Businesses in Australia Face Significant Loss Due to Widening Gender Pay Gap Causing One Third of Women to Consider Resignation
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In Australia, the gender pay gap continues to be a significant issue, despite recent improvements. On National Equal Pay Day, which represents an additional 50 days into the financial year that women must work to earn the same as men, the national gender pay gap, as calculated by the Workplace Gender Equality Agency (WGEA), stands at 11.5%.
The persistent pay inequity is causing concerns for both businesses and employees. According to a recent survey, about one in three women in Australia are considering quitting their jobs in part due to gender pay disparities, indicating a direct link between pay inequity and employee attrition.
The undervaluation of industries with high female participation, such as healthcare, education, and administration, drives systemic pay imbalances. These imbalances adversely affect overall business outcomes and productivity by limiting diversity and inclusiveness in high-level roles.
The government has been making focused efforts since 2022 to address these issues. Wage improvements in the care economy and stricter workplace laws have contributed to narrowing the gap and increasing women’s workforce participation to a record 63.5%. However, the gender pay gap in industries like Financial and Insurance Services remains high at 21.0%, and in the private sector overall, the average total remuneration gender pay gap is 21.8%.
The causes of the gender pay gap are complex and multifaceted. Occupational segregation, undervaluation of female-dominated sectors, differences in promotion and work patterns, as well as societal expectations around unpaid caregiving, all contribute to ongoing disparities adversely impacting business.
First Nations women in Australia experience even greater pay gaps, with an accumulated gap of 38.1% compared to white men. This highlights deeper systemic inequalities that affect workforce diversity and inclusion efforts.
The Workplace Gender Equality (Gender Equality Targets) Instrument 2025 now requires employers with 500 or more employees to select and commit to achieving specific gender equality targets. This aims to increase transparency and encourage accountability.
The Workplace Gender Equality Act 2012, which requires Australian employers with 100 or more employees to report their gender equality data to WGEA, has helped increase transparency and encourage accountability. However, the data presented on Equal Pay Day 2025 confirms that while some incremental progress has been made, the gender pay gap remains a widespread and systemic issue.
Addressing these challenges requires sustained policy intervention and organizational commitment to pay transparency, equal opportunities, and valuing all types of work equitably. By doing so, businesses can improve their performance, talent retention, and contribute to a more inclusive and equitable society.
[1] [Workplace Gender Equality Agency (WGEA) Report, 2025] [2] [Australian Human Rights Commission Report, 2024] [3] [Australian Bureau of Statistics, 2023] [4] [Financy Women’s Index Report, 2025] [5] [University of Sydney Report, 2024]
