Indigenous Australians Earn 84c For Every $1
New data reveals a 15.9% hourly pay gap between Indigenous and non-Indigenous workers, resulting in $15,040 less per year for Indigenous workers
Indigenous workers in Australia earn 84 cents for every $1 earned by non-Indigenous people, with a 15.9% hourly pay gap. This disparity results in Indigenous workers earning around $15,040 less per year than all Australian workers.
The pay gap is more pronounced for Indigenous women, with a 21% difference in average hourly pay compared to all men. Aboriginal and Torres Strait Islander women face compounding pay disadvantages, including lower hourly wages, less representation in higher-paying jobs, and fewer working hours.
The pay gap between Aboriginal and Torres Strait Islander men and all men is 18.4%, exceeding the 12.5% gap between Aboriginal and Torres Strait Islander women and all women. This suggests that Indigenous identity is a significant source of the pay gap.
In higher-skilled occupations, the pay gap is particularly pronounced. Aboriginal and Torres Strait Islander professionals earn $83,847 a year on average, compared to $106,911 for professionals overall. Indigenous professionals, including tech sales professionals and pharmacists, earn about 80 cents for every $1 earned by all workers on an average hourly basis.
## What it means The data, covering over 80% of both Indigenous and non-Indigenous workers in 2022-23, highlights the need to address the pay gap. The disparity is equivalent to working almost two months of the year for free or losing more than all employer compulsory superannuation contributions. Closing the pay gap would require addressing the underlying factors, including lower hourly wages, less representation in higher-paying jobs, and fewer working hours.
## Why it matters The pay gap has significant implications for Indigenous workers and their families. It affects their ability to access better education, healthcare, and economic opportunities. Addressing the pay gap is crucial to promoting economic equality and improving the overall well-being of Indigenous Australians. By understanding the extent of the pay gap and its causes, policymakers and employers can develop targeted strategies to close the gap and promote greater economic equality.
The Towards Indigenous Pay Parity study analyzed data on about 10 million Australian workers, providing insights into the occupations and industries where the pay gap is most pronounced. The study's findings highlight the need for a comprehensive approach to addressing the pay gap, including increasing representation in higher-paying jobs, improving working hours, and promoting greater economic equality.
