For many women, the gender pay gap doesn't end when they leave work – it follows them into retirement.
It's well documented that lower earnings, interrupted careers and unequal responsibilities in the home mean Australian women consistently retire with less superannuation than men. And while this imbalance is multilayered and hard to solve, a reform coming into effect this July could make a meaningful difference.
Known as Payday Super, the reform will require employers to pay super contributions alongside wages rather than paying super once every three months, which was the previous rule. This will help workers access the benefits of compounding returns sooner. Here's why you should be paying attention.
What is Payday Super and when does it start?
From July 1, 2026, Australian employers will be required to pay superannuation at the same time they pay wages, marking one of the biggest changes to the super system in recent decades.
Currently, employers can legally pay super contributions on a quarterly basis. This means there can be months between when you receive your salary and when a portion of that money makes its way into your super account.
Under Payday Super, eligible workers will still receive the super guarantee rate of 12 per cent, but what changes is the timing. Instead of being paid quarterly, super contributions will be paid on payday, whether that falls weekly, fortnightly or monthly. This is positive for employees, because the earlier money enters a superannuation account, the sooner it can be invested and begin generating returns. Those returns are then reinvested, creating a cycle of growth known as "compounding".
Payday Super means that, rather than sitting with employers until the end of a quarter, workers' contributions will begin earning investment returns sooner. While the difference may seem negligible in the short term, the cumulative effect over a career can be significant.
Women stand to benefit most
While Payday Super will affect all Australian employees, its impact could be particularly significant for women.
As reported by The Point, recent taxation data from the Australian Taxation Office found men earn more than women in almost 96 per cent of occupations across Australia. The findings reveal that even when men and women hold the same job title, men are still more likely to take home higher annual wages.
The disparity persists even in industries dominated by women. Midwifery, for example, is a profession made up overwhelmingly of women, yet male midwives earn significantly more on average than their female colleagues.
Importantly, this issue extends far beyond annual income. Because superannuation contributions are calculated as a percentage of earnings, lower salaries translate directly into lower retirement savings. Over time, the gap compounds, leaving women worse-off than men when it comes time to retire. Looking at this graph shared by the ATO, men and women have nearly equal superannuation balances at ages 25-29. But after this point, the gap begins to widen.
Adding to this, women are also more likely to take career breaks to care for children or family members, work part-time and shoulder a greater share of unpaid domestic labour. While these responsibilities are essential, they typically come at a financial cost, reducing both immediate earnings and long-term retirement savings.
While Payday Super won't eliminate these structural inequalities, it could help maximise the value of the super contributions women do receive, allowing their retirement savings more time to grow.
