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Gender pay gap: understand the new reporting rules

WGEA will publish the first set of private sector employer gender pay gaps on 27 February. Employers should view it as a catalyst for progress and change.

14 Feb 2024

Catherine Ngo

Content writer, presenter and podcaster

In case you missed it, the Workplace Gender Equality Amendment (Closing the Gender Pay Gap) Bill 2023 was passed in March 2023. The bill requires some employers to share their organisation's gender pay gap data publicly.

The reforms apply to organisations already required to report annually to WGEA. Under the Act, this includes private sector employers and Commonwealth public sector organisations with 100 or more employees.

From 27 February 2024, the Workplace Gender Equality Agency (WGEA) will make private sector employer gender pay gap data publicly available via the WGEA's website. Public sector employers will be subject to the exact requirements around late 2024 or early 2025.

What are the key changes for employers?

Collection of additional information

There is now greater emphasis on collecting more detailed information to better understand the true state of gender inequality across Australian workplaces. From 1 April 2024, employers will be required to report workforce data on:

employee age (year of birth)
primary workplace location
CEO, Head of Business and Casual Manager remuneration.

Note: As with all remuneration data collected by WGEA, individual CEO pay information will be confidential.

Reporting on sexual harassment, harassment on the grounds of sex or discrimination

These reforms expand reporting requirements on prevention and response to sexual harassment, harassment on the grounds of sex, or discrimination in the workplace.

These questions were voluntary in 2023 but will be mandatory from 2024.

The provisions set out in any policy/strategy, including accountabilities for: preventing and responding; the provision of training, its frequency, and content; the disclosure processes and management of disclosures; leadership statements or communication to demonstrate commitment to prevention and response
information about sexual harassment risk management
information about the prevalence data organisations currently collect
support available for staff.

Benchmark report to the governing body

The new legislation requires employers to provide their WGEA Executive Summary and Industry Benchmark Report to their Board.

The executive summary contains the key findings from your submission to the WGEA's annual Gender Equality Reporting. It will include details of your gender pay gap, gender composition, average remuneration per pay quartile, and your organisation's critical findings under each gender equality indicator. The Industry Benchmark Report compares your results to other organisations within the 'Industry Comparison Group'.

CEOs must declare they complied with the legislative requirement to provide reports to the governing body in the 2023 – 2024 Gender Equality Reporting.

Gender Equality Indicator policies for large organisations

From 2024, large organisations (500 or more employees) will be required to have policies or strategies for each of the six gender equality indicators.

The six indicators are:

Gender composition of the workforce
Gender composition of governing bodies
Equal remuneration between women and men
Availability and utility of employment terms, flexible working arrangements, support for family and carer's responsibilities.
Consultation with employees on gender equality in the workplace.
Sexual harassment is harassment on the grounds of sex or discrimination.

How should HR prepare for the changes?

As the custodians of culture, HR can take proactive steps to prevent any negative fallout from the publication of gender pay gaps. Employers should lean into the transparency mandated by the Bill rather than resist it and perceive it as a threat.

Employers should view the publication as a catalyst for progress and change and develop informed and targeted strategies to address disparities by analysing trends contributing to pay inequity — ultimately, the reform's intent.

To promote gender equality in the workplace, employers should proactively communicate with employees about the publication of the gender pay gap and highlight its key findings and ideas on what is driving it.

Addressing the 'elephant in the room', i.e. the pay gap and sharing published data, demonstrates your commitment to gender equality, even if it involves confronting the issue directly. Transparency fosters trust when accompanied by accountability. Remaining silent may lead to cynicism and discontent.

If significant disparities are revealed, communicate how the organisation plans to approach and close the gap and address any potential concerns. Provide legitimate reasons and context behind the data.

While acknowledging potential concerns, balance the communication by emphasising positive trends indicating progress in eliminating pay gaps. Demonstrating a trajectory of improvement shows your organisation is committed to accelerating change.