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Closing the Gender Pay Gap in Australia: The Facts & the Fix

Posted at 02 Feb in Analytics, HR solutions Category, Payroll, Personal Development, Talent, Workplace by Carol Lin

The gender pay gap is a persistent and ongoing issue affecting many countries worldwide, including Australia. Despite efforts to address and eliminate the gap, it remains a significant challenge for women in the workforce. This article aims to provide an in-depth examination of the gender pay gap in Australia in 2022 and its impact on women, while exploring the reasons behind the gap and potential solutions to address it.

What is the Gender Pay Gap in Australia in 2022?

The gender pay gap refers to the disparity between the average earnings of men and women in the workplace. In Australia, the gender pay gap is calculated based on average weekly earnings. According to the Australian Bureau of Statistics (ABS), the gender pay gap in Australia in 2022 was 15.3%. This means that, on average, women earned 15.3% less than men in the same period.

Why is the Gender Pay Gap an Issue?

The gender pay gap has a significant impact on women and society as a whole. When women earn less than men for performing the same work, it creates a financial disparity that can have long-term consequences. This includes reduced retirement savings, limited opportunities for career advancement, and an increased risk of poverty in old age. Additionally, the gender pay gap perpetuates gender inequality, as it reinforces the notion that women’s work is worth less than men’s work.

Why is There a Gender Pay Gap in Australia?

There are a number of factors contributing to the gender pay gap in Australia. Some industries and occupations have a high gender pay gap, with women in these industries earning less than men for performing the same work. This includes industries such as finance and insurance, information, media and telecommunications, and professional, scientific, and technical services.

Part-time work and time out of the workforce also play a role in the gender pay gap. Women are more likely to work part-time and take time out of the workforce to care for children or other family members. This can result in a reduction in their overall earning potential and make it harder for them to reach senior positions in their career.

Is There a Gender Gap in Pay?

The issue of pay equity is also a significant contributor to the gender pay gap in Australia. Women are often paid less than men for performing the same work, particularly in female-dominated industries. This has a significant impact on average full-time earnings for women, as female-dominated industries often pay lower salaries than male-dominated industries.

In addition to pay equity, the base salary discrepancy between women and men is a significant factor in the gender pay gap. Women are often paid less than men for performing the same work, even when they have the same qualifications and experience. This contributes to the overall financial disparity between men and women in the workforce.

Potential Solutions for Gender Pay Gap:

Addressing the gender pay gap in Australia will require a multi-faceted approach, involving both legislative and cultural changes. The Gender Equality Agency (WGEA) is a key player in this regard, working to promote pay equity and gender equality in the workplace. In addition, EmployeeConnect, as a leading HRIS and Payroll software company, can also play a role by providing tools and resources to help employers identify and address pay disparities.
One potential solution is to implement legislation requiring companies to conduct regular pay equity audits. These audits would examine base salary, bonuses, and other compensation-related factors to ensure that women are being paid fairly. This could be supported by initiatives such as the WGEA’s Pay Equity Toolkit, which provides guidance and resources for employers to address pay disparities.
Another solution is to promote cultural change within organizations, to reduce gender-based biases and discrimination in the workplace. This could involve training programs and workshops aimed at raising awareness and promoting cultural change. EmployeeConnect’s HR software provides features such as employee surveys, performance evaluations, and diversity and inclusion training, which can be used to support these efforts.

The gender pay gap in Australia in 2023 remains a persistent and significant challenge for women in the workforce. While efforts are being made to address and eliminate the gap, there is still a long way to go. This article has explored the reasons behind the gender pay gap in Australia, including industries and occupations with a high gender pay gap, part-time work and time out of the workforce, and pay equity and base salary discrepancy.

Efforts must continue to be made to address and eliminate the gender pay gap, including addressing pay equity, promoting flexible working arrangements, and encouraging women to enter and remain in male-dominated industries. Only then can we move towards a more equitable and just society where women are valued and paid the same as men for performing the same work.

In EmployeeConnect, we help companies automate payroll processes and ensure that all employees are paid accurately and fairly. With these solutions, companies can easily track and compare their employees’ salaries, identify any pay disparities, and make adjustments to promote pay equity. If you are wondering how it can benefit your organization, book a free demo, and we will walk you through it.