The $1.5 million penalty: Women pay the price for Australia’s gender pay gap

For women in Australia, that gender pay gap widens with age, peaking in the late 50s at a jaw-dropping $53,000 a year.

WGEA’s Ages and Wages report dives into how the gender pay gap evolves across a career and highlights practical steps employers can take to close it.

WGEA CEO Mary Wooldridge cautions that without action, women will continue to shoulder a lifetime financial disadvantage.

“Our report shows how key employer interventions at critical times could reduce the gender pay gap and improve women’s ability to earn and save for retirement,” Wooldridge said.

“It also provides insight into how those same actions can help address men’s concerns including lack of flexibility, long-hours work culture and fair and equal access to parental leave. We’re asking employers to change the story and shape the future. Taking at least one of these actions this year will make your workplace fairer.”

The report draws on data from more than 7,400 employers in 2024, representing over 5.1 million employees across 19 industries.

The patterns are striking. Women entering the workforce in their late teens slightly out-earn men, by $376, a 2% gap in their favour. But by ages 20-24, the gap flips to 1.1% in favour of men ($1,940), and then climbs sharply. Between 55 and 59, women earn 31.4% less than men, almost $53,000 a year.

Age 30 emerges as a critical turning point, when the pay gap accelerates. Factors include scarce part-time manager roles and bonus structures that favour men.

Over a full career from 15 to 67, this gap adds up to an incredible $1.5 million less in earnings for women.

“Closing the gender pay gap also enhances women’s capacity to invest for their retirement, provide for their family, afford housing and have financial independence,” Wooldridge said.

The report outlines clear actions employers can take: offer part-time or job-share manager roles to all employees, price roles by market value instead of past salaries, and set ambitious gender-balance targets of at least 40% women and 40% men in each role.

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