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Public Sector's Smaller Gender Pay Gap: Lessons from Australian Employers

Strategic Insights

— 1 min read

The Australian public sector has demonstrated a much smaller gender pay gap compared to the private sector, a significant achievement attributed to the attainment of gender balance in managerial and board roles. The Workplace Gender Equality Agency's report highlights several public sector employers that have successfully addressed the pay gap through deliberate actions and targeted strategies. These employers have achieved a substantial reduction in the pay gap, with some even reporting a slight positive pay gap in favor of women.

Key Takeaways:

  • The Commonwealth public sector has a gender pay gap of 6.4%, compared to 21.1% in the private sector.
  • The public sector's better outcome is largely due to achieving gender balance at managerial and board levels.
  • Long-term and deliberate actions to address gender equality, such as conducting pay gap analysis and formulating a gender-equality strategy, have contributed to the public sector's success.
  • 55 out of 120 public sector employers have a gender pay gap within the target range of between -5% and +5%.
  • Several employers, including the Department of the Prime Minister and Cabinet, Department of Treasury, and the Office of the Fair Work Ombudsman, have achieved a gender pay gap of zero or virtually zero.
  • The National Offshore Petroleum Safety and Environmental Management Authority and the Coal Mining Industry Corporation reported the largest gender gaps in median total remuneration, with 50.4% and 31.7%, respectively.
  • Half of Commonwealth public sector employers have a gender pay gap larger than 5%, but this is still a better performance than in the private sector, where 60% of companies exceeded the 5% threshold.

Statistics:

  • The average difference in total remuneration between men and women in the public sector is $8,200 per year.
  • Women working in the public sector earn, on average, 5.7% less than men in the Australian Public Service (APS), equivalent to $7,357.
  • In public sector agencies outside the APS, the gender pay gap is 8.8%, with men's average salary of $127,354 compared to women's $116,157.
  • 96% of public sector employers promote flexible working throughout the organization, but only 56% offer an online option for all team meetings, and only 5% report that management positions can be designed as part-time.

Sources:

  • The Conversation:
  • The Conversation:
  • Workplace Gender Equality Agency:

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