The average gender pay gap across Australian fashion retail has dropped from 11.7 per cent in the 2023-24 period to 10.5 per cent in the 2024-25 period.
This is slightly higher than the overall retail sector, which hit a total average remuneration wage gap of 9.7 per cent in 2024-25.
This is according to new data from the Workplace Gender Equality Agency (WGEA), covering 10,500 Australian employers today. Fashion's 10.5 per cent result is now nearer to the WGEA’s target range of plus or minus 5 per cent.
The results also show the median total remuneration mid-point in retail is at 3.8 per cent, while for fashion retailing (including footwear and accessories) is at 1.4 per cent.
For those in fashion retail getting paid in the upper quartile (averaging $112,000), 22 per cent are men, while 78 per cent are women. At the lower quartile (averaging $51,000), men make up 16 per cent.
For retail overall, 56 per cent of men make up the upper quartile (averaging $125,000), while 44 per cent are women. At the lower quartile (averaging $50,000), men make up 39 per cent.
While many employers should be celebrating progress, WGEA CEO Mary Wooldridge said there is more work to do to ensure Australian workplaces are truly gender-equal. More than 50 per cent of employers have a gender pay gap larger than 11.2 per cent in favour of men.
Employers in high-paying and men-dominated industries were more likely to have the largest gaps, however Ragtrader research found that many large-scale fashion brands and retailers that are heavily dominated by women, have high gender pay gaps that favour men. This comes as more men make up upper quartile roles than women compared to lower quartile roles.
Some major womenswear brands have average total remuneration gender pay gaps of over 40 per cent.
“The fact that men are nearly twice as likely as women to be in the highest paid roles and that women still dominate the lowest paid roles should offer a reality check for anyone who thinks Australia has achieved equality in the workplace,” Wooldridge said.
In the past year, broad collective action by employers across all industries has seen the size of employer gender pay gaps reduce. WGEA’s analysis shows half of employers have an average total remuneration gender pay gap smaller than 11.2 per cent (down 0.9ppts)
More employers have a gender pay gap in the target range of plus or minus 5 per cent – 22.5 per cent, up from 21.4 per cent in 2023-24.
There’s also more women in high-paid roles (up 1pp), but men are still 1.8 times more likely than women to be in the upper quartile of earners on an average salary of $221,000.
On the other hand, women are 1.4x more likely than men to be in the lowest quartile of earners (down 1pp) on an average salary of about $60,000 a year.
WGEA data also shows that more employers each year are conducting a gender pay gap analysis and consulting their employees on gender equality to inform their decisions around improving performance.
Nearly 5.9 million Australian workers can use WGEA’s Data Explorer to access their employer’s gender pay gap. The gender composition and average pay of high earners and low earners in their workplace is also available.
Commonwealth public sector employer gender pay gaps have also been released – for the first time this year.
WGEA’s analysis of the results, published in the Employer Gender Pay Gaps Report, finds more employer gender pay gaps are smaller today than they were a year ago.
The number of employers with a gender pay gap in the target range has increased.
Wooldridge said the publication of employer gender pay gaps has motivated employers to act on gender equality after progress had previously stalled.
“Many employers have told us publishing their information has helped them prioritise fairness and equality and led to deeper engagement from the C-Suite and Board,” Wooldridge said.
“Results since 2024 show more employers now analyse how managers recruit employees, decide their pay and performance bonuses and determine promotions. Many are also looking past composition and pay to examine women and men’s different experiences of access to parental leave, flexible working arrangements or safety in the workplace.”
Large differences in discretionary payments, like performance bonuses and overtime hours, remain a key driver of many employer gender pay gaps, according to WGEA.
“Employers should treat gender equality like their other business goals. Do a detailed analysis to find the issues, create an action plan to address them and set targets to be accountable for ensuring progress happens,” Wooldridge said.
“Publishing employer gender pay gaps is part of a suite of WGEA reforms designed to accelerate positive change. Shortly, large employers will select and commit to achieve three Gender Equality Targets over the next three years, in a world-first initiative requiring demonstrated improvement in outcomes.
“Women and men want a fair and equal opportunity to use their full range of skills and capabilities, hold the most senior and highest paying roles, feel safe at work and have some flexibility to manage other responsibilities, such as caring, outside of work.
“Progress on gender equality benefits workers, families, employers and the Australian economy as a whole.”
Interestingly, the gender pay gap in the textile, leather, clothing and footwear manufacturing sector in Australia is slightly higher than retail. WGEA results show this sector has an average total remuneration mid-point of 15.7 per cent, with its median total remuneration mid-point at 8.6 per cent.
In the upper quartile (average $159,000 base salary), 65 per cent are men while 35 per cent are women. At the lower quartile end (average $59,000), 48 per cent are men while 52 per cent are women.