Action by Australian employers is narrowing Australia's gender pay gap, according to a new report released by the Workplace Gender Equality Agency (WGEA) today.
Australia's Gender Equality Scorecard for 2024-25 reveals an above trend 0.7 percentage point (pp) drop in the gender pay gap to 21.1%, down from 21.8% last year. It means that for every $1 men earn, women earn, on average, 78.9 cents. This adds up to $28,356 in a year.
The Scorecard shows improvements in women in leadership roles and on Boards, in the upper quartile of earners and across the 6 key areas that drive fairer, safer, more equal workplaces.
WGEA CEO Mary Wooldridge said when the gender pay gap narrows, it signals employers are making progress towards meeting their employees' expectations of fair workplaces for everyone.
"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," Ms Wooldridge said.
"Employers are shifting the dial towards fairness which is helping to close the gender pay gap."
However, new data on CEO salaries - reported by all employers to WGEA for only the second time in 2025 - shows the gender pay gap at the top increased 1.2pp to 26.2% in the past 12 months. Women CEOs earn $83,493 less on average than men in base salary every year. When superannuation, bonuses, overtime and additional payments are included this difference increases to $185,335.
While the report identifies progress towards fairness and equality in workplaces, the rate of improvement is slow. Legislative reforms, including a new requirement for large employers to select and commit to achieve gender equality targets from 2026, are designed to accelerate that change.
"WGEA's 2025 Gender Equality Scorecard also highlights opportunities for employers to improve by taking comprehensive actions based on data and evidence," Ms Wooldridge said.
While 99% of employers have a policy to prevent sexual harassment, just 60% of employers had their policy reviewed by the Board. About one-third (36%) of Boards receive no training in this regard and one in 4 (24%) Boards have no data about sexual harassment prevalence reported to them.
"With positive duty requirements to prevent and eliminate unlawful behaviours such as sexual harassment it's essential Boards are actively engaged and ensuring the workplace is safe for all employees," Ms Wooldridge said.
There is further progress on men's uptake of parental leave (up 3pp in 12 months to 20%). This follows a 3pp increase last year. It's a positive sign of shifting expectations a new generation of fathers have about spending meaningful time with their young families.
"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," Ms Wooldridge said.
The report also investigates how performance bonuses and allocation of overtime can drive pay inequality between women's and men's average earnings. It finds that men earn 60% more, on average, from these payments than women.
"WGEA encourages all employers to undertake a comprehensive gender pay gap analysis and as part of that review performance pay structures and access to overtime, to ensure they are fair and accessible for everyone," Ms Wooldridge said.
"This should be an annual process, even if salaries are set by awards or market rates."
Key information for 2024-25
The analysis in WGEA's Scorecard uses information reported in 2025 by more than 8,200 employers, covering more than 5.4 million Australian workers.
the gender pay gap reduced 0.7 percentage points (pp) to 21.1%
for every $1 men earn, women earn 78.9 cents. Over a year, this adds up to a difference of $28,356
every State and Territory in Australia reduced their gender pay gap, with Western Australia recording the largest gap (28.8%) and Tasmania the smallest (10.6%)
men earn 60% more, on average, than women in discretionary payments (such as bonuses, allowances, overtime payments) and these additional payments make up a considerably larger percentage of total remuneration for men (12%) than women (6%)
men are taking a greater proportion of primary carer parental leave (20% of primary/universal parental leave is taken by men, an increase of 3pp)
22% of CEOs are women (no change in 12 months), 39% of key management personnel are women (up 2pp) and 43% of managers are women (1pp increase)
2 out of 3 (66%) employees work in an organisation dominated by one gender
women hold 33% of Board seats (up 1pp) and 21% of Chair roles (up 1pp) but nearly a quarter (24%) of Boards still have no women
50% of employers have a gender pay gap above 11.2% with only 22.5% of employers having a gender pay gap in target range of -5% to +5%
3 key areas of opportunity for employers:
ensuring workplace safety
improving gender-balance in the organisation and on Boards
dismantling stereotypes about leadership, work and caring.
