The national gender pay gap has dropped to a record low of 13.3 per cent, according to new Workplace Gender Equality Agency (WGEA) figures released today.
While any drop is good news, the fact the gap exists at all is still a significant issue for Australian women that continues to threaten economic security.
Women earn 87 cents for every $1 earned by a man, accounting for an average $253.50 less than a man’s average weekly ordinary full time earnings of $1907.10. The average full time working woman’s weekly earnings was at $1653.60 in November 2022, according to the Australian Bureau of Statistics’ data.
That $253.50 makes a significant difference when you consider current cost of living pressures on Australians, with WGEA highlighting the disproportionate consequences on women of the cost of groceries, energy, fuel, housing and other expense. Over the year, that weekly difference amounts to $13,182.
One in three Australian are experiencing ‘high’ levels of anxiety, according to figures quoted by WGEA today, and found in the latest Australian Wellbeing Survey by National Australia Bank. Women report higher levels of financial stress than men, and the most common cause of stress for more than one in two respondents is the cost of living.
WGEA director Mary Wooldridge also highlighted how the gender gap refers to full time worker salary, and therefore only shares a limited picture of the full situation.
She also noted that it doesn’t include bonuses, overtime payments or superannuation. The total remuneration gender pay gap, as calculated by WGEA and including these additional payments, consistently hovers around 5 per cent higher than the national gender pay gap that is applied to base salaries alone.
The pay gap also doesn’t cover part time or casual workers. As Wooldridge notes, many of these workers are lower paid.
“The gender pay gap is a handbrake on women’s ability to make ends meet. With inflation at 7.8 per cent, and rising, everyday essentials are becoming increasingly unaffordable,” she said.
Wooldridge highlighted how the lost income could have gone towards meeting bills, rent, mortgage repayments or additional contributions to superannuation funds for retirement.
“Gender pay gaps are a reflection of the way we value women’s and men’s contributions in the workforce,” she said.
Employers must make gender equality a priority, Wooldridge said. Or they’ll fail to attract and retain female talent, and they will miss the benefits of increased productivity, innovation, and profitability that come from embracing workplace diversity.
“As a business leader, if you are aware that your organisation has a gender pay gap and you take no action to close it, you are effectively sending a message to women that the work they do is of less value than that of men.
“Employers and business leaders need to step up and take action to ensure the work of all their employees is valued and rewarded equitably.”
On seeing the stats today, Dr Janin Bredehoeft, CEO of Science in Australia Gender Equity (SAGE), said the drop is no time for complacency.
She particularly highlighted Australia’s gender-segregated workforce as a contributor to the gender pay gap – with ABS data still showing massive differences in pay for different industries.
“We should also enable mobility between sectors and occupations, for example by creating mid-career entry points and focusing on career development and training for employees,” she said.
“The time is now for organisations to reassess their performance in gender diversity and inclusion. Set clear targets for gender equity that are linked to key performance indicators for managers and leaders.”
The stats to know:
- Australia’s national gender pay gap is now at 13.3 per cent
- Women make 87 cents for every $1 men earn
- Women are earning $253.50 less than men every single week
- The national gender pay gap refers to base full time weekly earnings.