Confusion reigns in the gender pay conversation

Wednesday, 25 June 2025

Whether it’s pay equality, pay parity, pay equity or the gender pay gap - the last thing we need are well-meaning people running in different directions with different understandings, says van Onselen.

Ainslie van Onselen is the Chief Executive Officer of Chartered Accountants Australia and New Zealand.

OPINION: We cannot solve a problem we don’t fully understand. And when it comes to the gender pay gap, confusion continues to cloud the conversation.

Too often, terms like pay equality, pay parity, pay equity, and the gender pay gap are used interchangeably. But these concepts are distinct—and conflating them is hindering progress.

Each year, Chartered Accountants ANZ surveys over 140,000 members globally, including more than 31,000 in New Zealand. Our remuneration survey provides valuable insights, particularly on gender pay.

Yet, year after year, we hear the same refrain: “We don’t have a gender pay gap—we pay equally for equal work.” This response, while well-intentioned, reveals a fundamental misunderstanding.

Changes to pay equity processes caused protests around Budget 2025 time.

Let’s clarify.

Pay equality has been enshrined in New Zealand law since 1972. The Equal Pay Act mandates that individuals performing the same or substantially similar work for the same employer must receive equal pay, regardless of gender.

Pay parity extends this principle across different employers. For example, efforts to align pay among early childhood, primary, and secondary school teachers reflect some progress in this area.

Pay equity goes a step further. It ensures equal pay for different roles that require comparable skills, effort, and responsibility. The government recently overhauled pay equity legislation with the stated aim of improving the pay equity process, sparking significant debate.

Pay equity protest

Finally, the gender pay gap refers to the average earnings difference between men and women across an entire workforce. It is not about unequal pay for the same job. Rather, it reflects the underrepresentation of women in higher-paying, senior roles—an outcome shaped by structural, cultural, and historical factors such as unconscious bias, caregiving responsibilities, and barriers to self-advocacy.

Our latest survey underscores both the problem and the confusion.

The gender pay gap in the accounting profession stands at 22% in New Zealand and 18% in Australia—figures that have started to move in the right direction in recent years, but more must be done.

Alarmingly, 49% of respondents misidentified the gender pay gap as unequal pay for the same role. Only 4% correctly defined it as the overall earnings disparity between genders.

We are determined to end the confusion starting with our own profession, because we must close the gap if we want to attract and retain more talent to accounting and finance.

Ainslie van Onselen, chief executive of Chartered Accountants Australia and New Zealand, said the organisation favours mandatory pay gap reporting.

Our annual Remuneration Survey is a platform for advocacy, supported by our comprehensive Gender Pay Gap Playbook. But education alone is not enough. We believe legislative action must accompany awareness.

The Coalition Government’s introduction of voluntary gender pay gap reporting is a positive step. We believe it’s time to bring mandatory reporting back onto the agenda for discussion - especially as the broader debate around pay equity continues to unfold.

CA ANZ supported mandatory gender pay gap reporting in select committee submissions under the former Governments. Internationally, countries like Australia and the UK have already implemented mandatory reporting, and it has helped shift behaviours and reduce the gender pay gap – a compelling case for why New Zealand should consider doing the same.

Another promising step is the Employment Relations (Employee Remuneration Disclosure) Amendment Bill, introduced in March 2024 and reported back by the Education and Workforce Select Committee in May 2025. This Bill aims to make it easier for employees to discuss pay openly – something Australia legislated for in 2022.

The public outcry about pay equity changes shows that the public wants action on gender pay issues overall. Therefore, it is critical that we make sure we are all on the same page.

Whether it’s pay equality, pay parity, pay equity or the gender pay gap - the last thing we need are well-meaning people running in different directions with different understandings.