Men and women do not earn the same. ABS data reveals that women are paid 11.5% less. Societal gender stereotypes, education and inadequate family and childcare services all contribute to the gap we still see today.
More than half (58%) of Australians believe a gender pay gap exists in Australia and 46% say that they care about it. Below we will explore the current state, what's working well and what needs fixing.
In this research report, launched in partnership with UN Women Australia, our data shows that the main hurdles to women's earning capacity have been having a baby (23%), choosing a flexible job that allows them to take care of family (20%), and the industry or career that they are in (17%).
Unpaid care work has been a consistent contributor to the gender pay gap in Australia and most Western countries for decades. ABS data from 2006 published by WGEA shows that unpaid care takes up 64% of women's average weekly work time. This is compared to 36% for men.
Almost 20 years later, unpaid care work still takes up the majority of a woman's time. Data from Finder's Consumer Sentiment Tracker reveals that women spend 16 hours on unpaid care work compared to 12 hours for men.
Interestingly, millennial and gen X women spend considerably more time on unpaid work – 20 hours and 18 hours respectively – however, no significant increase is recorded in men's number of unpaid work hours. This clearly illustrates that the brunt of childrearing still falls to women.
"The unequal distribution of unpaid care and domestic work significantly impacts women's earning potential and economic participation, often leading to career interruptions, a higher likelihood of part-time employment and persistent income gaps. This imbalance perpetuates inequality."
Lowering the number of hours women spend on unpaid care would likely help to close the pay gap. Countries like Denmark, Canada and Sweden where women spend less time on unpaid care work have higher female workforce participation rates according to OECD data also published by WGEA.
Reducing unpaid work hours for women doesn't necessarily mean men have to pick up the extra slack. The same countries with lower levels of unpaid work generally have more accessible childcare and family services.
"We must advocate for a fairer division of care responsibilities, which means recognising, reducing, and redistributing these tasks equitably across genders. The care economy must also be prioritised and funded to drive meaningful change."
Childcare is one of the largest expenses for working parents. Aside from the cognitive and social benefits of childcare for young children, it also allows parents to return to the workforce and progress their careers.
The Australian government's Child Care Subsidy (CCS) while well-intentioned, has failed to provide the level of accessibility to childcare that is seen in other countries.
This is because the CCS disincentivises parents to work after their household income exceeds a certain level. For many high and middle-income earning households, the parent who earns the least is faced with working 1 or even 2 days per week for free (their pay goes straight back into childcare fees) or saving on those fees and looking after their children themselves. Of course, the former means finding a part-time role with less chance of a promotion or raise and lower job security.
"We're currently expecting our second child and taking into account the childcare subsidy rates and high personal income tax we pay in Australia, both my husband and I are financially incentivised to drop to a four day working week. A common discussion amongst my friends is whether they or their partners should work extra days for free, given the reduction in subsidies as you earn more, to keep progressing their skills and earn more super. Of course, it's not just a financial decision and many parents choose to spend more time with their young children, but with super high living costs in major cities like Sydney and Melbourne, it would be great if working parents weren't penalised."
Having a baby, and the childrearing responsibilities that follow, continue to be the most common challenges to women's earning capacities.
More than 1 in 3 women (36%) have had to choose a flexible role over money or career progression because they were raising children. That's equivalent to 3.8 million women sacrificing their career to raise children. Meanwhile, 28% of men have done the same.
Job mobility data from the ABS corroborates this – a higher percentage of females (13%) reported leaving a job for family reasons than males (4.6%).
Improving the current system to minimise the impact of child-rearing on women's careers is essential and should accompany work on removing gender stereotypes of women as the main child rearer and men as the breadwinner.
"Access to affordable childcare is crucial for supporting women's workforce participation and economic empowerment in Australia. While the Child Care Subsidy aims to alleviate this burden, it falls short of providing the necessary accessibility, particularly for middle and high-income families. This creates a disincentive for secondary earners, often women, to work additional days, as their earnings are offset by childcare costs. To truly close the gender pay gap, we need accessible and equitable childcare systems that enables all parents to pursue their careers without financial and professional penalty."
A surprising number of couples say they share household duties equally. However, 50% of women say they are primarily responsible for household duties compared to 26% of men.
Who does the lion share of specific household chores and how does this entrench gender stereotypes?
As expected, women perform the majority of the cleaning, laundry and caring of children. Meanwhile men take care of the rubbish, gardening and outdoor cooking on barbeques. Household admin, driving children to activities and grocery shopping are the household duties with the smallest split, however women are still doing these activities slightly more than men.
"Despite progress towards gender equality, traditional gender roles continue to dictate the distribution of household responsibilities, with women disproportionately bearing the burden of domestic duties. This unequal division not only reinforces outdated stereotypes but also limits women's opportunities for economic participation and advancement."
Being paid the same for performing the same work or different work of equal or comparable value has been a legal requirement since 1969.
However, over 1 in 5 Australians (22%) say they have experienced or witnessed gender-based pay inequality in their workplace.
"Equitable and inclusive workplaces are crucial in us eliminating the gender pay gap in Australia, so we must create environments where reporting discrimination is encouraged and acted upon without fear of repercussions, ensuring all employees are valued equally for their contributions."
More than half (52%) of the Australians who experienced or witnessed gender-based pay discrimination reported it. Of these people, 42% said action was taken however, disappointingly the majority (58%) said no action was taken. Worryingly 15% didn't report gender-based pay inequality for fear of repercussions and a further 22% didn't because they didn't think any action would be taken. A small percentage (6%) said a lack of knowledge stopped them from reporting on gender-based pay discrimination.
"I've experienced this twice that I know of, at two different workplaces. Once, I was offered a contract editing role with a one month-trial. After the trial I was offered the role full-time, but with a catch: the pay was reduced 20%. By this stage I really loved the job, so I accepted the pay cut. I had a male journalist reporting to me, and later learned he was earning more than my initial 'higher' pay, even though my role was senior to his. Another time, in an interview I was asked my expected salary and I gave a range. I was offered the role at the absolute bottom end of that range and I accepted. I later learned a man was hired within a few months of me, in an identical role, and his salary was the top end of the range I had quoted. The kicker? We were hired by the same person."
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