Gender Pay Gap Calculator
Illustrate the gender pay gap by comparing the average earnings of men and women in the workforce.
Quick Use Samples
Your Profile
Pay Gap Analysis
For your profile in the technology industry, the estimated gender pay gap is 8.4%. This suggests that, on average, a male in a similar role earns $8,000 more per year than a female. The adjusted median salary for males is $95,000, while for females it is $87,000. Your salary of $75,000 is 21.1% below the male median and 13.8% below the female median.
Lifetime Earnings Gap
Your Salary Comparison
Salary Comparison
Key Insights
- The pay gap widens significantly with seniority and in high-paying industries like Legal and Construction.
- Career breaks, often taken by women for caregiving, have a long-term compounding effect on earnings.
- Unconscious bias in performance reviews and promotion decisions remains a significant factor.
- Fields dominated by women (e.g., healthcare, education) are often systematically undervalued.
Actionable Steps
- Research: Use salary comparison tools and industry reports to benchmark your pay.
- Negotiate: Don't be afraid to negotiate your starting salary and subsequent pay rises.
- Advocate: Push for pay transparency policies within your organisation.
- Mentor: Support and mentor other women in your field to help them advance.
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What is the Gender Pay Gap?
The gender pay gap is the difference between the average earnings of men and women in the workforce. In Australia, it is officially measured by the Workplace Gender Equality Agency (WGEA) as a percentage difference. It's not about two people in the same job being paid differently (which is illegal), but rather a measure of women's overall position in the paid workforce.
Behind the Formula
The calculator uses the national or industry-specific gender pay gap percentage to show the disparity. The formula is: ((Average Male Earnings - Average Female Earnings) / Average Male Earnings) * 100. The tool then applies this percentage to a man's salary to show the equivalent average woman's salary, and vice-versa, to illustrate the financial impact of the gap over a week, a year, and a career.
Expert Insights
- The gap is influenced by complex factors, including female-dominated industries being historically lower-paid, a lack of women in senior leadership roles, and the disproportionate share of unpaid caring and domestic work undertaken by women.
- The 'motherhood penalty' is a significant contributor. Women's careers and earnings can be severely impacted by time out of the workforce to have children, from which it can be difficult to recover.
- Increasing pay transparency is a key tool in closing the gap. From 2024, WGEA is publishing the gender pay gaps of individual large employers in Australia, creating pressure for companies to improve.
Actionable Tips
- Research your market value. Use salary benchmarking tools and talk to recruiters to understand what your skills are worth, ensuring you're negotiating from an informed position.
- Advocate for pay transparency within your workplace. Support policies that make it easier to know if you are being paid fairly compared to your peers.
- Men can be powerful allies. They can support female colleagues in negotiations, advocate for equitable parental leave policies, and challenge biased assumptions in the workplace.
Real-World Examples
The National Average
Based on the WGEA national average pay gap of around 22%, if a man earns an average of $90,000 a year, a woman on average earns only $70,200, a difference of nearly $20,000 per year.
Impact on Superannuation
Over a 40-year career, the gender pay gap leads to a significant 'superannuation gap'. A lower lifetime income means lower compulsory super contributions, resulting in women retiring with substantially less super than men.
Industry Differences
A male construction manager and a female healthcare manager might be in fields with very different pay scales. The pay gap reflects that male-dominated industries, like construction, often have higher average pay than female-dominated industries like healthcare, contributing to the overall gap.
Glossary of Terms
WGEA (Workplace Gender Equality Agency)
An Australian Government statutory agency responsible for promoting and improving gender equality in Australian workplaces.
Pay Secrecy
Workplace policies or clauses in employment contracts that prohibit employees from discussing their pay with colleagues. These are now banned in Australia.
Motherhood Penalty
A term describing the career and earnings disadvantages women face after having children, such as lower pay and fewer promotion opportunities.