Australia’s latest gender pay gap data has been released by the Workplace Gender Equality Agency (WGEA), providing a detailed look at how Australian workplaces are progressing on pay equity.
The 2024–25 Employer Gender Pay Gaps Report examines data from more than 10,500 employers with 100 or more employees, representing almost 5.9 million workers across the country.
For employers in Queensland and across Australia, the report offers more than just statistics, it provides insight into the drivers of gender pay gaps and practical guidance on how businesses can respond.
Has there been progress on Australia’s gender pay gap?
The latest data shows some encouraging signs. The midpoint of the average total remuneration gender pay gap across employers is now 11.2%, down from 12.1% the previous year.
In practical terms, this means that at the midpoint, women are earning about 11% less than men within the same organisation on average.
More than half of employers (54.8%) reduced their gender pay gap over the past year, indicating that many workplaces are taking action after the first public release of employer pay gap data in 2024.
At a national level, however, the gap remains substantial. Across the private sector, women earn around 79 cents for every dollar earned by men, equating to an average difference of more than $28,000 per year.
The key takeaway for businesses is progress is occurring, but there is still significant work to do.
What does gender pay gap data actually measure?
One of the most common misconceptions is that the gender pay gap measures equal pay for equal work – it does not.
Instead, the gender pay gap reflects the difference between the average earnings of men and women across an organisation. This means the gap is influenced by factors such as:
- Representation of men and women at different levels of seniority
- Workforce composition across occupations
- Access to bonuses and discretionary pay
- Career progression opportunities
In many organisations, the gap arises because men are over-represented in the highest-paid roles, while women are more likely to be in lower-paid positions or part-time work.
For employers, this means closing the gap often requires structural workforce changes rather than simply adjusting salaries.
Are there differences in gender equality across industries?
Employers in male-dominated or high-paying industries tend to have the largest gender pay gaps. The sectors include:
- Financial and insurance services
- Construction
- Mining
- Electricity, gas, water and waste services
These industries have a high proportion of employers with gender pay gaps above the national midpoint.
This is largely due to workforce composition. When leadership and technical roles are dominated by one gender, the overall pay gap will typically reflect that imbalance.
For employers in sectors with persistent workforce segregation, recruitment, retention and promotion strategies become particularly important.
Major contributors to the gender pay gap in Australia
Another key insight from the report is the role of discretionary payments – such as bonuses, commissions and overtime.
Half of employers report a gender pay gap in discretionary pay of nearly 30%, meaning men are significantly more likely to receive higher additional payments beyond base salary.
For employers reviewing their own data, this highlights the importance of examining bonus structures, performance reward systems and commission-based pay models.
Even when base salaries are equitable, differences in additional payments can create large overall remuneration gaps.
What can employers do to address gender pay gaps?
WGEA identifies three practical actions that can help employers accelerate progress on gender pay equity.
1. Conduct a deeper pay gap analysis
Employers should go beyond headline figures and examine where gaps are occurring within their organisation. For example:
- by job level
- by business unit
- by employment type (full-time, part-time, casual)
Understanding the drivers of the gap is the first step to addressing it.
2. Implement evidence-based actions
Actions should be targeted to the causes identified in the analysis. This might include:
- reviewing promotion and recruitment practices
- improving transparency in pay and bonus allocation
- supporting career progression for under-represented groups
3. Set measurable targets
Setting clear gender equality targets helps organisations track progress and maintain accountability over time.
Increasingly, boards and executive teams are also being asked to oversee these targets as part of broader governance and ESG frameworks.
Why does the gender pay gap matter?
Gender pay gap reporting is no longer just a compliance exercise. With WGEA now publishing employer-level pay gap data publicly, organisations face growing scrutiny from:
- Employees and job applicants
- Investors and stakeholders
- The broader community
At the same time, organisations that actively address gender equality often see benefits including improved talent attraction, stronger employee engagement and better organisational performance.
Closing the gender pay gap is ultimately about improving how workplaces recruit, develop and retain talent.
The latest WGEA data suggests that change is happening, but gradually. Many organisations are only now beginning to analyse their data in detail and implement targeted strategies.
For employers, the most important step is to treat gender pay gap reporting not as a compliance requirement, but as a workforce planning tool that can help build stronger, more sustainable organisations.
