The right numbers

Most conversations about pay equity still focus on one thing: base salary. 

But drawing on data from nearly 300,000 employees across New Zealand, the pattern is consistent. If you only look at salary, you are only seeing part of the story. The moment you widen the lens to total remuneration, the gap becomes obvious, and wider.

The gap doesn’t disappear - it expands

Start with base salary, then add benefits. Then look at total income. At each step, our analysis shows that the gap increases. And the bigger the role, the bigger the difference. It is not just about what people are paid, but how they are rewarded overall.

Men, on balance, receive:

• more incentives and bonuses

• higher-value benefits. 

• more cars, car allowances, car parking.

Individually, these might seem like small differences. Together, they add up.

There is progress - but it is not a straight line

Our data analysis shows that there has been positive movement but access to benefits and incentives is still uneven.

The overall pay gap in New Zealand reduced in 2024 and that was reflected in a narrowing of the differences in incentives and bonus payments too. In 2022, the gap in incentive payments sat at just over 57%. By 2024, it had dropped to just over 53%. This drop is tempered by the fact that overall a higher proportion of men received a bonus (in 2024, 56% of men received a bonus. For women, it was 48%.)

Long term implications of the gender pay gap

Pay gaps do not just show up in today’s income but follow people into retirement. The scale of the challenge for retirement savings is large. Te Ara Ahunga Ora / Retirement Commission reported a 20% retirement savings gap in 2022, rising to 25% in 2023 and 2025, and reaching 37% for those aged 56 to 65. 

When you look at KiwiSaver directly - you are looking at data directly tied to salary. If there is a gap in pay, there is a gap in savings. The data reflects that. And there is. There is a persistent median KiwiSaver gap in favour of men: it has reduced from 17.5% in 2021 to 13.4% in 2024, but it has not gone away.

The “Review of Retirement Income Policies 2025” from the Retirement Commissioner notes that while there are six life stages that affect retirement income (including parenthood), pay inequity at work contributes significantly to the income gap that women face in retirement. 

But it’s not all bad news! We were pleased to see in our latest analysis that there are some positives in the KiwiSaver data. 

Firstly the public sector tends to have a smaller gender pay gap than the private sector. The same applies to KiwiSaver contributions, with past access to more generous superannuation schemes possibly part of the reason.

Secondly the Chief Executive gap is closing. The latest data shows that among chief executives in large organisations, there is now a KiwiSaver gap in favour of women. This has been driven by higher employer contributions, often above the standard 3%.

This is a great result, showing the positive impact of out-of-the-ordinary practices. And as more women move into senior roles, that gap will reduce.

The full story

The gender pay gap is improving in New Zealand, that is true. But it is also incomplete. If we keep focusing on base salary, we will keep underestimating the problem. Total remuneration tells a different story. Incentives, benefits, and retirement contributions all matter. And right now, those still tilt in favour of men.

We need to encourage and enable women to move into more senior positions, not just because it will reduce gender pay gaps, but because a workplace dedicated to diversity and equality will be a better place to work. And a better place to work, will work better.

Lyn Brieseman is a principal consultant at Strategic Pay. The organisation has been helping companies set fair and competitive pay packages since 1994, analysing and collecting data on wages and salary in New Zealand.