Why Your Public Gender Pay Gap Will Be Bigger in 2025 (And What to Do About It)

Guidance for Australian employers with 100+ employees

If you’re responsible for gender pay gap reporting in your business, you’re likely aware that the Workplace Gender Equality Agency (WGEA) has introduced several significant changes for the 2024 reporting period.

As a result, the public reports released in 2025 will look different. They’ll be more detailed, more transparent—and for many companies, their gender pay gaps may widen.

Overview of changes

Here are the key updates from WGEA aimed at providing a clearer, more comprehensive view of gender equity within Australian workplaces:

• New questions about flexible work and performance evaluations.
• Expanded reporting on sexual harassment and discrimination policies.
• More detailed reporting for individual business entities within corporate groups.
• Mandatory inclusion of CEO remuneration in pay gap calculations.
• Publication of both median and average (mean) gender pay gaps from 2025 onwards.

These changes aim to encourage transparency, accountability, and progress. However, they also mean organizations must be prepared to explain what the data reveals and the actions they’re taking to address it.

Which change will impact your pay gap in 2025?

One of the most significant updates is the inclusion of CEO salaries in gender pay gap calculations. CEO remuneration is typically much higher than other roles and 78% of private-sector CEOs are male. As a result, this change is expected to widen reported pay gaps for organizations with male CEOs.

💡 Based on current voluntary data submitted to WGEA, this change is projected to result in:

• 70% of employers reporting wider gender pay gaps.
• 20% of employers reporting narrower gender pay gaps.

This isn’t just a numbers game — it’s an opportunity to highlight the structural disparities in leadership representation and encourage proactive steps toward addressing inequities at all levels of the organization.

Median vs. Average gender pay gaps

Until 2025, WGEA has only published the median gender pay gap. Starting next year, both the median and average (mean) pay gaps will be included in public reporting.

• Median Gender Pay Gap: The middle value of all salaries ranked from lowest to highest. Median calculations are less affected by outliers, such as high CEO salaries, and provide a more balanced view of pay equity across the broader workforce.
• Average (Mean) Gender Pay Gap: The total sum of all salaries divided by the number of employees. High executive-level salaries, particularly in male-dominated leadership teams, can significantly affect this figure.

Why this matters:
Including both metrics will provide a fuller, more nuanced picture of pay inequality. The average gap highlights disparities at the leadership level, while the median ensures focus on equity across the broader workforce. Together, these measures allow organizations to identify gaps in representation and pay—and address them effectively.

Addressing your increased gender pay gap in 2025

If your organization has a significant gender pay gap, the key to navigating these changes is to demonstrate a clear commitment to addressing it.

💡 More than half of respondents to our What Women Want survey said they would still apply for a role at a company with a poor pay gap—if they could see the company was taking action to improve it.

Here’s how to get started:

1. Understand the cause of your gender pay gap

Start by analyzing your company’s pay data to identify gender disparities. This analysis should highlight gaps in leadership representation and other factors contributing to the pay gap, giving you a clear view of where and how to act.

2. Create a clear action plan

Use your analysis to develop a clear, actionable plan that addresses both immediate and long-term steps to reduce your gender pay gap.

💡 Top tip: Share your action plan with employees and stakeholders to gain buy-in, demonstrate your commitment, and build trust.

3. Prepare a public statement

Craft and release a clear, honest impact statement using your analysis and action plan. Provide context for your data and explain the actions your organization is taking to close the gap.

💡 According to WGEA, only 20% of employers uploaded an employer statement for their 2024 gender pay gap report. This is your opportunity to stand out and demonstrate leadership.

Important note: This isn’t about excusing your gender pay gap—it’s about explaining it. Show that you’ve taken the time to understand the issues and are actively working toward equity.

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