The government has been investigating ways to close the gender pay gap for more than 60 years.
The Government Service Equal Pay Act 1960 introduced equal pay legislation into the public service, abolishing separate pay rates for men and women performing the same work. The requirements of equal pay were extended to the private sector with the passing of the Equal Pay Act 1972.
The gap persists today but work continues to address it. The Equal Pay Act was amended in 2020 to include a clear, accessible process to raise and work through a pay equity claim. This legislative change made it easier for a pay equity claim to be raised and outlined the processes for progressing pay equity.
The government continues to raise awareness about the drivers of the gender pay gap and works with business and public service leaders to generate more urgency around closing the gap.
Work is underway to reduce the gender pay gap through the introduction of voluntary pay gap reporting. On 13 June 2024, the Government announced the development of a voluntary calculation tool. The Ministry for Women will work with business leaders on an approach to voluntary gender pay gap reporting to support organisations measure, understand, share, and take action to close the gender pay gap.
Eliminating the gender pay gap in the public service
The Ministry has worked with the Public Service Commission over the past few years to reduce gender and ethnic pay gaps in the public sector.
Government agencies and Crown entities are committed to implementing 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.
With concerted effort, the public service gender pay gap has steadily reduced from 12.2% in 2018 to 6.1% (as at 30 June 2024).
However, pay gaps for wāhine Māori, Pacific women, and women from ethnic communities have remained consistently higher than for European women.
The Ministry and Public Service Commission will continue to work together to embed the practices, processes, tools, and guidance for agencies and Crown entities to report on and take steps to address ongoing pay gaps.
We will also continue to monitor the data and trends on pay gaps in the public sector, through the Public Service Commission’s annual workforce data publication.