Australia’s gender pay gap has edged in the right direction this year, according to new findings from the Workplace Gender Equality Agency (WGEA). The latest Equality Scorecard shows that while progress is happening, the divide between what men and women earn remains substantial — and in some corners of the workforce, it’s actually widening.
Where the gender pay gap stands in 2025
Across more than 5.4 million workers and 8,200 employers, WGEA found that women earn the equivalent of 78.9 cents for every dollar paid to men. Put differently, the average woman takes home around $28,000 less per year than the average man.
The national pay gap now sits at 21.1%, which is a slight improvement of 0.7 percentage points on the previous year. WGEA chief executive Mary Wooldridge described this as “progress” — and, importantly, progress that is beginning to speed up — but emphasised that deep structural issues remain.
Why the gender pay gap persists
Wooldridge says the shift toward fairer pay is being driven by employers introducing stronger policies around gender equality, flexible work and employee safety. These changes are slowly dismantling outdated assumptions about who leads in the workplace, and how different types of work are valued.
But even with these improvements, disparities run deep. The gap varies state to state, with Western Australia recording the largest divide (28.8%) and Tasmania the smallest (10.6%). All states, however, saw at least some improvement from the previous year.
Perhaps most concerningly, WGEA’s data shows the pay gap among CEOs has widened, not shrunk, growing by 1.2 percentage points to 26.2%. Specifically, female chief executives earn $83,493 less in base salary than male CEOs, and the difference grows to $185,335 when bonuses, superannuation and other benefits are included. Representation is also still lopsided: women hold only one in five CEO roles, one in three board seats, and four in ten management positions.
Similarly, the pay gap isn’t confined to male-dominated industries. Earlier research from Jobs and Skills Australia reveals that men earn more than women in 98% of occupations — including sectors where women make up most of the workforce, like nursing and care work.
Shifts in parental leave are encouraging
There is, however, one encouraging sign: more men are taking primary carer parental leave. Their share has climbed to 20%, up 3% from the previous year. It’s a small but meaningful shift in a country where caring responsibilities have historically fallen disproportionately on women.
Wooldridge argues that employers must ensure men feel equally empowered to take parental leave and request flexible working. “Policies are only half the battle,” she said. “Workplaces also need cultures that genuinely support men and women to use these entitlements.”
