Gender pay gap narrows, remains above-average in professional services

Australia’s gender pay gap (GPG) fell by 0.7 percentage points in 2024–25, from 21.8 per cent to 21.1 per cent, data from the Workplace Gender Equality Agency (WGEA) has revealed. On average, Australian women now earn 78.9 cents for every $1 earned by men.

WGEA chief executive Mary Wooldridge said this above-trend drop in the GPG had been driven by an improved gender balance in high-powered roles, and continued progress in breaking down gender norms regarding paid and unpaid work.

“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,” Wooldridge said.

The professional, scientific and technical services sector, to which the accounting profession belongs, had the second-highest GPG after financial and insurance services. The sector had an annual base salary GPG of $26,550. When additional payments, including bonuses and overtime, were accounted for, the gap grew to $40,887.

This compares to an industry-wide average base salary GPG of $16,697, and an average total remuneration gap of $28,356.

While the WGEA celebrated the progress made towards gender pay parity, it noted that the rate of improvement remained slow. It is expected that legislated changes, including a new requirement for large employers to commit to gender equality targets from 2026, would accelerate the trend.

The report also revealed progress towards a more equal distribution of paid and unpaid labour between men and women. Men’s uptake of parental leave grew 3 percentage points to 20 per cent in 2024–25, following a 3 percentage point rise the year prior.

It also noted that employers were shifting from ‘primary’ and ‘secondary’ carer labels to a universal model, with 18.6 per cent of employers now offering universal paid parental leave.

“These results signal that employers are committing to the work of rebalancing the distribution of paid and unpaid care work between women and men. This rebalancing is one of the most important strategic objectives for workplace gender equality,” the report read.

“Unpaid care work is a vital contribution to society, but while men continue to face significant practical and cultural barriers to it, a disproportionate share will continue to fall to women, who will spend less time in the workforce and experience inequitable career and financial impacts.”

Looking forward, the WGEA said that there were further opportunities for firms to boost gender equality in their organisations. These included encouraging men to take parental leave, removing ‘carer’ labels, and boosting employees’ access to part-time and job share opportunities.

“Employers should review their policies to ensure men have equal access to parental leave and flexible working arrangements. This should be supported by a culture that encourages and enables both men and women to use this leave,” Wooldridge said.