The Fair Work Commission’s wage review is a nice first step, but the fight is far from over

The Fair Work Commission’s wage review into women-dominated industries resulting in a pay rise is a welcome change – but the fight has just begun, writes Sabrina Scherm.

This move to remedy “gender-based undervaluation” marks a small step on the path to closing the gender pay gap once and for all. But this fight is far from over, with the latest number painting a different picture – our national gender pay gap actually increased, from 21.7 per cent to 21.8 per cent.

Women don’t seem to be convinced about the law working either. According to new research from HiBob, just over half (51 per cent) of women say their organisation is actively working to address the gender pay gap, while 37 per cent believe their employer will never prioritise closing it. This is up from 31 per cent last year, signalling that transparency without accountability isn’t enough.

If Australia wants to close the gender pay gap, we need more than just public records and one-off industry wage rises that could fall off the radar at a moment’s notice. We need an accelerated change from the ground up. So, what’s missing, and what else should be done to get there?

Where Australia is falling behind and how to fix it

Currently, the law only applies to businesses with a hundred or more employees. That leaves out 97 per cent of Australian companies, which are classified as small businesses. This is a major gap in the legislation, considering small businesses employ nearly half the workforce. While expanding the law would add compliance requirements for small businesses, closing the gender pay gap is too important an issue to ignore if we want to reach true equity.

If the law were expanded to include companies of all sizes, Australia would be in a much stronger position to close the pay gap. Without a more comprehensive approach, millions of workers are left out of the conversation entirely, with numerous businesses not being held accountable. Who knows how wide the gap really is when so many businesses aren’t required to report?

While base salaries are incredibly important to combat the pay gap, fully resolving it (or coming close to it) is also about who moves up the ladder. Our research revealed another worrying trend – only a quarter of women were promoted in 2024 compared to 41 per cent of men.

Worse still, the percentage of women being promoted declined – down from 31 per cent in 2023! If men continue to dominate higher-paying senior positions, the gender pay gap will remain stubbornly wide. Employers need to conduct internal audits of their promotion processes and introduce fairer career progression policies, stat. Without structural changes, women will keep hitting the same barriers year after year.

The clock is ticking: Will 2026 be any different?

However, one positive trend that did come out of research is that women’s confidence is rising, with 69 per cent saying they would reject a job offer from a company with a significant gender pay gap. Will confidence alone fix the problem, though?

The reality is, transparency without consequences won’t drive real change. Without stronger enforcement, broader inclusion of small and mid-sized businesses, and a fundamental shift in how promotions are handled, the gender pay gap will take even longer than the currently estimated 26 years to resolve.

Employers and policymakers need to step up now – not in another year, not in another decade. The solutions are clear, the data is undeniable, and the time for excuses should be long over. The only question that remains is: how much longer will women have to wait for real equality, or have the patience to?

Sabrina Scherm is the customer success manager at HiBob.

Kace O'Neill

Kace O'Neill is a Graduate Journalist for HR Leader. Kace studied Media Communications and Maori studies at the University of Otago, he has a passion for sports and storytelling.