Pay equity
A real issue for women is the increasing gap between men and women's pay in Australia. In fact, pay equity in 2009 was exactly where it was 20 years ago, and this year it is even worse!
The difference in pay starts as soon as women enter the employment market. Entry level graduate women earn on average $2000 per annum less than male graduates according to the Graduate Careers Australia media release dated 28 July 2009.
Women earn less than men at all points of the employment spectrum. The National Centre for Social Economic Modelling (NATSEM) estimates that on average, women will earn almost $1 million less than the average Australian man over her lifetime.
What is pay equity?
- Pay equity means receiving equal pay for equivalent work
- It also means putting an end to systemic gender-based discrimination.
Women's point of view on pay equity
2020women has conducted two surveys on pay equity. You can find the full reports on the Point of View pages.
Pay equity varies with age
A report released this year by AMP.NATSEM (see below) showed that there is approximately 28% difference between men and women's annual wages between the ages of 25 to 34 years but this gap increases to 40% later in life. The same report also showed that men with children earn the most (they receive on average an income of $64,900 between ages 35-44) while women with children earn the least (earning on average an income of $33,500 between ages 35-44 years).
The difference increases as women move up the employment ladder. According to the Equal Opportunity for Women in the Workforce Agency's report (see below), the pay gap for women and men in key management roles is around 28.3%.
As a result of pay inequity, the HREOC submission to the Review Panel on Australia's Future Tax System (February 2009) stated that retirement savings for women are less than half that of men.
Plus 66: women work 66 days more than men just to keep up!
The Equal Opportunity for Women in the Workplace Agency (EOWA) marked the first Equal Pay Day in Australia in 2008. The date for Equal Pay Day changes each year as it is calculated by adding the extra days many women work after the end of the financial year (30 June) so that they are earning the same as men.
In 2008, Equal Pay Day fell on August 27.
In 2009 the gender pay gap increased to 17.2%, so four extra days were added to the gap between the end of the 2009 financial year and Equal Pay Day.
Equal Pay Day 2009 fell on 1st September: 63 days after 30 June. In 2009, women worked on average 63 days just to earn the same pay as men.
In 2010, women's wages slipped further behind those of men, and women now have to work 66 days more than men just to keep up!
Diversity Council Australia and the Equal Opportunity for Women in the Workplace Agency (EOWA) also take aan active interest in pay equity for women. The EOWA web site has lots of posters and video clips on the subject.
Interesting reading
She works hard for the money: Australian women and the gender divide
This is an AMP.NATSEM Income and Wealth Report, Issue 22, April 2009
Pay Power and Position: beyond the 2008 EOWA Australian census of women in leadership
Published by EOWA in June 2009, this also is an interesting read.
Female lawyers lose out in crunch is an article that appeared in the Australian on 26 June 2009. It tells how a survey showed that women were being excluded from partnerships in legal firms, and how the economic downturn was being blamed for this.
Diversity Council Australia's submission to the Federal Government's Senate Committee Review into the effectiveness of the Commonwealth Sex Discrimination Act is also a good read on equity issues
Pay Equity Statistics published by the Equal Opportunity in the Workplace Agency in 2009
EOWA has many other useful links on the subject of pay equity. Check out their web site.