Companies to disclose salary disparities to address gender inequities in the workplace

The government of New Zealand has unveiled its intentions to mandate companies to disclose their gender-based salary disparities. The announcement, presented on Friday, was delivered by Jan Tinetti, New Zealand’s Minister for Women, and Priyanca Radhakrishnan, Associate Minister for Workplace Relations and Safety.

As per the ministers’ estimates, approximately 900 establishments employing over 250 staff members might soon be required to publicly reveal their gender pay discrepancies. This scope will subsequently extend to firms with more than 100 employees within four years.

Tinetti emphasised the distinct workplace experiences of women compared to men and stressed the necessity for change. She stated, “The imperative for companies to divulge their gender pay gaps will incentivise them to confront the factors causing these disparities and will enhance transparency for employees.”

Drawing attention to practices in other nations, Tinetti highlighted that countries such as Australia, Canada, and the UK have already implemented protocols for gender pay gap disclosure.

Radhakrishnan clarified that the initiation of pay gap reporting would initially be voluntary, followed by a governmental review after a three-year period to ascertain whether it should become obligatory.

Radhakrishnan also mentioned the government’s commitment to exploring the inclusion of ethnicity in pay gap reporting. She emphasised that ethnic groups like Māori and Pacific peoples often encounter compounded impacts from both gender and ethnic pay gaps. “As we move ahead with our consultation phase, we will deliberate on the integration of ethnicity before formalising the legislation,” she affirmed.