Gender pay gap shrinks but female CEOs face biggest shortfall
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The news: The gender pay gap has dropped by 0.6 percentage points to 21.8%, with new data from the Workplace Gender Equality Agency reporting a significant improvement in equality for lower-paid workers including in residential aged care.
For the first time, the agency has included CEO, head of business and casual managers' pay in the analysis and reporting.
The numbers: Almost one in four CEOs or head of business are women, and the pay gap at this level is the worst of all at 27.1%. Women who reach this level are enumerated an average $158,632 less than their male peers in similar roles. One in four boards have no women.
The analysis found 68% of employers are conducting gender pay gap analysis, up 13 percentage points from the prior year. And 90% of those were undertaken in the past 12 months. About three in four took action on the back of this internal analysis to reduce the pay gap.
Targets have become more popular, with 45% setting gender targets, with many aimed at increasing women in management, reduce the pay gap and have a gender-balanced governing body.
Parental leave is now offered by 68% of employers surveyed, up from 63%.
All occupations and industries had a gender pay gap that favoured male employees.
What they said: "Employers are being held to account on their gender equality performance by employees, prospective employees, investors and the community. Business leaders are being challenged to articulate the drivers of their gap and how they will address it,” WGEA CEO Mary Wooldridge said.
"Encouragingly, our results suggest the anticipated publication of employer gender pay gaps had a motivational effect," she said.
“But the national results show a persistent and pervasive gender pay gap still limits the lifetime earnings of Australian women, affecting their ability to save, invest and build long-term financial security for themselves and their families.”
Minister for Women Senator Katy Gallagher said the government had been aiming to lift wages "especially in feminised industries" in a bid to progress equality.
“To further accelerate the pace of change businesses will soon have to set targets for gender equality — this not only offers benefits for employees, but also employers, with improved retention, productivity, safety, and enhanced reputation," Gallagher said.
“The government wants to work with all employers to close the gender pay gap and make sure that Australian workplaces are fair, respectful, flexible and safe."
The source: Australia’s Gender Equality Scorecard 2023-24
