Thousands of Australian companies are exposing gender pay gaps

Gender pay gaps at some of Australia’s largest employers have been published for the first time in a bid to increase transparency and equality in the workplace.

Employers are being warned that ignoring the gender pay gap will put their organizations at risk as pay data from thousands of companies is made public for the first time.

The data, published by the Workplace Gender Equality Agency (WGEA), is broken down by sector into basic salaries and total rewards, including pension, overtime and bonuses.

It shows that 90 percent or more employers in the mining, electricity, water and waste services, financial and insurance sectors have a gender pay gap that favors men.

More than 80 percent of those employers have a gap of more than 9.1 percent. The national average is 21.7 percent, which equates to women earning $26,393 less annually than men.

There is also a link between more women in management positions and lower pay gaps, while employers with a gender balance in management positions were 50 percent more likely to have a neutral pay gap.

Qantas, Jetstar and Virgin reported average pay gaps of 37 percent, 43.7 percent and 41.7 percent. (AP PHOTO)

Australian airlines, including Qantas, Jetstar and Virgin, reported average pay gaps of 37 percent, 43.7 percent and 41.7 percent respectively.

Qantas Group Chief People Officer Catherine Walsh said the data did not mean women were paid less than men to do the same work.

There had previously been significant underrepresentation of women in higher-paid roles such as pilots and engineers, jobs the airline was working to encourage more women into.

“The years of training required for these roles means that improving the gender balance of these working groups will take time,” Ms Walsh said.

Banks also reported significant pay gaps in favor of men, including 18.8 percent at NAB, 28.5 percent at Westpac and 29.9 percent at the Commonwealth Bank.

A CBA spokesperson said women represent 54 percent of the bank’s local workforce and 44 percent of leadership positions.

But 71 percent of customer service and operations positions, which typically command lower wages, were filled by women.

“CBA’s average pay gap reflects many factors that influence the gender pay gap more broadly, including the types of roles women hold, the seniority of those roles and the composition of the workforce,” the spokesperson said.

WGEA chief executive Mary Wooldridge said the data release, made possible by a law reform passed in 2023, was an important step forward in understanding gender equality in Australian workplaces.

“Transparency and accountability are actually beneficial for employees, for the community and for the nation as a whole because gender equality is beneficial at all these levels,” she said.

“(Reporting on pay gaps) is something that has happened in other countries with very positive results, and it is a useful step towards equality.”

While there is no legal obligation for organizations to reduce pay gaps within their organisation, Ms Wooldridge said employers who fail to take action on the data would be disadvantaged.

“Employers can choose how they respond regarding publishing this information, we are not requiring them to do anything,” she said.

“But I think they fail to take action on gender equality at their peril.

“Employers need to understand that this information can actually shape the decisions of their future workforce.”