New Zealand Develops Voluntary Tool to Reduce Gender Pay Gap

“Gender pay gaps have impacted women for decades, which is why we need to continue to drive change in New Zealand,” said Acting Minister for Women Louise Upston.

The coalition Government is taking significant steps to address the gender pay gap in New Zealand with the development of a voluntary calculation tool aimed at promoting transparency and equality in the workplace.

“Gender pay gaps have impacted women for decades, which is why we need to continue to drive change in New Zealand,” said Acting Minister for Women Louise Upston.

New Zealand’s gender pay gap currently stands at 8.6% and has hovered around 9% since 2018. Upston emphasized the need for action to address the systemic barriers faced by women that contribute to this persistent disparity.

“Gender pay gaps are complex, and they can be inconsistent when taking into account things like part-time workers and the inclusion of bonus and performance pay,” Upston explained.

The Ministry for Women will collaborate with business leaders to develop an easy-to-use approach to voluntary gender pay gap reporting. This initiative will ensure that all businesses have access to the same measurement components to calculate their pay gaps.

“Partnering with the business community will allow us to build on work they have already done on calculating gender pay gaps. Having a clear and consistent method for doing this is an important step in making it easier for organisations to measure, understand, share, and take action to close their gender pay gaps,” Upston added.

Antonia Watson, Co-Chair of Champions for Change and CEO of ANZ, welcomed the Government’s announcement.

“This is a positive step forward and we have been pleased to support the Ministry's work to date. Measurement and reporting our own gender pay gaps has been an important part of the Champions' progress and we certainly support the initiative to make this more accessible for businesses across Aotearoa," Watson said.

Upston also thanked Global Women and Champions for Change for their efforts in scoping a calculation tool and for supporting the Government’s further development of this framework.

By implementing this voluntary calculation tool, the Government aims to provide businesses with the resources needed to accurately measure and address gender pay disparities, fostering a more equitable workplace for all.