Gender pay gaps occur because the actions taken in a workplace or in society are benefiting one gender more than another. But the impact varies by age, so women earn slightly more than men in their teenage years, but the gap shifts quickly so men earn considerably more until retirement.  Cumulatively, enough to purchase a house.

Understanding how the gender pay gap impacts women and men at different ages can allow employers to take more tailored and effective interventions to ensure workplaces are fair for everyone. With considered analysis and planning, employers can address the drivers of the gender pay gap and ensure more equal outcomes for both men and women.

In 2024 the Workplace Gender Equality Agency collected information for the first time on employee age in the annual Employer Census. The Ages and Wages report offers an insight into the experiences of more than 5.1 million employees across Australia.

This analysis shows the gender pay gap starts early and compounds. Women entering the workforce in their teenage years earn slightly more on average than men of the same age. But by the time they are in their 20s men, on average, begin to earn more. The gender pay gap in favour of men builds as employees hit their 30s. It peaks at almost $53,000 a year when employees are between 55 – 59 years of age and it does not end before retirement.

However, key employer interventions at critical times could reduce the gender pay gap and improve women’s ability to earn and save for retirement, whilst also addressing growing concerns for men about lack of flexibility, long-hours work culture and equal access to parental leave.