Mind the Gap: Why the Gender Pay Gap Still Persists and How We Can Close It

Imagine stepping onto a train platform where two people buy tickets for the same destination – but one is charged 21.8% more than the other. They board the same train, sit in the same seats, and are taking the same trip, yet one passenger is consistently asked to pay more for the ride. This isn’t just an abstract scenario; it’s the reality of Australia’s gender pay gap.

For every $1 a man earns, a woman earns just 78 cents – a gap that translates into a $28,425 yearly shortfall. And while we may like to think progress is automatic, the latest Workplace Gender Equality Agency (WGEA) data tells a different story.

The gender pay gap isn’t about men and women being paid differently for the same job – that’s illegal. Instead, it’s a reflection of systemic inequalities, from career progression to bonus structures, and from industry participation to unconscious bias.

• Base salary gender pay gap: Women earn 16.7% less than men on average.
• Total remuneration gender pay gap: The disparity widens to 21.8% when factoring in bonuses, overtime, and superannuation—all areas where men receive significantly higher payouts.
• Industry impact: Women are underrepresented in high-paying leadership roles and overrepresented in lower-paid quartiles, even in female-dominated fields.

Economist Alison Booth states, “If the gap were purely about women choosing lower-paying jobs, we wouldn’t see men dominating the highest-paid quartiles, even in female-majority industries.”

If the gender pay gap were just about different career choices, we’d expect a smooth, predictable ride. But the reality is more like a train ride riddled with hidden tolls – costs that disproportionately fall on women at every stage of their journey.

Women don’t just earn less because they choose lower-paying jobs. The gap is fuelled by a network of systemic barriers, including:

• Discrimination and bias at the station
  • Conscious and unconscious biases influence hiring and pay decisions, often before the journey even begins.
• Different tracks, different fares
  • Women and men tend to work in different industries, with female-dominated fields consistently undervalued.
• Speed limits on career progression
  • Lack of workplace flexibility makes it harder for women, especially mothers, to reach senior roles.
• Part-time penalties
  • More women work part-time, but this often comes with reduced career advancement opportunities.
• Unpaid labour delays
  • Women take on a greater share of unpaid care work, from childcare to household duties, impacting their long-term earnings.

A deeper look at WGEA’s 5.3 million employee dataset reveals that gender pay gaps aren’t evenly distributed—they fluctuate based on industry, company size, and seniority level.

Even in industries where women outnumber men, men are still more likely to hold the highest-paying jobs. Sociologist Christine Williams coined the term “glass escalator” to describe how men in female-dominated professions (such as nursing or teaching) tend to be promoted at faster rates than their female colleagues.

The gap isn’t just about base salary—it’s also about what’s added on top. Performance bonuses, commissions, and discretionary pay disproportionately go to men. WGEA’s data shows that the average remuneration gap ($28,425) is nearly double the base salary gap ($17,221), meaning much of the difference comes from rewards beyond salary.

• Women are less likely to negotiate raises due to social conditioning and bias.
• Decision-makers, often male, subconsciously reward employees who reflect their own paths to success.
• “Flexible” work arrangements for women, especially mothers, often come at the cost of fewer promotion and bonus opportunities.

• High-paying, male-dominated industries like construction, mining, and finance have the biggest gender pay gaps.
• Gender-balanced industries (e.g., retail, professional services) still show men earning more at the top, despite near-equal participation.
• Women-dominated industries (education, healthcare) have smaller pay gaps, but men still hold the highest-paying leadership roles.

As WGEA Director Mary Wooldridge puts it: “This is not just about choice. It’s about the structures that shape those choices – who gets mentored, who gets promoted, and who gets the biggest slice of the pie.”

We know the gap exists. The question is: How do we close it?

1. Pay Transparency: Shine a Light on Pay Gaps
   Countries like Iceland and the UK have already introduced mandatory pay transparency laws, requiring companies to report and rectify gaps. Australia is moving in this direction, with WGEA now publishing employer-level pay gaps.

2. Rethink Promotion & Bonus Criteria
   Companies need to audit how performance pay is awarded and ensure flexible workers (often women) aren’t penalised for working differently.

3. More Women in Leadership
   Women hold only 19.4% of CEO roles in Australia’s top companies. To change this, organisations should:
   • Implement targets for female leadership.
   • Provide mentorship and sponsorship
   • Support flexible career paths that don’t sideline women.

4. Industry-Wide Changes
   • Encourage more women into male-dominated industries through education and targeted hiring.
   • Improve paid parental leave for both men and women to normalise caregiving roles.

Right now, the train is moving too slowly toward equality – but we can switch tracks.

As Ruth Bader Ginsburg said: “Women belong in all places where decisions are being made. It shouldn’t be that women are the exception.”

Employers have the power to rewrite the story—to move from being part of the problem to being part of the solution.

Let’s not just mind the gap – let’s close it.

Are you ready to move beyond the statistics and make real change in your organisation? Whether you need guidance on pay transparency, strategies to foster an equitable workplace, or support in creating a culture where everyone thrives, our team of experts is here to help.

Call us today on 1300 406 005 or email info@performhr.com.au to get started.