Despite some progress, the disparity between what men and women earn for comparable work is a pressing concern.
One of the first actions taken this year by FSC’s Empower Women was the submission to Parliament in January 2025 supporting the change through the Employment Relations (Employee Remuneration Disclosure) Amendment Bill to protect employees who discuss or disclose their remuneration.
Empower Women support the intent of the bill and clause 110C(1) and is considered to be a positive step towards the bill’s objective of greater transparency in pay and allow any pay discrimination to be more easily identified and remedied.
In June 2024, New Zealand's gender pay gap in the financial and insurance services stood at 29.3%, according to the Ministry for Women. This statistic, while lower than in many countries, highlights significant inequities in earnings. The gap isn't merely a number; it reflects systemic barriers, unconscious bias and inequities in the workplace.
Women, particularly those in leadership roles, frequently face challenges in achieving pay parity with their male counterparts. For women of Māori and Pasifika heritage, the disparity is even more pronounced.
The issue is compounded by the hidden economic costs of the pay gap. Lower earnings for women reduce their lifetime income, impact savings for retirement, and weaken the economic resilience of families. In a society striving for equality and fairness, such disparities hinder progress and reinforce cycles of disadvantage.
As discussed in RNZ’s article, "Closing the Gender Pay Gap, One Disclosure at a Time," disclosure alone is not the answer. It must be paired with actionable strategies to close the gap. Employers need to conduct regular pay audits, address biases in recruitment and promotion, and provide clear pathways for career advancement. Collaboration across industries, as well as partnerships between government and private sectors, will be essential to achieving these goals.
Global Women describes the gender pay gap as a "hidden economic crisis," emphasising that closing the gap will require systemic change. Their analysis highlights the need for holistic approaches that tackle structural inequities and cultural biases. The organisation calls for measures such as flexible working arrangements, robust parental leave policies, and education initiatives to shift societal norms around gender roles.
Closing the gender pay gap is not an ethical imperative, it is an economic necessity. Research consistently shows that diverse and inclusive workplaces are more innovative and profitable. Addressing pay inequities will not only benefit individual employees but also contribute to a stronger and more equitable economy.
Pay transparency has emerged as a powerful tool to address the gender pay gap. By disclosing pay practices, companies can identify disparities and take action to rectify them. The proposed Amendment 110c of the Employment Relations (Employee Remuneration Disclosure) Amendment Bill, supported by FSC’s Empower Women, is one crucial step in this direction.
Yet sustained effort is needed. By embracing transparency, fostering collaboration, and committing to systemic change, New Zealand can lead the way in creating a future where pay equity is no longer an aspiration but a reality.
And it’s an area that FSC’s Empower Women is determined to drive change.