Australian Women Working Without Pay: A Deep Dive into the Gender Pay Gap
Australian women are effectively working without pay for the rest of the year, according to a new report from the Australian Council of Trade Unions (ACTU). This report sheds light on the ongoing gender pay gap issue in Australia, revealing that women are “working for free” for 42 days this year due to the persistent wage disparity.
Progress and Challenges
The latest report indicates that the gender pay gap in Australia is at its lowest ever at 11.5 per cent. While this marks a significant improvement from previous years, there is still work to be done to achieve gender pay equality. The gap remains a pressing issue, with one sector in particular hindering the progress of Australian women.
How much less are women earning than men?
According to the new report, an Australian woman working full-time earns on average $231 less per week than a man, representing an 11.5 per cent pay gap. However, the gap has been shrinking by 1.3 per cent each year since 2022, a rate three times faster than the previous Coalition government’s average. This accelerated progress suggests that the gender pay gap could potentially close completely within nine years if the current trend continues.
- If the current pace continues, the gender pay gap could close within nine years.
- Previous slow closure rates meant women could wait another estimated 35 years for pay equality.
ACTU president Michele O’Neil emphasized the need for further action to eliminate the gender pay gap, pointing out that women are effectively working an additional 42 days per year to earn the same as men. She highlighted the direct impact of government policies on the underpayment of women workers and the persistence of the gender pay gap.
Female-Dominated Industries Driving Progress
The report identified wage increases in female-dominated industries such as aged care as a key driver in narrowing the gender pay gap. A landmark Fair Work Commission decision earlier this year led to pay increases of up to 28 per cent for workers in these sectors. Additionally, government support for higher wages for award workers, who are predominantly women, along with improved rights to flexible work and enhanced paid parental leave, contributed to the positive trend.
- Wage increases in aged care contributed to narrowing the gender pay gap.
- Anticipated 15 per cent pay increase for early childhood education and care workers expected to further shrink the gap.
However, certain industries saw a widening of the gender pay gap, including media and telecommunications, accommodation and food services, and administrative and support services. O’Neil noted that increased transparency about wages in various sectors was crucial in advancing pay equity.
Sectors Stalling Progress
Despite the overall progress in closing the gender pay gap, there are sectors that are lagging behind and need to take more significant steps towards achieving pay equality. O’Neil called on the private sector to acknowledge their responsibility in addressing the issue and implementing measures to ensure that women are no longer disadvantaged.
- Private sector companies need to prioritize closing the gender pay gap.
- Government policies have a direct impact on underpayment of women workers.
A report from the Workplace Gender Equality Agency (WGEA) revealed that the gender pay gap for private companies skyrocketed to 21.7 per cent in February 2024. Major companies like Jetstar, Qantas, Virgin, ING, Commonwealth, and Westpac had a gender pay gap nearly double the national average. In contrast, supermarket giants Woolworths and Coles had a much lower gender pay gap, highlighting disparities across different industries.
As WGEA prepares to publish the gender pay gaps for private sector employers in February 2025, the progress made by major institutions in closing the gender pay gap will become clearer. This ongoing monitoring and reporting will be crucial in holding companies accountable and driving further improvements in pay equity.
Conclusion
The gender pay gap remains a pressing issue in Australia, with women continuing to face disparities in wages compared to their male counterparts. While there has been significant progress in closing the gap, particularly in female-dominated industries, there is still work to be done to achieve true pay equality. It is essential for both the public and private sectors to prioritize closing the gender pay gap and implementing policies that promote fair and equal pay for all workers.
FAQs
What is the current gender pay gap in Australia?
The gender pay gap in Australia is currently at its lowest ever at 11.5 per cent, with women earning on average $231 less per week than men working full-time.
Which industries have seen improvements in narrowing the gender pay gap?
Female-dominated industries such as aged care have seen significant improvements in narrowing the gender pay gap, with wage increases and supportive government policies playing a key role in driving progress.
How can the private sector contribute to closing the gender pay gap?
The private sector can contribute to closing the gender pay gap by acknowledging their responsibility in addressing the issue, implementing measures to ensure pay equality, and promoting transparency in wage practices.