Unequal Pay- It Doesn't Add Up!

Every year, Equal Pay Day serves as a stark reminder of the ongoing gender pay gap in Australia. This year, Equal Pay Day fell on 19 August, marking the 50 extra days into the new financial year that Australian women must work to earn the same, on average, as men did in the previous financial year. That’s right—50 extra days!

The Theme: "It Doesn't Add Up" 

This year's theme, "It doesn't add up," highlights the absurdity of the gender pay gap. After all, the math shows us that women are working significantly longer than men for the same pay. But why does this gap still exist in 2024?

Understanding Equal Pay vs. The Gender Pay Gap

Let’s break it down. Equal Pay measures the difference between the average weekly full-time base salary earnings of women and men.  It's expressed as a percentage of men’s earnings and provides a clear picture of the overall earnings disparity between women and men in the workforce.

While Equal Pay focuses on pay equity, the gender pay gap reflects broader inequalities in the workforce and economy. These include the overrepresentation of women in lower-paid industries and roles, career interruptions due to caregiving responsibilities, and other systemic factors. This means the gender pay gap is not just about unequal pay but about the overall structural disadvantages that women face.

What’s Causing the Gap? 
According to research by the Workplace Gender Equality Agency (WGEA), three main factors contribute to Australia's gender pay gap:

* Gender Discrimination (36%): Yes, it’s still happening. Whether conscious or unconscious, gender bias plays a significant role in salary differences.

* Care, Family Responsibilities, and Workforce Participation (33%): Women are more likely to take on caregiving roles, which often leads to career interruptions, part-time work, or lower-paying jobs.

* Gender Segregation by Job Type and Industry (24%): Certain industries and roles are dominated by one gender, and typically, male-dominated industries tend to offer higher pay.

How is Equal Pay Day Calculated? 

You might be wondering, how does WGEA calculate Equal Pay Day? It’s all about the numbers. WGEA uses data from the Australian Bureau of Statistics (ABS) on average weekly earnings to determine how many extra days women need to work to catch up to men.

For example, in February 2024, ABS reported that men working full-time earned an average of $1,982.80 per week. Women, on the other hand, earned $1,744.80 per week—a difference of $238 every week, or $12,376 per year. To earn that extra $12,376, women would need to work an additional seven weeks, which landed us on 19 August—this year’s Equal Pay Day.

Why Should You Care?

The gender pay gap affects everyone, not just women. When women earn less, it impacts their financial security, superannuation savings, and overall economic participation. Closing the gap isn’t just about fairness; it’s about boosting the overall economy and ensuring everyone has a fair shot at financial independence.

What Can We Do?

It shouldn't just be one day a year—like this year's 19 August—when we are thinking of the gender pay gap. Raising awareness, advocating for change, and challenging the status quo must be ongoing efforts throughout the year. Whether you’re an employer, employee, or simply someone who cares about equality, there are steps you can take to help close the gap. Support policies that promote pay transparency, encourage flexible working arrangements, and challenge gender stereotypes in the workplace.

It’s time to take action that leads to real change and work towards a world where the numbers do add up.