Australia’s gender pay gap: What’s changed and what still needs to shift

In March 2025, the Workplace Gender Equality Agency (WGEA) published its latest data on Australia’s gender pay gap. On the surface, it looked like progress: the average full-time woman now earns 78 cents for every $1 earned by her male counterpart – the narrowest gap in history.

And yet, that still leaves a 21.7% difference in median total remuneration between what a man and woman receive. In dollar terms, that equates to a shortfall of $26,393 per year. So the message is clear: while change is finally visible, we ‘re still a long way from equality.

With that in mind, we take a look at what’s actually shifted in 2025, and what employers need to do next. 

A new era of transparency

The biggest shake-up came with WGEA’s mandatory public reporting laws, which for the first time required large employers (those with 100 or more staff) to publicly disclose their gender pay gap data.

When those numbers were published in March, they hit like a thunderclap.

• Nearly two-thirds of reporting employers had a gender pay gap of more than 5%.
• A quarter of companies had gaps over 20% (and some household names exceeded 30%).

Public sector organisations were also in the spotlight, including the ABC, Australia Post and DFAT – all of which recorded double-digit median pay gaps: 17.1%, 17.3% and 14.4% respectively. While each pointed to role composition and seniority mix as key drivers, the data laid bare just how far even progressive, high-profile employers still have to go.

We’re hopeful that this is a turning point. Employers can no longer explain away the issue with generic statements like “we pay men and women equally in the same roles”. 

The new reporting regime forces businesses to examine representation, progression, and pay at every level – from graduates to the C-suite.

Going beyond the average

WGEA’s current framework doesn’t just look at base pay. It also includes:

• Median and mean gaps (base and total remuneration)
• Gaps by manager vs non-manager
• Quartile breakdowns, i.e. are women represented at the top or clustered at the bottom?
• Voluntary CEO pay disclosure (coming soon as a potential mandate). 

This granularity is powerful. It makes visible the systemic patterns that previously slipped through the cracks. Things like the bonus disparity, lack of progression into revenue-driving roles or the “motherhood cliff” that derails women’s earnings after their first child.

Meanwhile, the pressure to respond is real. Since the data became public:

• Employees have begun using public pay gap data to inform job decisions
• Investors and procurement partners are scrutinising the figures
• Internal DEI teams have been asked for urgent action plans.

For employers, this isn’t a PR problem, it’s a governance issue. 

But it’s also a strategic opportunity.

What needs to shift now?

While WGEA’s public reporting highlights what the problems are, it’s up to each employer to decide how to respond. Based on the data – and what we’re seeing in workplaces – here’s where we believe the change needs to come from.

1. More women represented at the top

According to the Workplace Gender Equality Agency (WGEA), while women make up 51% of the workforce, they hold only:

• 19.4% of CEO positions
• 32.5% of key management roles
• 33% of board memberships
• 18% of board chair positions

This disparity isn’t merely a pipeline issue; it’s structural. Even in sectors with high female participation, women are underrepresented in top-tier positions. This lack of representation at the highest levels contributes significantly to the overall gender pay gap.

WGEA’s 2025 data also reveals women are overrepresented in lower pay quartiles and underrepresented in the highest pay quartile. This distribution underscores the systemic barriers women face in ascending to higher-paying roles.

To counter these, we believe organisations should be doing more than just setting diversity targets. They should be reviewing:

• Succession planning processes
• Leadership readiness programs
• Role design: especially around flexibility and part-time trackability.

Until more women occupy roles with significant financial accountability, the overall pay gap will persist.

2. Performance and promotion bias

It’s one thing to offer flexible work and generous parental leave. But do women get the same high-impact projects, ratings and promotion velocity as their male peers, especially when working part-time?

Often, the answer is no.

Performance assessments, bonus eligibility and sponsorship are frequently affected by gendered expectations: subtle patterns that add up to major pay inequity over time.

So employers need to interrogate:

• Promotion rates by gender
• Bonus pool distributions
• Exit interview data for systemic themes. 

And if something’s broken? Fix it publicly. Staff will respect honesty more than silence.

3. Many employers are still taking a reactive approach

The 2025 WGEA Report indicates that, while 68% of employers conducted a gender pay gap analysis, the depth and effectiveness of these analyses vary. 

Some organisations have taken proactive steps, such as setting clear targets for narrowing the gap, conducting annual audits, and linking executive remuneration to diversity, equity, and inclusion (DEI) outcomes.

However, others have adopted a reactive approach, focusing on defensive messaging or attributing gaps to outliers rather than addressing systemic issues. This approach often lacks transparency and doesn’t really instigate any meaningful change.

Notably, the public sector has shown some progress. A study found that the gender pay gap in the Australian public service was 13.5%, lower than the private sector’s 21.7%.  

This improvement was attributed to deliberate efforts in workforce gender balance and managerial representation. However, challenges remain, especially in supporting men taking carers leave and ensuring part-time workers are not overlooked for promotions.

So, while transparency may have increased, for many – if not most – organisations translating this into actionable strategies remains a challenge. 

Proactive measures are essential steps in addressing this. These could include, for instance:

• Setting clear targets
• Conducting thorough audits
• Linking DEI outcomes to executive remuneration,.

Public pressure is rising

Australia’s gender pay gap is no longer just a quiet statistic on a government website. It’s front-page news, LinkedIn chatter and water-cooler conversation. And in some sectors, such as media, tech, law and finance, the reputational risks are mounting.

As Women’s Agenda reported, the 2025 WGEA release revealed major disparities even within the public sector. Some government agencies had gaps exceeding 15%, despite strong public diversity policies.

While the overall national average is down, there is enormous variation by sector and organisation. That means every employer needs to now take ownership. There’s no longer safety in averages.

Where to from here?

The expectation in 2025 and beyond is not perfection, but progress and transparency.

That starts with:

• Owning your numbers
• Understanding your patterns
• Acting on the causes

The best companies are moving beyond compliance, turning their data into insight and insight into action. 

After all, if your gender pay gap isn’t shrinking your people, your investors and your future hires will increasingly want to know why.

Want more?

Whether you’re preparing your next WGEA submission or reviewing internal pay equity, get in touch with our team of HR experts. We can help you address your organisation’s pay gap with a plan that’s measurable, defensible and real.