WGEA Pay Gap Equation:
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The WGEA (Workplace Gender Equality Agency) Gender Pay Gap measures the difference between the average earnings of women and men in the workforce, expressed as a percentage of men's earnings. It's a key indicator of gender equality in the workplace.
The calculator uses the WGEA standard equation:
Where:
Explanation: The equation shows what women earn relative to men. A positive percentage indicates men earn more on average, while a negative percentage would indicate women earn more.
Details: Calculating the gender pay gap helps organizations identify inequalities, track progress on gender equity, and meet reporting requirements. It's different from equal pay for equal work.
Tips: Enter the average full-time equivalent earnings for male and female employees in dollars. The calculator will compute the percentage difference according to WGEA methodology.
Q1: What's the difference between pay gap and equal pay?
A: Equal pay means women and men are paid the same for the same work. The pay gap compares overall average earnings regardless of role.
Q2: What is considered a good gender pay gap?
A: WGEA considers 5% or less as a relatively small gap, though zero is the ideal. The national average in Australia is around 13-14%.
Q3: Should bonuses be included?
A: Yes, WGEA calculations should include total remuneration including base salary, bonuses, and other payments.
Q4: How often should pay gaps be calculated?
A: WGEA requires annual reporting, but organizations may monitor more frequently.
Q5: Does this account for part-time workers?
A: The calculation should use full-time equivalent earnings to make valid comparisons.