The latest edition of She’s Price(d)less marks the fifth edition of our ongoing collaboration with Diversity Council Australia (DCA) and the Workplace Gender Equality Agency (WGEA), building on 16 years of shared research.
The evidence in this report shows the hourly gender pay gap is 7.3% in 2023 compared to 6.5% in 2020, driven primarily by two factors:
- Job types between women and men, which account for 37% of the gap.
- Unequal distribution of time spent by women on caregiving, family responsibilities and workforce participation, contributing 26%.
This report supports policymakers and business leaders with evidence-based insights to better understand the key drivers and allow for targeted interventions that go to the heart of what drives the gender pay gap in Australia.
About this report
KPMG recognises that since our last report in 2020, the gender pay gap persists, despite action across the public and private sector to tackle gender pay inequality.
The latest edition of She’s Price(d)less tracks changes in pay gap drivers and finds that industry and occupation segregation, along with workforce participation, remain the largest contributors. It also shows a growing share of the gap is due to additional gender influences, including discrimination and gendered social norms.
While education and other factors can help narrow the gap for women, progress remains unacceptably slow – our new data modelling estimates the pay gap won’t be eliminated until 2054. The evidence outlined in this report is a call to arms for greater effort to accelerate progress towards tackling the glass ceiling phenomenon and addressing inequality across our workplaces.
This edition also introduces breakthrough insights into industry-specific comparisons, and exploratory analysis of intersectional dimensions to understand experiences of economic inequality, the impact of migrant status, place of birth, and language on the gender pay gap. By shining a light on these new insights, we open the door to more targeted action to tackle the gender pay gap where it is most persistent.
The findings in this report highlight critical areas that demand action to help build a fairer, more equitable society. We have a responsibility to our organisations, our people, and the next generation of female leaders to act with courage and commitment. The economic case for closing the gender pay gap is clear. Now is the time to lead meaningful change.
Australia’s hourly gender pay gap
Data from the 2023 HILDA Survey shows that, on average, women in Australia earned $42.26 per hour while men earned $45.57 per hour in 2023, resulting in an hourly wage gap of 7.3%. This represents an increase from a 6.5% gap in 2020. This increase is a departure from the otherwise declining trend in the pay gap since 2017.
The Workplace Gender Equality Agency (WGEA) and Australian Bureau of Statistics (ABS) data suggest a gradual decline in the gender pay gap. There is potential that the 2023 result, derived from the HILDA survey data, may be outlying from the overall decreasing hourly pay gap trend, or may represent a fluctuation in the data used.
| Men | Women | Gap ($) | Gap (%) | |
|---|---|---|---|---|
| 2023 | $45.57 | $42.26 | $3.31 | 7.3% |
| 2020 | $47.05 | $44.00 | $3.05 | 6.5% |
Key drivers of the pay gap in 2023
Our analysis shows that systemic drivers remain the largest contributors to the gender pay gap in 2023.
Two key factors contribute to reducing the gender pay gap
Composition of the gender pay gap
This chart depicts the composition of the gender pay gap by drivers. It is important to note that a decrease in the contribution of one driver to the gender pay gap suggests that the factor’s significance in driving differences in pay has only reduced relative to other factors. It does not necessarily indicate that dynamics have ‘improved’ in that area.
Impact on national earnings
The national gender pay gap is estimated to be equivalent to be earnings of:
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How KPMG can help
Through deep and expanding analysis, KPMG helps organisations with targeted actions to build fairer, more productive workplaces.
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Frequently asked questions
As of 2023, the hourly gender pay gap in Australia is 7.3%, with women earning an average of $42.26 per hour compared to $45.57 per hour for men (adjusted to 2025 dollars).
- Type of job (industrial and occupational segregation) – contributing 37%
- Care, family responsibilities, and workforce participation – contributing 26%
- Additional gender influences – accounting for 55% of the gap
Factors that contribute positively to the wage gap:
- Education levels – contributing 10%
- Other factors – contributing 7% including employment in government or NGO sectors
Based on income growth rate data:
- Using the 10-year average, Australia could eliminate the gender pay gap by 2054.
- Using the 20-year average, Australia could eliminate the gender pay gap by 2094.
The largest gender pay gaps are typically seen in male-dominated industries such as manufacturing, financial services, professional, scientific and technical services.
The key drivers contributing positively to women’s earnings and which are associated with reducing the gender pay gap are education and working in government or NGO sectors. While these factors have a positive influence on closing the gender pay gap, the gap remains in favour of men.