Australia’s Gender Pay Gap Narrows, But Challenges Remain

Australia is seeing incremental progress in closing the gender pay gap, but significant disparities persist, particularly across industries and within specific companies. Recent data released by the Workplace Gender Equality Agency (WGEA) reveals a national gender pay gap of 11.2 percent, a decrease of 0.9 percentage points from the previous year. However, women still earn, on average, 88.8 cents for every dollar earned by men.

Understanding the Gender Pay Gap

It’s crucial to differentiate between the gender pay gap and equal pay for equal work. Equal pay legislation, in place for over 50 years, mandates that men and women receive the same remuneration for performing the same job or comparable work. The gender pay gap, however, represents the broader difference in average earnings between all men and women in the workforce, encompassing factors beyond direct pay discrimination. As WGEA CEO Mary Wooldridge explains, the gap reflects inequalities in industry representation, part-time work arrangements, career interruptions for caring responsibilities, and the prevalence of bonuses and commissions in male-dominated fields.¹

Key Findings from the WGEA Data

The WGEA data, compiled from over 10,500 employers covering 5.9 million workers, provides unprecedented transparency into pay disparities across the Australian economy.² Key findings include:

• More than half (52.3%) of companies reduced their median total gender pay gap in the 2024-25 year.
• The finance and insurance industries continue to exhibit the largest and most consistent gender pay gaps.
• Significant pay gaps were also identified in public administration and safety, information media and telecoms, real estate, and the trades.
• The construction industry has the highest gender pay gap, with women earning 23.8 percent less than men.

Industry Disparities

The gender pay gap varies significantly by industry. Construction and mining, traditionally male-dominated sectors, show the largest disparities. In construction, women comprise only 10 percent of the top quartile of earners, while representing 37 percent of the lowest pay quartile.² Conversely, some women are finding opportunities for higher earnings by transitioning into traditionally male-dominated trades, like construction, with some reporting a doubling of their income.²

Company-Specific Gaps

The WGEA data also highlights significant pay gaps within individual companies. Sydney Ultrasound for Women recorded the largest gap at 79.2 percent, meaning women earn 20.8 cents for every dollar earned by men. The company attributes this to a workforce structure with a slight number of men in senior roles.² Other healthcare groups and companies in the cosmetic services industry also feature prominently among those with the largest gaps.

Superannuation Funds and Major Banks

Australia’s largest superannuation funds and major banks also face scrutiny regarding their gender pay gaps. While most are making efforts to close the gap, they generally remain above the national average.²

Compliance and Future Outlook

Employers with 100 or more staff are legally required to report their pay gaps to the WGEA annually. 244 employers, including Adidas, 2XU, and Seafolly, failed to submit data as required.²

Mary Wooldridge, the outgoing CEO of WGEA, emphasizes the importance of addressing the “deep roots” of gender segregation in the workforce, starting with education and societal norms.² She notes that increasing female representation in male-dominated industries, like construction, is crucial, as is ensuring that industries reliant on female labor can meet future workforce demands.