Lifetime impact of gender pay gap costs women millions
The gender pay gap accelerates throughout a woman’s working life, peaking in her late 50s, leaving female workers millions of dollars less than men over the course of their careers.
According to a report by the Workplace Gender Equality Agency (WGEA), women who enter the workforce as teenagers earn slightly more than men – $376 on average, equating to a two per cent gender pay gap in women’s favour.
However, between ages 20 and 24, the gender pay gap widens to 1.1 percent in favor of men, and then rises significantly to 31.4 percent between ages 55 and 59.
This works out to a difference of about $53,000 between the average total wages of men and women.
The report, called Ages and Wages, used information reported to WGEA by more than 7,000 employers in 2024 and represents the experience of more than 5.1 million workers in 19 industries across Australia.
WGEA has prepared the report for the first time, stating that a key turning point for female workers occurs around the age of 30, when the gender pay gap increases rapidly.
This is due to the lack of part-time managerial roles, as well as bonus and overtime systems that favor men.
WGEA CEO Mary Wooldridge said women will continue to experience a dramatic financial impact throughout their lives unless further action is taken to ensure fairness in the workplace.
“Our report shows how significant employer interventions at critical times can narrow the gender pay gap and improve women’s ability to earn and save for retirement,” he said.
“It also provides insight into how the same actions can help address men’s concerns such as lack of flexibility, long working hours and fair and equal access to parental leave.”
The cumulative financial impact is that if we factor in the earnings gap for each age from 15 to 67, women earn an average of $1.5 million less than men.
“We are asking employers to change the narrative and shape the future,” Ms Wooldridge said.
“Closing the gender pay gap increases women’s capacity to invest for their retirement, provide for their families, afford housing and achieve financial independence.”
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