Starting in early 2024, employers with over 100 employees in Australia must publish their gender pay gaps. This follows the approval of the Workplace Gender Equality Amendment (Closing the Gender Pay Gap) Bill 2023 by Parliament last week.
Under the newly passed law, gender pay gaps will be published on the Workplace Gender Equality Agency (WGEA) website, which is expected to impact more than four and a half million Australian employees. This move is aimed at driving transparency and action towards closing the gender pay gap, according to Minister for Women Katy Gallagher. Under the new law, gender pay gaps will be published on the Workplace Gender Equality Agency (WGEA) website, impacting more than 4.5 million Australian employees. The new law is expected to lead to more gender pay gap reductions and help employers develop strategies to close their gaps.
WGEA believe that publishing gender pay gaps will allow employers to show improvement over time. The legislative reforms also offer employers the option to provide a statement that gives context to their gender pay gap results and outlines their action plans.
While projections estimate that another 26 years will be needed to close the gender pay gap, WGEA warned that women had waited long enough for the pay gap to close. WGEA vowed to actively support all reporting employers in making progress on their gender pay gaps as the law gets implemented.
What Businesses need to do:
While it will take several months for the legislation to become effective, businesses with over 100 employees must publish their gender pay gaps on the Workplace Gender Equality Agency (WGEA) website. Here are some steps that companies can take to ensure compliance with the upcoming law:
Review your current pay practices: Businesses will need to review their current pay practices to identify any gender pay gaps that exist. They can use the data to develop strategies for closing the gaps.
Prepare to report on gender pay gaps: Businesses will need to prepare to report their gender pay gaps to the WGEA. They should ensure that they have accurate data and that they understand how to calculate their gender pay gaps according to the WGEA guidelines.
Develop a plan to address gender pay gaps: Businesses should develop a plan to address any gender pay gaps they identify. This plan should outline specific actions that they will take to reduce or eliminate the gaps.
Provide a statement that gives context to your gender pay gap results: Employers can provide a statement that provides context to their gender pay gap results and outlines their action plans. This statement should include information about the business's pay practices, any factors that contribute to the gender pay gap, and specific actions that the company will take to address the gap.
Engage with employees: Businesses should engage with their employees about their gender pay gap results and their plans to address it. They can use this feedback to develop more effective strategies for closing the gap.
Seek support from the WGEA: Businesses can seek support from the WGEA in making progress on their gender pay gaps. The WGEA provides various resources and tools to help businesses reduce gender pay gaps and improve gender equality in the workplace.
By taking these steps, businesses can ensure compliance with the new legislation and demonstrate their commitment to closing the gender pay gap. They can also improve employee engagement and attract top talent by demonstrating a commitment to gender equality.
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