Australia's Finance Sector Grapples with Enduring Gender Pay Gaps

• WGEA highlights gender pay disparity in Australian companies
• 79percent of employees continue to operate beyond the recommended pay gap range of -5percent to +5percent.
• Finance, insurance and construction sectors show a pronounced 22.2percent gap in average total remuneration favouring men
• Data records an average of 21.8percent gender pay gap in total remuneration

The Workplace Gender Equality Agency (WGEA) has published its most recent analysis of pay disparities in Australian companies. Although over half (56 percent) of the employees has made progress in narrowing wage gaps, 79 percent continue to operate beyond the recommended pay gap range of -5 percent to + 5percent.

With wage disparities widening in lucrative industries, Finance and Insurance sectors show a pronounced 22.2 percent gap in average total remuneration favouring men. The construction sector follows closely, also exhibiting substantial pay disparities.

For the first time, CEO, senior business leaders and casual manager earnings have been incorporated into the analysis. Without these additions, the total gender pay gap would have seen a 0.6 percentage points reduction year-over-year. According to WGEA data records an average of 21.8 percent gender pay gap in total remuneration. Women on average receive, just 78 cents for every dollar earned by men, translating the wage disparity to an annual income gap of $28.425.

“It’s encouraging to see that over 1,100 employers have met the target range for gender pay equity, but there’s still a long way to go,” WGEA CEO Mary Wooldridge (pictured) said. “Employers need to delve into their data to uncover the root causes of pay disparities and develop informed strategies to tackle them,” Wooldridge said.

Covering a significantly expanded dataset, the 2023-24 report analyses 7,800 employers and 1,700 corporate groups. It reveals that 75 percent of businesses still prioritize men in remuneration frameworks. These disparities are particularly evident in high-salaried industries. 

By integrating both average and median pay gaps, WGEA provides a more granular analysis of compensation inequalities. This dual approach enables a more precise identification of problem areas. It also drives more strategic interventions as corrective measures. Significance of analysing company-specific wage disparities is of prime importance.

A data-driven approach is critical as companies work toward achieving more equitable compensation structures. Underscoring the importance of internal audits and staff engagement, regular reviews, and employee consultations, should be implemented for a fairer and more transparent pay practices.