The gender pay gap is closing three times faster under the current government, a new report has found.
The Australian Council of Trade Unions (ACTU) Minding the Gap report, released on Tuesday (19 November 2025) to mark Equal Pay Day, attributed accelerated progress on closing the pay gap to new work rights and higher wages in sectors like aged care.
Equal pay is yet to be achieved in Australia, but the current gender pay gap of 11.5 per cent is the lowest on record.
Since 2022, the gender pay gap has been closing at a rate of 1.3 per cent per year, compared to 0.4 per cent under successive Coalition governments.
The gap means women still effectively work 42 days for ‘free’ compared to men. This figure is used to determine Equal Pay Day – this year falling on Tuesday, 19 November.
Government reforms closing the gap
The report outlines 20 Albanese Labor Government reforms that have contributed to closing the gender pay gap, including:
- funding wage increases of up to 28.5 per cent for workers in under-valued feminised sectors, like aged care,
- backing higher wages for award workers – 60 per cent of whom are women and
- supporting growth in full-time employment for women through rights to flexible work and improved paid parental leave.
The union movement’s campaign and subsequent Federal Government commitment to fund a 15 per cent pay increase for early childhood education and care workers from December is expected to shrink the gender pay imbalance further.
ACTU President Michele O’Neil said all Australians should be valued and paid for their work, regardless of their gender.
“Yet, sectors with a majority of women workers pay some of the lowest wages despite these workers providing some of the most valuable services to our community, such as caring for our loved ones,” Michele said.
“Whether it’s looking after our kids in early childhood education or caring for our parents and grandparents in aged care…pay rises are life-changing for these workers, and they have gone a long way in closing Australia’s gender pay gap.
“More needs to be done to completely close the gender pay gap and nobody can ignore the fact that women work an extra 42 days a year to earn the same as men,” she said.
Recognising women’s contributions essential
IEU-QNT Assistant Secretary/Treasurer Rebecca Sisson said the gender pay gap is a reflection of how women’s economic contributions are valued.
“It’s important to remember that the gender pay gap is not about women being paid less for the same jobs as men which is, of course, illegal,” Rebecca said.
“The gap is caused by women-dominated industries like education being paid less favourably than other industries, by women being overlooked for leadership roles and by disruptions to women’s careers caused by family and caring responsibilities.
“Eliminating the gender pay gap means appropriately recognising the economic contributions of women, supporting their increased participation in the workforce and overturning generations of stereotypes and perceptions that have seen women paid less.
“Accelerated progress on closing the gender pay gap is something to celebrate – we are moving in the right direction, but there is more work to be done,” she said.
Click here to read a full copy of the Minding the Gap report.
