Australian women effectively work without pay for the rest of the year, according to a new report from the .
The Australian Council of Trade Unions (ACTU) report reveals women are “working for free” for 42 days this year due to the gender pay gap.
Although gender pay equality has still not been achieved in Australia, significant progress has been made recently, with the latest report indicating that the gap is at its lowest level ever, at 11.5 per hundred.
This is a big improvement on previous years, but there is still an area that is holding Australian women back.
To what extent do women earn less than men?
According to the new report, an Australian woman working full-time earns on average $231 less per week than a man, or 11.5 per cent.
But while the gap remains significant, it is a huge improvement over previous years.
Since 2022, the gender pay gap has narrowed by 1.3 percent each year, three times faster than the previous coalition government’s average of 0.4 percent.
If we maintain this pace, the gap could close completely within nine years. Slow previous closure rates meant women could wait another 35 years or so to achieve equal pay.
“More needs to be done to fully close the gender pay gap and no one can ignore the fact that women work 42 days more a year to earn the same pay as men,” said the ACTU president , Michele O’Neil.
“Government policies have a direct effect on the underpayment of female workers and the gender pay gap.”
Female-dominated sectors see their salaries increase
The report reveals that one of the main factors in narrowing the gap has been the increase in wages in such as elderly care.
Under a landmark decision by the Fair Work Commission in March this year, up to 28 percent.
Other factors include the government’s decision to support higher wages for awarded workers – 60 percent of whom are women – as well as strong growth in full-time employment for women through improved rights to flexible working and improved paid parental leave.
A 15 per cent pay rise nationally for early childhood education and care workers from December is expected to further reduce the gender pay gap.
The report found that sectors such as media and telecommunications, accommodation and food services, and administrative and support services showed an increase in the gender pay gap.
The gap widened by 9.1 percentage points in the arts and recreation industries, making it the largest increase. This is followed by public services, where the gap widened by 5.3 percent.
O’Neil said increased transparency about wages across industries helps bring about pay equity.
“With the improvement of current laws, we may have more opportunities to have better working conditions, and we could also go further in this area,” she said.
Some sectors are holding back progress
But must play a greater role in helping to reduce the gender pay gap.
“This should be a wake-up call for the private sector to take responsibility and put measures in place so that women are no longer disadvantaged,” O’Neil said.
“It is unacceptable that in 2024 we have a gap of 11.5 percent, and even if it narrows at a faster rate, it should not exist at all.”
A February 2024 report from the government’s Workplace Gender Equality Agency (WGEA) reveals that the gender pay gap in private companies has climbed to 21.7 percent.
Airlines Jetstar, Qantas and Virgin, as well as banks ING, Commonwealth and Westpac had a gender pay gap almost twice the national average.
Supermarket giants Woolworths and Coles had an almost neutral gender pay gap, at 5.7 per cent and 5.6 per cent respectively.
The removal of caps on public sector salaries has been a key factor in improving pay conditions.
In February 2025, the WGEA will publish the gender pay gap for private sector employers for the second time.
It will then become clear what progress, if any, major institutions have made in closing the gender pay gap.
Additional reporting from the Australian Associated Press
