Equal work, equal pay: Philip Morris achieves Australian-first in closing gender pay gap

Philip Morris Australia has become the first organisation in the country to achieve EQUAL-SALARY certification.

In March 2019, Philip Morris International (PMI) became the first multinational to receive the global EQUAL-SALARY certification, awarded by the independent Switzerland-based EQUAL-SALARY Foundation, placing the organisation in illustrious company with companies such as PricewaterhouseCoopers Switzerland and the World Economic Forum.

And shortly after becoming the first company with the global certification, Philip Morris Australia has become the first Australian organisation to achieve it.

Australian government statistics show that there is an average 14.1 per cent pay gap between full-time male and female workers around the country.[1]

The independent analysis from the EQUAL-SALARY foundation revealed only a 0.9 per cent difference between what female Philip Morris Australia employees are paid compared to males.

Philip Morris Australia Managing Director Tammy Chan said it was important for people to be paid equally for equal work, regardless of gender.

“The pay gap is just one aspect of gender equality, and at PMI we’re also determined to close the gender gap in management,” Ms Chan said.

“This certification is public recognition for something we’ve been proud of for many years – equal pay for equal work.

“PMI is committed to making the world a better place, and that includes improving gender equality. It is one thing for an organisation to jump on a progressive movement with a flashy social media post and a catchy hashtag, but another to genuinely implement it.

“As a female leader and a mother of a young girl, I am determined to do my bit in making Philip Morris a destination of choice for the next generation of aspirational young women and I can only hope more organisations follow our lead in challenging the glass ceilings.”

The certification was only awarded after an extensive process in which PricewaterhouseCoopers (PWC) – the EQUAL-SALARY Foundation’s auditor – undertook a rigorous statistical analysis of staff salaries worldwide, interviewed management on their commitment to gender equality, conducted focus groups with staff, and reviewed internal HR policies for bias. From start to finish, this comprehensive process took some 18 months.

This acknowledgement comes just months after Philip Morris Australia was also awarded the federal government’s Employer of Choice for Gender Equality citation for a fourth successive year.

The EQUAL-SALARY certification means the 77,000 Philip Morris employees across 90 countries are paid equally for equal work, irrespective of their gender.

The goal is to have 40 per cent of Philip Morris management roles filled by women by 2022. Right now, that figure is 35 per cent – up from 29 per cent in 2014. On current progress, we are on track to meet this goal.

In Australia, 44 per cent of Philip Morris’ workforce is female including a female Managing Director, female Senior Legal Counsel and female Director of People and Culture among many women leading the organisation to a bold future.

/Public Release.