This year, equal pay day falls on August 19.
That’s 50 days extra work a woman needs to do if she wants to earn the equivalent of a man’s average wage at the end of the financial year (on June 30).
The gender pay gap is not the same as equal pay. Equal pay means paying women and men equally for the same or similar value work. In Australia, unions won the right to equal pay for equal-value work back in the 1970s.
The gender pay gap is what we use to measure the value we put on women workers.
For example, the current gender pay gap is 22 per cent – that means for every dollar a man earns, women earn just 78 cents. It’s important to close this gap to achieve a fair and inclusive society.
Why is there a gender pay gap?
Women workers have been historically undervalued, but participation in the workforce has been steadily growing and now women make up almost half (compared to just 30 per cent in the 1960s).
There are many myths surrounding why women are paid less overall than men. These include statements like: “women have the same opportunities as men but choose different (lower-paid) roles”, or “women choose to spend time at home with babies”, and so on.
But the real causes are varied and wide-ranging.
- Women face discrimination in the hiring process,
- female-dominated industries and sectors attract lower pay (compare early education sector educators’ wages to construction workers’ earnings, for example),
- many jobs lack flexibility and are not family-friendly,
- there are high rates of part-timers among women workers,
- many women have caring responsibilities that interfere with work
“It’s so great to have a female-led industry being recognised as having real qualifications and actually being more than just ‘baby-sitters’.”
“We are educators who help develop children in their first five years, which is just so crucial for them.
“So, it’s actually nice to finally be recognised for what we’re trying to do here.”
– Paige Taylor, early childhood educator and proud UWU member.
How is the pay gap measured?
It can be confusing to understand the statistics around the gender pay gap, because there’s more than one way to measure it.
The government’s Workplace Gender Equality Agency (WGEA) has been set up to consider the position of women in the workforce and the wider community in more detail, and so offers the most accurate picture.
In 2024, WGEA reported the current pay gap at 21.7 per cent. According to WGEA figures, the average women’s wage is about 80 per cent of the average male wage.
The Australian Bureau of Statistics (ABS) 2024 figures, however, measure it differently putting the gap at just 12 per cent.
ABS figures compare only full-time wages of men and women. They do not take into account part-time, casual, and fixed-term contract workers – or company bonuses.
We know women are overrepresented in casual and part-time work because it offers the flexibility many women need to balance care commitments and unpaid labour outside work hours.
Unfortunately, casual and part-time work is less secure, lower paid and less likely to offer career progression.
Company bonuses are mostly given to executives. In 2024, only 9 per cent of CEOs are women. Career progression remains a barrier for women’s earnings.
Who are the worst offenders?
Thanks to the Labor government, the worst offenders when it comes to gender equality in the workplace are named and shamed.
WGEA reported on the public sector for the first time in 2023. As of 2024, every company in the private sector with more than 100 workers must report how they are tracking against their gender equality policy.
The banks come out on top as the worst performers on equal pay. NAB performs the best out of the big four, but is still three times worse than the recommended range.
Even with laws requiring companies to be transparent about what they pay women vs men, only 55 per cent of companies undertook a payroll analysis against their equal pay policies.
Only 30 per cent of companies met the recommended target range of plus or minus 5 per cent.
The public sector performed significantly better with a gap of 13.5 per cent. As this sector is unionised, we know that through enterprise bargaining we can achieve workplace policy changes that promote equal pay.
Why the pay gap means women are retiring in poverty
Today, older women are retiring in poverty and the risk of homelessness among women over 55 is growing faster than any other group.
Women in low-paid and insecure work remain a significant driver for the gender pay gap. The less you earn over your career, the less super you accumulate over your working life.
Unions created the superannuation system to ensure a dignified retirement for workers. Not-for-profit industry super funds (that benefit members instead of shareholders) play a central role in the super industry.
But for women, the super gap is currently 30 per cent. To change this, we need to promote gender equality across the workforce. One important way to do this is by supporting UWU’s campaign to raise the rate of employer super contributions – and ensuring super is paid on every dollar we earn.
Add your voice – sign our petition now.
How unions have won change for women workers
We’ve ensured the super guarantee rate increased to 12 per cent against Liberal lobbying to freeze the guarantee and raid super early for housing and debt.
We’ve won 26 weeks government-funded Paid Parental Leave and flexible work policies to encourage more men to share career breaks to raise a family.
We’ve successfully lobbied for Labor to introduce super payments on government-funded paid parental leave starting from January 2025.
And from 2026, employers will be required to pay super at the same time as salary and wages (instead of only being required to pay every 3 months). This long-fought change will significantly reduce super theft.
We’ve fought for anti-discrimination and pay transparency laws that make it illegal for employers to treat employees unfairly based on gender.
It’s half-time in the battle to close the gender pay gap. If you believe in gender equality, now is the time for every player on the field to get behind this campaign. If you’re not already a member of your union, join now.
Here’s what we’re campaigning for now:
- Raise the superannuation guarantee to 15 per cent
The current rate is 11.5 per cent (increasing to 12 per cent in 2025). - Super on every dollar earned
Currently, super is paid only on your base salary and does not match your income when you account for penalty rates, overtime or loading on shift work. - Super for every worker
No matter where you work! Some casual employees and domestic workers are also not eligible for super payments, such as gig-economy workers. This is a loophole that needs closing. - Employer-funded paid parental leave (PPL) to include super
Labor is introducing super payments on government-funded paid parental leave starting from January 2025. Employers should do the same. - Progressive taxation on super
People on lower incomes should be taxed less on super contributions - Allowing First Nations workers to access their super at a younger age due to a shorter life expectancy and a need for earlier retirement.
- Campaign for 25 per cent wage increase for ECEC workers
It’s time to recognise the essential work done by our Early Childhood Educators. - Fair Work Commission award review of the undervaluation of women workers.
Unions have fought long and hard to shine a light on the undervaluation of feminised industries. The process is finally underway, and we will be keeping a close eye and informing the FWC.
If you want to know more about your super and what to do about super theft, download our Expert Guide on Superannuation.
