Understanding pay equity and the gender pay gap
The gender pay gap refers to the difference in average earnings of men and women. Pay equity is the process of narrowing the gap in remuneration between females and males.
In February 2008 the gender pay gap in Western Australia was 28 per cent. This means that on average for every dollar earned by a full time male employee, full time female employees earn 72 cents. This pay gap figure is based on full time adult ordinary time earnings figures compiled by the ABS. Part time and casual employees are not included, nor are overtime payments.
Western Australia has the biggest gender pay gap in Australia. Nationally the gender pay gap was 16 per cent in February 2008, and has been gradually improving over recent years. In Western Australia, the difference between men and women’s pay has been steadily worsening over the last twenty years.
It is illegal to pay men and women doing the same job different wages. The issue of pay equity is much broader than comparing remuneration for like-to-like jobs. Pay equity also includes a consideration of access to, and the nature of, part time and casual employment and the ability of people to balance caring and work responsibilities. Western Australia has a highly sex segregated labour market, meaning that women and men tend to be clustered into separate occupations and industries. Those occupations and industries that are male dominated have historically been more highly valued with ‘men’s work’ paid more than ‘women’s work’. Often the skills and work associated with female labour have been seen as natural and innate and, hence, have not been highly valued in the labour market.