Pay gap reporting can help reduce gender and ethnic pay gaps and address inequities in the workplace.

The gender pay gap in Aotearoa New Zealand has fluctuated over the past decade and is currently sitting at 8.6%.

Women, Māori, Pacific people, and people from other ethnic communities are more likely to experience pay gaps, and higher rates of unemployment and underemployment, when compared to European men.

We know that many businesses across New Zealand are committed to closing their pay gaps and are already taking action to measure and report on them. Agencies in the public sector have reported on their pay gaps through Kia Toipoto — Public Service Pay Gaps Action Plan since 2018.

On 13 June 2024, the Government announced the development of a voluntary calculation tool. The Ministry for Women will work with business leaders on an approach to voluntary gender pay gap reporting to support organisations measure, understand, share, and take action to close the gender pay gap.  

Benefits of pay gap reporting: 

  • Potential discriminatory pay practices and pay gaps can be seen and addressed directly.
  • Employers can proactively investigate, report on, and address pay gaps in their organisation and at a wider-industry and/or system level.
  • Employers are incentivised to address employment inequities and make the changes to their policies and practices needed to keep inequities from reoccurring.
  • Employees are empowered to make more informed decisions on their employment and negotiate their pay.
  • Morale and motivation within an organisation can improve.

You can also find information on what employers can do to close the gender pay gap in their organisation by using our What’s My Gender Pay Gap? tool.

We have conducted research into how pay transparency works internationally. Country Case Studies on Pay Transparency (2022) looks at Australia, Denmark, France, Germany, Iceland, and the United Kingdom. The research shows that most jurisdictions similar to New Zealand have addressed pay transparency and pay equity in some form with the overall aim of closing the gender pay gap and combatting workplace gender inequity.