-- New data finds gender pay gap starts in 20s, peaks at nearly $53,000 a year between ages 55-59 and it does not end before retirement --
-- Key turning point at age 34 that can limit women's earnings across their lifetime --
-- Employer actions to improve fairness will also benefit men --
A new report released today by the Workplace Gender Equality Agency (WGEA) has found the financial cost of the gender pay gap accelerates across a woman's lifetime, peaking in the late 50s at a difference of $53,000.
WGEA's Ages and Wages report investigates how and why the gender pay gap changes at different stages across a lifetime. It lists key evidence-informed actions employers can take to address it.
WGEA CEO Mary Wooldridge said women will continue to experience a dramatic lifetime financial impact if further action is not taken to address fairness at work.
"Our report shows how key employer interventions at critical times could reduce the gender pay gap and improve women's ability to earn and save for retirement," Ms Wooldridge said.
"It also provides insight into how those same actions can help address men's concerns including lack of flexibility, long-hours work culture and fair and equal access to parental leave.
"We're asking employers to change the story and shape the future. Taking at least one of these actions this year will make your workplace fairer."
Ages and Wages uses information reported by more than 7,400 employers to WGEA in 2024. It represents the experience of more than 5.1 million employees across Australia in 19 industries.
It found that while women entering the workforce in their late teens earn slightly more, on average, than men ($376 or a gender pay gap of 2% in favour of women), between 20-24 years of age, the gender pay gap switches to 1.1% in favour of men ($1,940). It then rises significantly to a peak between the ages 55-59 at 31.4%. This equates to a difference of nearly $53,000 between the average total remuneration of women and men.
A key turning point occurs around age 30 when the gender pay gap rapidly accelerates. Critical drivers of this acceleration include a lack of availability of part-time manager roles and bonus and overtime systems that favour men.
To consider the cumulative financial impact, adding the earnings difference for every age from 15-67, women earn, on average, about $1.5 million less than men.
"Closing the gender pay gap also enhances women's capacity to invest for their retirement, provide for their family, afford housing and have financial independence," Ms Wooldridge said.
The key actions employers can take include offering part-time or job-share manager roles to both women and men, pricing roles by market value instead of asking candidates about past salaries and to set targets for gender-balance in occupations and roles (at least 40% women and 40% men).
