Minister out for equal gender pay

AUSTRALIA’S new Minister for Women has indicated she’s open to more reforms to reduce Australia’s gender pay gap in the wake of Iceland becoming the first country in the world to penalise companies that pay men more than women.

At the same time, Telstra and global IT business ThoughtWorks have called on more companies to lift their game so further government intervention won’t be necessary.

Iceland’s move to shrink its 5.7 per cent pay gap came into effect on January 1.

Under the ground-breaking policy, companies with more than 25 staff are required to report their equal pay policies to government to obtain a certification. Any companies that fail to show equal pay face fines.

Minister for Women Kelly O’Dwyer said the government had taken steps to address the gender pay gap but would continue to look at whether further reforms were required.

“It is fair to expect that women are paid the same as their male counterparts if they are doing the same work,” she said.

The Federal Government has already introduced mandatory reporting for employers with 100 staff or more, on the gender composition of their workforce, pay equity between women and men, and conditions such as flexible working arrangements.

Employers with 500 or more staff must also have a formal policy or strategy in place to encourage gender equality.