What is the gender pay gap?
The gender pay gap in Australia refers to systemic inequities in the workforce, such as pay differences for equal work, unequal representation in leadership roles and barriers to high-paying industries. According to the Workplace Gender Equality Agency (WGEA), the current pay gap in Australia stands at 21.8%, indicating that women earn $0.78 for every dollar men make in comparable full-time roles. This gap is even wider in some industries, particularly male-dominated fields like technology and construction.
It is important to distinguish between equal pay and the gender pay gap. Equal pay refers to paying men and women the same for the same work. The gender pay gap, however, also encompasses broader systemic issues such as occupational segregation, differences in opportunities and biases in hiring and promotion practices.
Related: Pay transparency: Australia closes the pay gap – considerations and opportunities for employers
Historical context and current data
Australia has made progress in addressing gender-based wage inequality, but working towards full parity is an ongoing process. Historical data indicates that women have consistently earned less than men since entering the workforce in significant numbers during the 20th century. Although societal attitudes have shifted and some remedial legislation has been introduced, prevailing practices and structural challenges still perpetuate these disparities.
Reports from the Workplace Gender Equality Agency Australia (WGEA) show that women are underrepresented in high-paying roles and industries and overrepresented in lower-paying sectors like aged care, education and hospitality. For example, according to WGEA gender pay gap data, fewer women hold leadership roles in male-dominated industries, and the so-called glass ceiling remains a widespread barrier.
Importantly, the consequences of this inequality extend beyond individuals. Employers failing to address gender pay disparities risk losing highly qualified staff, damaging their reputation and, ultimately, facing reduced productivity within their organisations.
Why a sense of belonging and fair opportunity matters
Workplaces that emphasise fairness, openness, and a sense of belonging often see stronger progress in addressing gender-related pay differences. When employees, regardless of gender, feel they have genuine access to opportunities, organisations sometimes observe fewer inconsistencies in hiring, promotion and pay outcomes.
In addition, teams made up of people with varied backgrounds and experiences can offer a wider range of viewpoints, which may support creativity and collaboration. Environments where people feel respected and fairly treated tend to encourage greater contribution and confidence. When organisations weave these values into their everyday practices, many report improvements in staff wellbeing, stronger engagement and more consistent performance across the business.
What employers need to know about legal obligations in Australia
Under Australian law, some employers have specific reporting responsibilities when it comes to gender pay patterns. For example, the Workplace Gender Equality Act 2012 requires non-public sector employers with 100 or more staff to submit an annual report covering several indicators, including pay. Failure to meet these reporting requirements may affect eligibility for certain government-related opportunities.
From 1 April 2026, changes to the Workplace Gender Equality Act mean large employers with 500 or more employees must select and commit to achieve three gender equality targets over a three-year target cycle. This includes targets relating to equal remuneration between women and men.
Ways organisations approach the gender pay gap
The following are ten ways organisations approach the gender pay gap in their organisations.
1) Looking at pay data across the organisation
Some employers choose to start by examining pay information across roles, departments and seniority levels to understand where differences may exist. This type of review can reveal patterns or gaps that may prompt further discussion. For example, data might show that people in similar roles are not paid consistently, which can help highlight areas worth exploring.
2) Using clear pay frameworks
Some organisations use transparent pay bands or salary ranges to explain how compensation is structured across roles. This approach can help employees understand how decisions are made and may strengthen confidence in internal processes. In Australia, a number of employers publicly share salary ranges as part of their effort to encourage openness.
3) Considering hiring and promotion processes
Some businesses review their recruitment and advancement practices to understand how decisions are made and whether any patterns are contributing to pay differences. Approaches such as standardised criteria, wider interview panels or anonymised resume screening are sometimes used to limit the influence of assumptions. Many employers also look at how accessible leadership pathways are for all staff.
4) Exploring flexible work options
Flexible working arrangements such as varied hours, hybrid work or shared roles are often noted as helpful for employees balancing work and caregiving. Organisations that offer these options sometimes report improved retention among staff who might otherwise find it difficult to remain in the workforce.
5) Supporting leadership development
Many employers explore ways to broaden access to leadership development. Mentorship, sponsorship and targeted training programs are sometimes used to help employees gain the experience and confidence needed for senior roles. These efforts can expand the pool of people prepared for future advancement.
6) Reviewing pay fairness over time
Many organisations review pay data on a regular cycle to understand how things are changing and to identify new patterns that may emerge. Ongoing reviews can help employers stay aware of shifts in hiring, promotion or retention that could influence pay outcomes.
7) Engaging with external industry bodies
Industry groups and agencies such as WGEA offer information, benchmarking data and sector-specific tools that some businesses find useful when examining pay patterns. These resources can provide context and help employers understand broader trends across their industry.
8) Encouraging open conversations
Workplaces that foster open discussions about pay fairness often report that employees feel more able to raise questions or share experiences. Regular forums, Q&A sessions or updates on workplace initiatives can help create space for dialogue and feedback.
9) Setting organisational goals around belonging and representation
Some employers outline goals related to fairness, representation and employee wellbeing as part of their broader strategy. These goals may include aims for balanced leadership teams or improved access to opportunities, and are often reviewed periodically to see how the organisation is tracking.
10) Raising awareness of unconscious bias
Training that explores how unconscious assumptions can influence decisions is used in many workplaces. These sessions aim to help staff recognise how bias might appear in hiring, promotions, or everyday interactions. Increasing awareness can contribute to decision-making that feels fairer and more consistent.
