Australian insurance sector suffers huge gender pay gap: Study

Study reveals significant difference between pay for male and female workers

Australian insurance sector suffers huge gender pay gap: Study

Insurance News

By Mina Martin

The financial and insurance sector experience the largest full-time gender pay gap in Australia, according to a study commissioned by Bankwest Curtin Economics Centre (BCEC) and the Workplace Gender Equality Agency (WGEA).

The study, entitled Gender Equity Insights 2017: Inside Australia’s Gender Pay Gap, revealed that top-tier female managers in Australian organisations earn on average $93,000, or 26.5% less each year compared to their male counterparts.

The study found that the financial and insurance services sector were among the industries in the country with the largest full-time gender pay gap - with women earning on average around $30,000, or 26%, less each year in base salary than men in the same industry, Independent Financial Adviser reported.

“This gap increases to more than $52,000, or 33%, when taking into account additional remuneration, including superannuation, bonuses, and other discretionary pay,” the report said.

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“Not only do female-dominated organisations tend to be lower paid, but this analysis shows that in workplaces with heavily female-dominated management teams there are large gender pay gaps in favour of men,” said Rebecca Cassells, co-author of the report.

“It seems that where the men are few, they are more highly valued,” she said.

The report also revealed that companies that promote greater gender equity in senior leadership roles also drive improved gender pay outcomes.

Professor Alan Duncan, report co-author and BCEC director, said: “Organisations that increased the share of women in executive leadership roles by more than 10% between 2015 and 2016 recorded a reduction in the organisation-wide gender pay gap of 3% over the course of a single year.”

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