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World of HR: New Zealand makes new move toward gender pay parity

Some 900 companies may have to report gender pay gaps starting in October.
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Francis Scialabba

less than 3 min read

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It may be 2023, but most countries still struggle with gender pay parity (because we still haven’t made up for thousands of years of patriarchy). Now, one country is taking a major step toward reducing the pay gap for its working women.

Where in the world? New Zealand, the land of sheep, stunning scenery, and rugby, recently announced new legislation that would require businesses to report gender pay gap data. The proposed rules will begin with the roughly 900 businesses that have over 250 employees and then expand to businesses with more than 100 employees over the next four years, should the legislation go into effect.

The country has already seen success reducing the gap in the public sector, where women hold “more than half of top tier senior management roles,” and the pay gap now sits at 7.7%, a record low for the country, CNN reported. However, the future of the legislation will depend on the Labour party staying in power following the nation’s October 14 election.

“The reality is that women have different experiences in the workplace than men, and change is needed. Requiring companies to publish their gender pay gap will encourage them to address the drivers of those gaps and increase transparency for workers,” Jan Tinetti, New Zealand’s minister for women, said, according to CNN.

Satellite view. Countries such as Denmark, Australia, and Ireland have already implemented measures to resolve the gender pay disparities within their borders. Denmark, an early adopter of such efforts, enacted a transparency law in 2006 that so far has helped narrow the gap. Australia passed an update to its 2012 Workplace Gender Equality Act earlier this year to close its 13.3% gap. And Ireland passed the Gender Pay Gap Information Act in 2021. Like New Zealand’s proposal, it requires large businesses to release pay gap reports.

While the US’s pay gap is shrinking, with women now making a record 84 cents for every dollar men make, according to an Axios analysis, the Center for American Progress predicts parity won’t be reached until 2056.

We won’t hold our breath.

Quick-to-read HR news & insights

From recruiting and retention to company culture and the latest in HR tech, HR Brew delivers up-to-date industry news and tips to help HR pros stay nimble in today’s fast-changing business environment.