The gender pay gap in the Public Service has continued to decrease. As at 30 June 2020, the average salary was $89,900 for men and $81,200 for women, up 3.5% for men since 30 June 2019 and up 4.5% for women. This means the gender pay gap decreased by 0.9 percentage points to 9.6%. This is the lowest gender pay gap in the Public Service since measurement began in 2000.
Contributing to the decline in the gender pay gap is the record high female share of senior leaders, exceeding half for the first time, at 53.2%. The gender pay gap for senior leaders is 5.7% for 2020, up from 4.7% in 2019, but still considerably lower than any previous year (next lowest was 7.4% in 2018).
Analysis of the HRC data has generated the following insights:
- Pay gaps are lower when people in more equivalent roles are being compared. For this reason, gender pay gaps tend to be lower for specific occupations than the overall gap. For example, The gender pay gap for senior leaders is 5.7% for 2020. This is lower than for all management roles (8.4%) and the Public Service as a whole (9.6%).
- Age groups under 40 years have gender pay gaps of under 5%. Gender pay gaps increase for older age groups peaking at 13.6% for those aged 55 to 59 years of age.
- Gender pay gaps vary greatly among departments, ranging from 32.3% in the Ministry of Defence to -2.9% in Oranga Tamariki (a negative gender pay gap means women were paid more than men). The Ministry of Defence’s gender pay gap has been decreasing substantially in recent years (it was 46.4% in 2016).
- Differences in the gender pay gap across departments are generally driven by the extent to which departments have gender imbalances in their workforces. For example, some traditionally male fields (such as IT or procurement) tend to be highly-paid whereas lower paid clerical and contact centre roles tend to be female dominated. This occupational segregation - women being more likely to be working in lower-paid occupations - is a key driver of the gender pay gap for many departments.
- Even within the same occupational groups there are compositional differences between the genders in terms of seniority and experience. For example, women make up 59% of all analyst, senior analyst and other policy roles in the Public Service in 2020, but only 48% of principal advisor positions.