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Indicator 3- Gender pay gap

Measure 3.1 Mean total remuneration gender pay gap by occupation group (critical)

What does this measure show?This measure uses workforce data to compare the ‘mean’ or average total remuneration for men (i.e. including base salary, plus all additional payments, including superannuation), with the average total remuneration for women and people of self-described gender within a particular occupation group (e.g. technicians and trades workers, community and personal service workers).
How is it calculated?
  • In your employee dataset, use the ‘gender’, ‘total remuneration’ and ‘occupation code’ data provided for all employees.
  • For all employees:
    • calculate the average base salary for men, women, and people of self-described gender.
    • to find the pay gap for women in dollars, subtract the average base salary for women from the average base salary for men.
    • to show this gap as a percentage, divide this dollar gap by the average base salary for men, and then multiply by 100.
  • For each occupation group:
    • calculate the average total remuneration for men, women, and people of self-described gender.
    • to find the pay gap for women in dollars, subtract the average total remuneration for women from the average total remuneration for men.
    • to show this gap as a percentage, divide this dollar gap by the average total remuneration for men, and then multiply by 100.
  • Compare the percentage pay gap for all employees with the percentage pay gap for each occupation group.
  • If any occupation group has more than 10 employees who self-describe their gender, you can repeat these calculations to find the gender pay gaps for people of self-described gender.
  • A pay gap that is positive (i.e. >0) means that men earn more than women (or people of self-described gender).
  • A pay gap that is negative (i.e. <0) means that women (or people of self-described gender) earn more than men.

Here’s an example calculation:

  • In 2024, the largest gender pay gap by occupation in Australia is in the Construction Industry.
  • The average total remuneration for men in ‘Construction’ is $121,000 a year. For women, it is $82,000 a year.
  • Therefore, the pay gap for women is $39,000 (= $121,000 — $82,000).
  • As a percentage of men’s pay, women have a total remuneration gender pay gap of 32% ($39,000 ÷ $121,000 x 100).
Why is this important?

In 2021 and 2023, every Victorian public sector occupation had a pay gap in favour of men - including occupations that were majority-women. These gaps often reflect outdated gender stereotypes or assumptions about what types of work are ‘suitable’ for women or men. When women are over-represented in lower-paid roles, or under-represented in leadership, it’s often due to bias – not capability.

Looking at your organisation’s gender pay gaps by occupation can give you important clues. Use this information to guide where you start when promoting greater gender equality and addressing disadvantage.

Additional questions

Use these prompts to consider this measure alongside other relevant data.

Compare the pay gap for each occupation with the overall pay gap in your organisation.

Are there occupations where the pay gap is particularly large?

Compare the different types of pay gap calculations to help identify the root cause.

Is the pay gap larger when you look at base salary or total remuneration?

This can show if things like overtime, bonuses, or special allowances are mostly going to one gender.

Is the pay gap larger when you look at the mean (average) or the median (middle value)?

The mean can be affected by a few very high or low salaries.

A large mean gap may mean that a small number of people of a certain gender are earning much more or much less than others.

If you have the data, look at how gender intersects with other factors, like cultural identity or disability status.

Do you see different trends for groups facing intersecting inequalities?

Other measures to consider

Consider this measure alongside:

  • Measure 1.1: Gender composition of the duty holder organisation
  • Measure 1.3: Gender composition of senior leaders in the duty holder organisation
  • Measure 3.2: Mean total remuneration senior leader gender pay gap
  • Measure 3.3: Mean base salary gender pay gap
  • Measure 3.4: Median total remuneration gender pay gap
  • Measure 3.5: Median base salary gender pay gap.

Measure 3.2 Mean total remuneration senior leader gender pay gap (critical)

What does this measure show?This measure uses workforce data to compare the ‘mean’ or average total remuneration for men in senior leadership with the average total remuneration for women and people of self-described gender in senior leadership.
How is it calculated?
  • In your employee dataset, use the ‘gender’, ‘total remuneration’ and ‘employment type’ data provided for all employees.
  • For the senior leader employment type:
    • calculate the average total remuneration for men, women, and people of self-described gender
    • to find the pay gap for women senior leaders in dollars, subtract the average total remuneration for women from the average total remuneration for men
    • to show this gap as a percentage, divide this dollar gap by the average total remuneration of men and then multiply by 100.
  • If your senior leaders include more than 10 employees who self-describe their gender, you can repeat these calculations to find the gender pay gap for people of self-described gender.
Why is this important?

A gender pay gap in senior leadership often points to deeper issues. This might include bias in recruitment, limited promotion pathways, or outdated ideas about who belongs in top roles.

Women are still less likely to reach senior positions, and when they do, they’re often paid less. Even in workplaces covered by Awards or Enterprise Agreements, gender pay gaps often emerge through bonuses or allowances. Men are also more likely to benefit from salary negotiations. This is not because women aren’t capable negotiators. It’s because of persistent biases that reward assertiveness differently depending on who’s asking.

Closing the total remuneration gap in senior leadership is a key indicator of your commitment to gender equality and helps attract and retain top talent.

Additional questions

Use these prompts to consider this measure alongside other relevant data.

Look at the pay gap for senior leaders and compare it to the overall mean total remuneration pay gap in your organisation.

Is the pay gap larger among senior leaders than in the broader workforce?

Consider using your audit data to calculate the mean base salary pay gap for senior leaders as well.

Is the gender pay gap bigger for base salary or total remuneration?

This can help you understand whether additional payments, like bonuses or special allowances, are benefiting one gender more than others.

If you have the data, look at how gender intersects with other factors, like cultural identity or disability status.

Do you see different trends for groups facing intersecting inequalities?

Other measures to consider

Consider this measure alongside:

  • Measure 1.1: Gender composition of the duty holder organisation
  • Measure 1.3: Gender composition of senior leaders in the duty holder organisation
  • Measure 3.1: Mean total remuneration gender pay gap by occupation group
  • Measure 3.3: Mean base salary gender pay gap
  • Measure 3.4: Median total remuneration gender pay gap
  • Measure 3.5: Median base salary gender pay gap
  • Measure 5.2 Gender composition of employees who were promoted.

Measure 3.3 Mean base salary gender pay gap (supplementary)

What does this measure show?This measure uses workforce data to compare the ‘mean’ or average base salary for men with average base salary for women and people of self-described gender.
How is it calculated?
  • In your employee dataset, use the ‘gender’, and ‘base salary’ data provided for all employees.
  • Calculate the average base salary for men, women, and people of self-described gender.
  • To find the pay gap for women in dollars, subtract the average base salary for women from the average base salary for men.
  • To show this gap as a percentage, divide this dollar gap by the average base salary for men and then multiply by 100.
  • If your workforce includes more than 10 employees who self-describe their gender, you can repeat these calculations to find the gender pay gap for people of self-described gender.
Why is this important?

A gap in the mean base salary is about more than people of different genders being paid differently for the same, or similar, roles (although this is still common).

It reflects the combined impact of gender bias and disadvantage over time. This can include:

  • unequal access to promotions or high-value projects
  • limits to flexible work at senior levels, or
  • the additional load women often carry in balancing work and unpaid care.

These factors create long-term pay gaps that limit women’s financial security and career progression.

Addressing this gap visibly and transparently is about fairness, and it’s also good for business. That's because pay equity builds trust, boosts morale, and helps attract and keep diverse talent.

Tracking this measure over time, alongside pay gaps by occupation (Measure 3.1) and among senior leaders (Measure 3.2), helps uncover where deeper issues may exist, and where change is most needed.

Additional questions

Use these prompts to consider this measure alongside other relevant data.

Use the ‘level’ classification in your audit data to calculate the pay gap at different levels of your organisation. You might consider grouping levels together to get a broader picture.

How do pay gaps differ between classification levels?

If you have the data, look at how gender intersects with other factors, like cultural identity or disability status.

Do you see different trends for groups facing intersecting inequalities?

See measure 3.1 for further advice that also applies to this measure.

Other measures to consider

Consider this measure alongside:

  • Measure 1.1: Gender composition of the duty holder organisation
  • Measure 3.1: Mean total remuneration gender pay gap by occupation group
  • Measure 3.2: Mean total remuneration senior leader gender pay gap
  • Measure 3.4: Median total remuneration gender pay gap
  • Measure 3.5: Median base salary gender pay gap
  • Measure 5.2 Gender composition of employees who were promoted.

Measure 3.4 Median total remuneration gender pay gap (supplementary)

What does this measure show?This measure uses workforce data to compare the median (i.e. the middle value) total remuneration for men with the median remuneration for women and people of self-described gender.
How is it calculated?
  • In your employee dataset, use the ‘gender’, and ‘total remuneration’ data provided for all employees.
  • Calculate the median total remuneration for men, women, and people of self-described gender.
  • To find the pay gap for women in dollars, subtract the median total remuneration for women from the median total remuneration for men.
  • To show this gap as a percentage, divide this dollar gap by the median total remuneration for men and then multiply by 100.
  • If your workforce includes more than 10 employees who self-describe their gender, you can repeat these calculations to find the gender pay gap for people of self-described gender.
Why is this important?

Even if base salaries appear equal, gaps often appear in the ‘extras’ that significantly affect overall earnings. This measure gives you a fuller picture of pay equity by looking at total remuneration. That is, base salary plus overtime pay, bonuses, allowances, and other financial benefits including superannuation.

Bonuses and overtime often appear neutral. However, who gets access to them can depend on role design, manager discretion, or assumptions around availability to ‘go the extra mile’.

If your median total remuneration gap is a lot larger than your median base salary gap (Measure 3.5), then this might indicate gendered barriers. Use these two measures together to track pay equity more accurately. This can help you address systemic issues and take action. For example, you might find that some employees don't have equal access to additional remuneration.

Additional questions

This measure is best understood as part of a broader analysis.

See measures 3.1 and 3.3 for advice that also applies to this measure.

Other measures to consider

Consider this measure alongside:

  • Measure 1.1: Gender composition of the duty holder organisation
  • Measure 3.1: Mean total remuneration gender pay gap by occupation group
  • Measure 3.2: Mean total remuneration senior leader gender pay gap
  • Measure 3.3 Mean base salary gender pay gap
  • Measure 3.5: Median base salary gender pay gap
  • Measure 5.2 Gender composition of employees who were promoted.

Measure 3.5 Median base salary gender pay gap (supplementary)

What does this measure show?This measure uses workforce data to compare the median (i.e. the middle value) base salary for men with the median base salary for women and people of self-described gender.
How is it calculated?
  • In your employee dataset, use the ‘gender and ‘base salary data provided for all employees.
  • Calculate the median base salary for men, women, and people of self-described gender.
  • To find the gender pay gap for women in dollars, subtract the median base salary for women from the median base salary for men
  • To show this gap as a percentage, divide this dollar gap by the median base salary for men and then multiply by 100.
  • If your workforce includes more than 10 employees who self-describe their gender, you can repeat these calculations to find the gender pay gap for people of self-described gender.
Why is this important?

This measure looks at the median base salary (i.e. the middle point in your salary data), which gives a useful picture of what a ‘typical’ employee earns. Unlike the mean (average), the median isn’t distorted by the highest and the lowest salaries. That makes it especially helpful for understanding pay equity in organisations with a wide range of salaries, or a small number of very high (or low) earners.

Used together with the mean base salary gender pay gap (Measure 3.3), this measure helps you get a more complete view of pay equity in your organisation.

Additional questions

This measure is best understood as part of a broader analysis.

See measures 3.1 and 3.3 for advice that also applies to this measure.

Other measures to consider

Consider this measure alongside:

  • Measure 1.1: Gender composition of the duty holder organisation
  • Measure 3.1: Mean total remuneration gender pay gap by occupation group
  • Measure 3.2: Mean total remuneration senior leader gender pay gap
  • Measure 3.3 Mean base salary gender pay gap
  • Measure 3.4: Median total remuneration gender pay gap
  • Measure 5.2 Gender composition of employees who were promoted.

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