New Zealand mandates gender pay gap reporting
The stride towards pay equity in New Zealand has gained momentum with the government’s announcement of mandatory pay transparency measures, which are aimed at nurturing a more just and balanced workforce.
The new regulations will require approximately 900 organisations with workforces of over 250 employees to publicly unveil their gender gap disparities. This obligation will be extended to cover organisations with over 100 employees at a later stage.
Jan Tinetti, New Zealand’s Minister for Women, said, “The reality is that women have different experiences in the workplace than men, and change is needed. Requiring organisations to publish their gender pay gap will encourage them to address the drivers of those gaps and increase transparency for employees.”
This move brings New Zealand in line with global benchmarks, echoing the practices adopted by countries such as Australia, Canada, and the UK. Priyanca Radhakrishnan, New Zealand’s Associate Minister for Workplace Relations and Safety, outlined a phased approach, beginning with voluntary reporting and transitioning to mandatory reporting following review.
Beyond gender, the government also seeks to address ethnic pay discrepancies. Acknowledging the challenges faced by Māori, Pacific peoples, and other ethnic groups, the government aims to include ethnicity in the reporting framework. Consultation will be instrumental in crafting the legislative structure, ensuring that diverse perspectives shape the reporting system’s final design.
Radhakrishnan concluded, “We know that many organisations are leading the charge and are already reporting their gender pay gap. Around 200 organisations including Spark, Air New Zealand, My Food Bag, and Sharesies are already or committed to voluntarily reporting their gender pay gap.”
“We’ll be engaging with them to learn from their experience and establish a universal model for reporting so there is consistency and guidance for employers and employees.”