gender pay gap for 2022-23. 

How does it work? 

The data collected by WGEA seeks to measure how men’s and women’s contributions are valued in the Australian workforce with WGEA, for the first time, publishing the specific reports of gender pay gaps in individual workplaces. WGEA used this nation-wide data to calculate the difference between the median income of men and the median income of women in the same workplace and this data has also been compared across industries, workforce sizes and states.  

It is not a measure of equal pay for equal work. 

WGEA considers neutral gender pay gaps (those with a disparity between -5 and +5%) as ideal and the target that all employers should be working towards. 

What were some notable findings? 

WGEA found that the national median total remuneration gender pay gap is 19%. That means that over the course of the year the median woman was paid $18,461 less than what the median man was. Moreover, it was found that half of the employers had a gender pay gap favouring men by more than 9.1%. Around 30% of employers reached the neutral gender pay gap target. 

WGEA’s report noted some significant general trends including that: 

• industries with the highest pay rates have the highest gender pay gaps – over 90% of employers in Mining, Electricity, Water and Waste Services and Financial and Insurance Services had a gender pay gap in favour of men; 
• additional payments such as bonuses, overtime and commissions, contributed to 37.4% of the WGEA median total remuneration gap and are payments found to be more common and larger in male dominated industries; 
• the largest employers (those with over 5,000 employees) were more likely to reach the neutral target; 
• employers with more women in leadership corresponded to a lower gender pay gap, despite the specific earnings of those executive roles not being included in the calculation. 

What can employers do about the gender pay gap in their respective workplaces? 

Many organisations are already on a journey that seeks to address some of the systemic issues within their industry and/or workplace and this data told them nothing new, whereas other organisations have been caught off-guard by the widespread interest.  

In relation to the data and report itself, employers are able to submit an Employer Statement which will be publicly available alongside each employer’s name on the WGEA Data Explorer. WGEA’s report focuses specifically on comparing the medians of total remuneration, but as just one of a handful of measures of the gender pay gap, this doesn’t capture all the detail and nuances of pay in each individual workplace. Employer Statements can help contextualise the results and address the specific challenges faced and reasons behind them, as well as demonstrate how far they have come on their journey towards a neutral gender pay gap.  

A number of organisations have been put into the spotlight since the data was published by WGEA. In many cases the criticism has not been solely about the fact of a pay gender disparity. Rather it is the presence of a significant pay gender disparity in circumstances where the organisation otherwise publicly holds themselves out to be transparent with pay, employers of choice and ultimately considers there is nothing more to do.  

Having said this, in our experience a knee jerk reaction to the data will not ultimately produce long term, sustainable solutions. Monetary compensation, in and of itself, is not actually the long-term answer. Further, while having regard to national trends is important and helpful, an employer needs to undertake an assessment to understand the issue within the context of its own, specific and unique workplace. Conducting a desktop audit can be a key first step to understanding the size and nature of the gender pay gap in your own work environment. If those initial results do not meet the mark and “there is more to be done”, then it is possible to delve deeper and into broader contributing factors by way of Culture Audits. 

The gender pay gap is a complex issue, but PCS is able to offer employers specific advice and tools to help navigate it.

Veronica Lee, Senior Associate and Daniel Prodigalidad, Paralegal