The gender pay gap at employer level continues to narrow, with results varying across industries. In retail, some subsectors, including fashion, continue to reflect workforce composition and pay distribution patterns, according to the 2026 Employer Gender Pay Gaps Report from the Workplace Gender Equality Agency (WGEA).
The report covers 8500 private-sector workplaces, 126 Commonwealth public-sector employers and 1850 corporate groups, representing close to 5.9 million employees in Australia. The data is based on reports submitted by August 31 last year.
Employers report further reductions
WGEA stated that the midpoint of the average total remuneration gender pay gap across private-sector employers was 11.2 per cent, down 0.9 percentage points over 12 months. On a median total remuneration basis, the gap stands at 8.0 per cent, also down 0.9 percentage points year on year.
More than half of employers reduced their gap compared with the prior year. The proportion of employers within a ±5 per cent range, defined by WGEA as an acceptable operating range given workforce and pay movements, increased by 1.1 percentage points compared with 2023–24. The share of women in the highest pay quartile also increased over the year.
Workforce composition and pay distribution remain key factors
WGEA stated that the gender pay gap reflects gender composition and the distribution of earnings across pay quartiles within organisations.
While labour force participation rates for men and women are similar, men are 1.8 times more likely to be in the highest pay quartile. Women are 1.4 times more likely to be in the lowest pay quartile. Average total remuneration in the highest quartile is 3.7 times that of the lowest quartile. When one gender is concentrated in higher pay quartiles and the other in lower quartiles, the overall gap widens.
Higher-paying industries continue to record larger gaps
Industries with a median gap above the national median of 11.2 per cent have more than half of employers reporting gaps above the national level. Financial and insurance services, construction, mining, and electricity, gas, water and waste services remain among the industries with the largest median gaps.
WGEA reported that industries with higher average remuneration also record larger gender pay gaps, reflecting differences in pay between quartiles and the distribution of women and men across those quartiles.
Additional payments contribute to gaps
Payments above base salary, including superannuation, bonuses and overtime, contributed to employer gender pay gaps. While superannuation is mandated, bonuses and overtime are determined at employer level.
On average, women receive lower amounts from these payments than men, contributing to lifetime earning differences. Using the superannuation guarantee rate of 11.5 per cent in 2024–25 to estimate the proportion of additional payments attributed to superannuation, WGEA calculated that the mid-point gender pay gap on discretionary pay alone is 29.7 per cent. This is down from 31.6 per cent in 2023–24.
Employers in male-dominated industries recorded larger gaps in discretionary pay and made less year-on-year progress in reducing them.
WGEA recommended that employers conduct comprehensive gender pay gap analysis, implement actions based on data, and set targets to support accountability and track progress. While the overall trend indicates movement, outcomes vary by industry, workforce structure and remuneration and promotion policies within organisations.
