A long overdue conversation

In New Zealand, pay gap reporting is currently mandatory in parts of the public sector, and some organisations in the private sector choose to measure and report their gender pay gaps, but coverage remains uneven. Internationally, however, there has been a shift toward mandatory pay gap reporting, with 2023 research showing that over half of OECD countries require some form of private sector reporting.

The problem, in plain terms, is that New Zealand's gender pay gap is real and largely unexplained by differences in education, occupation, industry, or hours worked. A significant share of the gap occurs within firms, meaning the answer lies in what happens in boardrooms and payroll systems, not just in occupational choices as some people might assume . This is not a pipeline problem; it is a pay-setting problem.

We’d like to thank Still Minding the Gap, BERL, the Advisory Group, and the Clare Foundation for making this research and evidence base possible. Among the things that the research found were;

1. Compliance costs are low.

The vast majority of firms surveyed reported no significant external costs. Small firms can calculate a headline figure in a matter of hours.

2. When businesses do identify gaps, most act.

Nearly half made salary adjustments. Some commissioned a more thorough pay equity audit in their organisation. Many increased pay transparency and changed their hiring and promotion policies. Others improved their recruitment practices.  Some expanded flexible work and parental leave support. Some increased the focus on leadership development for women .   

In general most firms that recorded a meaningful pay gap took at least one of these actions in response, and many implemented several of these measures in combination.

2/3 of businesses said benefits outweighed cost

Around two-thirds of businesses said the benefits of addressing pay gaps outweighed the costs, with better retention, higher morale, and a stronger reputation for the organisation.

Around 40% of firms believed that their pay gap efforts served as a positive signal to potential hires and made it easier to attract talent.

The economic upside is substantial. A 25% reduction in the pay gap could mean $1,300 more per woman per year and around $18 billion in additional economic output.

Countries with mandatory , public , comparable reporting see measurable reductions in pay gaps.  But requirements must be kept simple. Reporting is a catalyst, not an immediate cure. Organisational commitment matters.

New Zealand has a choice: continue with voluntary piecemeal approaches or take the step that evidence supports, a well-designed, proportionate mandatory reporting regime.

This report equips policymakers, employees, and advocates with the data they need to act with confidence.

The gains from closing the pay gap are not just equity gains; they are economic gains that benefit businesses, families, and the broader New Zealand economy. The next generation of women entering the workforce deserve a labour market that pays them fairly. This research shows we have both the tools and the business case to make that happen.

Addressing pay gaps is about creating fairness and transparency for everyone. It's good for business. It's good for New Zealand.