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The Guardian - AU
The Guardian - AU
National
Patrick Commins Economics editor

‘Progress is happening’: gender pay gap narrows but Australian women still earn $28,000 less than men

Illustration shows a business man walking on 100 dollar notes above a business women walking on 50 dollar notes.
The gender pay gap has worsened among executives, with women earning a base salary of $83,493 lower than their male counterparts. Composite: Victoria Hart/Getty images

Australia’s gender pay gap narrowed further in 2025, but women still earn on average about $28,000 a year less than men, the Workplace Gender Equality Agency’s latest equality scorecard has revealed.

Women earn, on average, 78.9 cents for every $1 men earn, according to the analysis of 5.4 million Australian workers across more than 8,200 employers.

This gender pay gap of 21.1% in 2024-25 was a 0.7 percentage point improvement on the previous year.

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While the gap remained substantial, WGEA’s chief executive, Mary Wooldridge, said “progress is happening” – and at an accelerating pace.

“Employers are shifting the dial towards fairness which is helping to close the gender pay gap,” she said.

“Reductions to the pay gap and modest improvements towards gender-balance in leadership roles are underpinned by more employers having policies and taking action that can break down gender norms about leadership and caring responsibilities, as well as improving employee safety.”

Western Australian employers reported the biggest pay gap, at 28.8%, and Tasmanian employers the smallest, at 10.6%, although all states reported an improvement.

The picture was much worse at the very top of the organisational chart, however, where chief executive salaries showed the gender pay gap had widened by 1.2 percentage points over the past 12 months, to 26.2%.

The base salaries of women CEOs were $83,493 lower than their male counterparts, the report showed, and this divide blew out to $185,335 once superannuation, bonuses, overtime and additional payments were included.

Women accounted for only about one in five CEOs, one in three board directors and four in 10 managers.

The report showed working men were taking 20% share of primary carer parental leave – an increase of 3 percentage points.

“Employers should review their policies to ensure men have equal access to parental leave and flexible working arrangements,” Wooldridge said.

“This should be supported by a culture that encourages and enables both men and women to use this leave.”

Research by Jobs and Skills Australia earlier this year found that men are paid more than women in 98% of occupations, even in female-dominated industries like nursing.

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