The gender pay gap calculation tool was launched in November 2024 and was developed for, and with, businesses across Aotearoa New Zealand to support them to understand, measure, report, and take action to close their gender pay gaps.
New Zealand women have been advocating for equal pay, pay equity, and better working conditions for many decades. It has taken a concerted and dedicated effort and partnership between government, business, unions, and individuals to get to our current figure of 8.2% (as at June 2024).
Since 2018, the Ministry has worked with the Public Service Commission to reduce pay gaps in the public sector through Kia Toipoto — Public Service Pay Gaps Action Plan 2021 – 24, the framework for government agencies and Crown entities to publish their annual pay gap data and action plans to address pay gaps in their organisation.
Since the implementation of Kia Toipoto, pay gaps have reduced recently for all groups of women across the public sector and the overall public service pay gap is currently 6.1% (as at 30 June 2024).
However, progress has stalled on closing gender pay gaps in the private sector. Many New Zealand organisations are already committed to closing their gender pay gaps and are taking action to measure and report on them, but the way pay gaps are measured varies.
Over the past few years, the Ministry for Women has worked alongside key partners to develop policy and supports to help close pay gaps in the private sector, with the focus to ultimately close New Zealand’s national gender pay gap.
This led to the Government's announcement in June 2024 about the development of a tool to support organisations measure, understand, share, and take action to close the gender pay gap.
The Ministry began working alongside private sector leaders to develop a gender pay gap toolkit to support New Zealand organisations to measure, understand and take action to close their gender pay gap. Thank you to everyone who contributed to the development of this tool.
The toolkit includes:
- an online calculator to calculate the gender pay gap
- a downloadable workbook to assist organisations to prepare their data and calculate their gender pay gap
- a self-assessment questionnaire that can identify actions an organisation can take to reduce their gender pay gap
- templates and supporting guidance to support organisations to understand, calculate, and report their gender pay gaps.
The core element of the toolkit is a standardised methodology that enables all organisations, regardless of their size or sector, to meaningfully compare pay gap data.
The toolkit has been designed to empower solution-focused conversations that will make a difference over time. It encourages organisations to look beyond the numbers to understand the drivers and implement meaningful change.
It will foster transparency and fairness through allowing employees and job seekers to compare the gender pay gap across potential employers, knowing that there is a common standard.