Ahead of Equal Pay Day tomorrow, which marks the 50 additional days women must work each year to earn the same as men, new data reveals Australia is on a 21.5-year countdown to closing the gender pay gap.
A preview of the upcoming Financy Women’s Index (FWX) report shows the timeline to pay equity has improved slightly from 21.7 years in the previous quarter, as the national gender pay gap, based on ABS full-time average weekly earnings, fell to 11.5 per cent.
Over the longer term, there has been substantial progress - since the Financy Women's Index started measuring timeframes to gender financial equality in 2017, the number of years to equality in the Gender Pay Gap has dropped by 43 per cent from 37.5 years.
However, the full Financy Women's Index report, set for release in the first week of September, will highlight that the 21.5-year figure is only the median timeframe for achieving overall gender financial equality in Australia.
“Equal Pay Day is a stark reminder of the economic reality for women, and our 21.5-year timeframe quantifies the long road ahead," said Bianca Hartge-Hazelman, author and founder of the Financy Women's Index.
"While it's positive to see the number come down over the long term, it represents the median point in a much more complex journey.
“The fact that women have to work an extra 50 days into the new financial year just to catch up to men's earnings is unacceptable, and our full report in September will explore the structural barriers holding us back despite record female workforce participation.”
“We have made great progress towards equal pay for women, but we still have a long way to go and Equal Pay Day serves as a reminder of this,” said Dr Shane Oliver, chief economist AMP.
The preview data from the Financy Women’s Indext highlights a "two-speed economy" for pay equity. Industries showing the most significant improvement include Retail Trade (5.7 per cent gap), Transport, Postal and Warehousing (7.0 per cent gap), and Manufacturing (9.2 per cent gap).
However this progress is undermined by an alarming backslide in other key sectors. The Financial and Insurance Services sector saw its gap widen by 2.6 percentage points to 21.0 per cent, while the Health Care and Social Assistance sector still has the largest gap at 23.0 per cent.
"The deterioration in Financial and Insurance Services is a major handbrake on our national progress," said Hartge-Hazelman.
"It's this poor performance in key sectors that ensures Equal Pay Day remains a frustrating fixture on our calendar. The full Financy Women's Index will connect these dots, showing how these laggard industries impact the broader journey to financial equality for Australian women."
The complete Financy Women's Index report will provide analysis of all seven indicators of economic equality, including employment, leadership, superannuation, and unpaid work, offering the most holistic view of women's financial progress in Australia.
