Key Insights from WGEA’s Latest Employer Gender Pay Gap Report (2023–24)

Overview of the Report and Its Purpose

The Workplace Gender Equality Agency (WGEA) recently released Employer Gender Pay Gaps for 2023–24, offering an unprecedented look at gender pay gaps across Australia’s workplaces. This report draws on data from about 7,800 employers (1,700 corporate groups) as required under the Workplace Gender Equality Act 2012 for organisations with over 100 employees. By publishing employer-level gender pay gap data, WGEA aims to increase transparency and encourage organisations to reflect on their progress, identify drivers of their pay gaps, and communicate plans to address them. This level of transparency (now in its second year) is intended to drive evidence-based change toward gender pay equality.

National Level Trends in the Gender Pay Gap

At a national level, the data confirms that a significant gender pay gap persists. On average, Australian women earn 78 cents for every $1 earned by men, which equates to women taking home $28,425 less per year than their male counterparts. WGEA’s latest figures show an average total remuneration gender pay gap of 21.8% (in favor of men). Notably, extra payments beyond base salary (such as superannuation and bonuses) disproportionately go to men – women receive about $11,200 (circa 5%) less in these additional pay benefits each year.

Despite this, there are some encouraging signs of progress. The median gender pay gap edged down to about 18.6% in 2023–24, from 19% the previous year. In fact, 56% of employers reduced their pay gap over the last 12 months, reflecting gradual improvement. However, this still means that almost half saw their gaps stagnate or worsen. Overall, nearly 72.2% of reporting employers pay men more, on average, than women. Only about 21% of employers have achieved a relatively small pay gap within WGEA’s target range of + or - 5%.

Industries with the Lowest and Highest Gender Pay Gaps

The extent of the gender pay gap varies widely across industries. Some sectors are leading the way toward pay parity, while others lag behind. The below shows Industry average and median total remuneration mid point pay gaps.

Industries with the lowest gender pay gaps:
🟣 Public Administration and Safety has the smallest gender pay gap, with a median gap of just 0.7%.
🟣 Healthcare and Social Assistance and Accommodation and Food Services report a median pay gap of around 1.1%.
🟣 Arts and Recreation Services also show a median gap of 2.8%

Industries with the highest gender pay gaps:
🟣 Construction has the largest typical pay gap at a median of 26.3%.
🟣 Financial and Insurance Services report median pay gaps in the low 22.2%.
🟣 Rental, Hiring and Real Estate show a median of 16.2%. However, this increases to 21.2% on the average view.

Introducing...Employer Pay Quartiles

For the first time ever, WGEA has published pay quartiles for all organisations, setting a new benchmark for transparency in Australia. This newly available data offers valuable insights at a glance and has the potential to drive meaningful progress toward greater pay transparency. Organisations may find this a pivotal starting point for fostering more openness in their pay structures.

At a national level, the pay quartile data revealed a stark disparity: women are 1.5 times more likely to be employed in the lowest pay quartiles, while men are 1.9 times more likely to occupy the highest. This underscores the ongoing challenge of achieving greater representation of women in senior and high-paying roles, highlighting the need for continued progress in workplace equity.

What are the Key Learnings for Organisations?

To address gender pay gaps, organisations first need to understand their data, and be targeted on what they are solving for – given the complexity of the gender pay gap can be driven by more than pay packets.

🟣 Conduct regular pay gap analyses to understand the specific drivers of you pay gaps. It will be different across organisations - but it's key to addressing the problem, as you'll understand what your organisation is solving for. Did you know you can use equidi lite for free to automate this?

🟣 Conduct an adjusted gender pay gap analysis to understand how specific pay factors may affect your pay gap. Calculating an adjusted pay gap involves a statistical regression analysis – which allows us to control for various factors that influence pay (such as age, location, performance, pay grade, level and tenure) and isolates the effect of gender on pay. Reach out to us today if you'd like to learn more about our adjusted pay gap model.

🟣 Before making pay-related decisions, use predictive analytics to pressure test decisions. This could be at at key milestones in the employee lifecycle, such as salary review, point of hire, or during promotion processes.

🟣 Review pay policies and practices to ensure fairness in salaries, bonuses, promotions, and broader opportunities. When done well, this benefits the entire organisation, not just women.

🟣 Track your progress transparently. Share the wins and opportunities for your organisation. It will help build trust, drive accountability and accelerate change.

🟣 Looking ahead to next year, take the opportunity to submit an Employer Statement. Unadjusted pay gaps require explanation – and if you don’t do this, stakeholders may draw their conclusions from your data. Context is key, and your organisation should be proactive in the narrative.

How equidi Can Help?

WGEA’s latest data release underscores that while progress is being made, significant gender pay disparities persist. With reporting now more transparent than ever, organisations must proactively address their gaps.

equidi is here to help businesses identify, analyse and address their pay gaps. Why not try equidi lite for free and see the power of our platform for yourself. We inspire organisations with smart tools to create and sustain fair pay.

All visuals in this article came from the WGEA Employer Gender Pay Gap Report 2023-24.