Data on the public sector gender pay gap has been released as part of a new report. Last week, the Workplace Gender Equality Agency released public sector employer data for the first time.
It follows new legislation introduced in 2022, requiring public sector employers to report their gender equality indicators to the Workplace Gender Equality Agency from 2023. This is a similar requirement to that enforced on large private sector companies.
The data reveals the gender pay gap in the public sector is 6.4 per cent, much lower than the private sector’s 21.1%.
Women in the commonwealth sector earn, on average, 94 cents for every dollar earned by men. This equates to about $8200 less per year.
Nearly half of all public sector employers had a pay gap in the target range of plus or minus 5 per cent.
More than half of public sector employers improved their gender pay gap in the last year.
So what are the reasons for this trend, and are there any areas for improvement?
What is behind this trend?
Experts say a better pay balance in the public service could be attributed to gender balance at the managerial and board level. In the public service, 54% of those in management roles are women. Meanwhile, 47% of the highest-paid public servants are women. Not only does this lead to more women in higher-paying positions, it also helps improve workplace culture. Women in management can create a ripple effect, enhancing gender equality in the workplace.
Additionally, the public sector features more standardised recruitment, promotion and wage-setting practices than the private sector. This reduces the scope for personal subjectivity and implicit bias in the hiring process.
What are some areas for improvement?
Despite the public sector’s performance, there is still room for improvement. Some areas of the public service are performing better than others in terms of pay equity. Half of all Commonwealth public-sector employers have a pay gap larger than 5%.
The gender pay gap in departments such as the Department Of Prime Minister & Cabinet, the Department Of Treasury and the Department Of Social Services is almost zero. However, the National Offshore Petroleum Safety and Environmental Management Authority has a gender pay gap of 50%. The Coal Mininng Industry Corporation has a pay gap of 31%. These figures show there is still work to be done, particularly in traditionally male-dominated sectors.
Pay gap discrepancies in the public sector are driven by men receiving greater financial benefits from payments above base salary than women. This includes over-time, performance bonuses and superannuation.
What can be done?
The data shows that when pay equity targets are set in the public service, these are often met. For example, the Australian Government set a target for 50% of all government board positions to be filled by women. This target has now been met, showcasing the importance of setting targets for gender equity in the public service.
The Workplace Gender Equality Agency recommends that employers set targets to increase female workforce participation in male-dominated roles, and vice versa.
Employers should also conduct gender pay gap analyses and develop gender equality strategies.
While the gender pay gap in the public service is better than that in the private sector, there is still room for improvement.
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Article References
Karp, P (21 May 2025) ‘Public sector gender pay gap halves, leaving private sector behind’, Financial Review, accessed 27 May 2025.
Lyons, K (21 May 2025) ‘ABC and SBS gender pay gaps revealed as public sector wage data released for the first time’, The Guardian, accessed 27 May 2025.
Risse, L (21 May 2025) ‘The public service has a much smaller gender pay gap than the private sector. It’s a big achievement’, The Conversation, accessed 27 May 2025.