Equal Pay Day: Men out-earn women by $13,000 a year

WGEA director says the new data is a stark warning for employers

BY Jess Bell 30 Aug 2021

Today marks Australia’s Equal Pay Day, signifying the 61 extra days women in Australia must work on average to receive same pay as men.

This year, the Workplace Gender Equality Agency (WGEA) announced the gender pay gap had gone up by 0.8% compared to the previous six months and now sits at 14.2%. The disparity equates to a gap of $261.50 per week between women and men and a total of just over $13,000 in the last financial year.

So why has the gender pay gap increased in the last six months? The ABS has pointed to a rise in wages in the construction industry - predominately male dominated sector – which last year benefitted from the government’s financial stimulus during the first wave of the pandemic.

WGEA Director Mary Wooldridge said the increase should serve as a warning to employers and a reminder that sustained commitment and effort is needed to drive the pay gap back down.

“Equal Pay Day is an ideal opportunity to remind employers around the country that one of the key levers of change is through gender pay audits. These audits help employers identify and address discriminatory pay, to ensure that women are equally compensated and valued,” she said.

“Research proves that regular audits close pay gaps faster. The 2021 Gender Equity Insights Report from BCEC and WGEA showed that employers who consistently did pay audits between 2015-20 closed their managerial pay gaps faster than all other companies. By contrast, those who stopped doing pay audits actually saw their managerial pay gaps increase.”

Speaking to HRD, Kristen Pimpini, regional vice president of ANZ at cloud software firm Twilio, said conducting annual pay analysis through an independent vendor is critical in maintaining a fair and equitable compensation structure.

“This analysis considers elements that impact compensation like location, level, role, and performance, and if we find differences in pay based on gender or race, we make upward adjustments to address those differences,” he said. “This analysis also helps us understand how our processes are working so we can continue to evolve our practices to ensure equity and fairness."

This year, the WGEA is calling on Australians to become active advocates by starting conversations about pay disparity and asking: #WhatsYourGap? Worryingly, according to the current data trend, it will take 26 years to close the total remuneration gender pay gap.

But as well as analysing renumeration through a gendered lens, there are a number of levers organisations can pull to positively shift the dial. Equal paid parental leave, bias training, and women in leadership mentoring schemes are just a few measures used by top organisations.

Rosie Cairnes, vice president of APAC at educational technology firm Skillsoft, said the gender pay gap is a historic issue that stems from outdated views about a woman’s role in the workplace.

“The reality we must face is that if we have brains, we have bias. For businesses that care deeply about their values and reputations, it is important to understand that all forms of bias and discrimination can manifest rapidly and erode a company’s integrity - and its bottom line - from the inside out,” she told HRD.

“Considering the numerous legal, financial, and cultural risks posed by ignoring unconscious bias, all companies are wise to take control and create programs to increase awareness of unconscious bias so that senior executives, HR managers, and other employees can understand the problem better and work to combat it.”