The national gender pay gap among private companies currently sits at 21.1 per cent. While it has improved slightly over the past year, women still earn $28,425 less than men on average. The gap is even wider for women in their late 50s who typically earn $53,000 less per year than their male counterparts, or 32.6 per cent.
Male-dominated sectors like construction, often offer higher average earnings than female-dominated fields like education and healthcare. These differences underline the need for targeted reforms to lessen the gap.
Wide Pay Gaps in Management Roles
Management positions generally reveal an even greater gap. Men occupy 58 per cent of management positions and 2023 – 2024 figures showed that female CEOs earn 25% less on average than their male equivalents. Another revealing statistic is that only about 25 % of CEOs are women and about 33% of board members are women. In some industries like construction, more than 50 per cent of companies have no women on the board.
Government and Employer Responses
In response to these challenges, the federal government has introduced changes requiring companies with more than 500 employees to set gender targets. Such targets include narrowing the pay gap, increasing diversity in the boardroom and adopting flexible working arrangements. The Workplace Gender Equality Agency’s annual reporting system plays a key role in tracking these efforts. The system assesses gender balance across industries, evaluates remuneration patterns, and monitors employer policies.
There are some positive trends, such as an increase in parental leave for men and a growing number of employers analysing their own gender pay gaps. The agency also reports that more employers are prioritising family-friendly practices, including flexible hours and additional paid parental leave which more men are taking. Such changes can help to balance women’s roles at home giving them the flexibility to pursue their ambitions.
Sector-Specific Improvements
Some sectors have shown significant progress. In aged care, retail, accommodation, and food services, pay for women has increased following wage adjustments by the Fair Work Commission. For example, a 15 per cent minimum pay rise for aged care workers contributed to narrowing the gap and remuneration for women increased by 5.9 per cent in the past year.
Looking Ahead
While Australia has made strides in reducing the gender pay gap, significant disparities remain, especially for older women and female managers. With government action, employer accountability, and structural changes there is hope the gaps will be bridged further in coming years.
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