There’s a moment when women entering the workforce in their late teens earn slightly more than men of the same age.
But the moment is fleeting and the average gender pay gap for this age group is just two per cent in favour of women, hardly enough for the lifetime of earning less than men that is to come.
The gender pay gap switches to 1.1 per cent in favour of men for those aged 20 to 25, and rises until it peaks at 31.4 per cent for those aged 55 to 59. At that point, the gender pay gap amounts to men earning an average of $53,000 more than women each year.
The gender pay gap continues until retirement and carries a price tag larger than the median house price in Melbourne. Men have pocketed an additional $1.5 million more than women by retirement when the cumulative financial impact is added, including the earnings difference for every age from 15 to 67.
That’s according to The Ages and Wages report released by the Workplace Gender Equality Agency today, based on employee information collected for the first time in 2024 and covering 5.1 million working Australians working at 7414 employers.
With such a large data set, the report offers a unique perspective on pivotal age periods when the gender pay gap accelerates. Data that can help policymakers and employers in addressing key intervention moments that will ultimately support women’s economic freedom.
One key moment is around the age of 30, when the gender pay gap rapidly accelerates. WGEA says the lack of part-time manager roles (making up just 7 per cent of such positions), as well as bonus and overtime systems in favour of men, are critical drivers of the acceleration here.
In response to the data, WGEA says there are plenty of interventions available to employers, including offering part time or job share managerial roles to women and men, and pricing roles by market value instead of asking candidates about their current or past salaries. WGEA also advocates for setting targets for gender balance across occupations and roles.
“Our report shows how key employer interventions at critical times could reduce the gender pay gap and improve women’s ability to earn and save for retirement,” WGEA CEO Mary Wooldridge said on the findings.
“We’re asking employers to change the story and shape the future. Taking at least one of these actions this year will make your workplace fairer.”
The Ages and Wages report is based on 2024 from the Workplace Gender Equality Agency, collected on employee age in the annual Employer Census. The full report is available here.