Gender pay gap Australia

Newly released data reveals that the gender pay gap at prominent Australian corporations, including Commonwealth Bank (CBA.AX), national carrier Qantas (QAN.AX), and oil and gas explorer Woodside (WDS.AX), surpasses the national average of 19%. The government, in compliance with legislation enacted in March 2023, has unveiled the gender pay gaps at firms employing over 100 individuals. Despite ongoing discussions from governments and corporations about narrowing the gender pay gap, the report underscores the substantial disparity in earnings between men and women at major Australian employers.

According to the Workplace Gender Equality Agency (WGEA), the median total remuneration gap for 2022/23 favored men by 19%, with the median base pay difference at 14.5% and the average total pay gap at 21.7%. Shockingly, only one-third of companies achieved a median gender pay gap within the target range of -5% to +5%.

Minister for Women Katy Gallagher expressed concern, stating, “There is a substantial problem in this country when you’ve got essentially two-thirds of businesses with a gender pay gap in favor of men.” She emphasized that the goal is not to shame or blame but to drive necessary changes within organizations to ensure women receive fair opportunities and gradually close the gender pay gap.

Australia’s leading banks and energy firms, such as Commonwealth Bank and AGL, demonstrated significant disparities, with gender pay gaps reaching 29.9% and 33.2%, respectively. International investment banks like UBS and Morgan Stanley faced over 40% pay gaps due to a higher representation of men in top positions.

On a positive note, supermarket operator Woolworths, one of Australia’s largest employers, showcased a modest gender pay gap of 5.7%. However, the Australian operations of Thomson Reuters reported a substantial 28.5% gap.

While Commonwealth Bank and AGL expressed commitment to regular reviews of gender pay data and efforts to address the gap, other companies, such as UBS and Woodside, highlighted initiatives to promote gender pay equity. Morgan Stanley and Thomson Reuters did not immediately respond to requests for comments on the report.

The report also highlighted significant variations across industries, with the construction sector having a midpoint employer gender pay gap of 31.8%, while hotels and restaurants demonstrated a considerably lower gap of 1.9%.

Several countries, including Britain and the European Union, have mandated companies to report gender pay differences, resulting in reductions over the years. The Australian government plans to extend such reporting to public companies and agencies next year.