Understanding the pay gap

Many factors contribute to gender pay differences and there are many myths about why.

In the Victorian public sector:

  • more women are employed than men
  • a higher percentage of men are in the highest pay group
  • a higher percentage of women are in the lower pay groups.

Read more about workplace gender equality measures at Workplace Gender Equality Agency and the Commission for Gender Equality in the Public Sector.

How we work out the gender pay gap

We use the overall pay gap between women and men as a way to measure workplace gender equality.

We only report the gender pay gap in a binary way (men and women) because the number of employees with self-described gender identity is currently too small to analyse.

We work out the gender pay gap using:

  • mean pay or average pay gap — the lowest and highest salaries have more influence, which increases the pay gap because of the small number of men earning very high salaries.
  • median pay or ‘middle’ point of the pay gap — this is less influenced by extreme salaries or outliers and gives us a better idea of the gap for most employees.

This year we’ve included the median and mean pay gap in line with how the Commission for Gender Equality in the Public Sector (CGEPS) reports gender pay gaps. However, our numbers may be different to the CGEPS because they include other organisations in their analysis. For example, they include school employees such as teachers, administrative and other support staff in their Victorian Public Service analysis.

To work out the median pay gap for the overall public sector workforce we:

  1. Find out what the median full-time equivalent pay is for men ($102,798) and women ($91,598).
  2. Work out the difference between those 2 numbers ($102,798 minus $91,598 equals $11,200).
  3. Express the difference as a percentage of the men’s median salary ($11,200 is 10.9% of men’s median salary of $102,798).
  4. Confirm the median pay gap for the public sector is 10.9%.

Key facts

Overall public sector workforce:

  • 19.2% or $23,347 is the mean (average) pay gap of non-casual public sector employees
  • 10.9% or $11,200 is the median gender pay gap of non-casual public sector employees
  • Overall, more women are employed in each pay group than men. But a higher percentage of men are in the highest pay group than women
  • The gender pay gap favours men across most occupations and increases with age.

Victorian Public Service:

  • 6.8% or $7,822 is the mean (average) gender pay gap of non-casual VPS employees
  • 0% is the median gender pay gap of non-casual VPS employees
  • The gender pay gap is driven by a higher percentage of men in the highest pay group comared to women.

Median and mean salaries

Overall public sector workforce:

  • median salary: $93,360
  • men’s median salary: $102,798
  • women’s median salary: $91,598
  • median pay gap: 10.9% or $11,200
  • mean (average) pay gap: 19.2% or $23,347.

Victorian Public Service:

  • median salary for men and women: $103,463
  • median pay gap: 0% or $0
  • median salary is the top of the VPS grade 4 band (inclusive of relevant mobility payment)
  • mean (average) pay gap: 6.8% or $7,822.

The mean pay gap in the VPS is driven by a higher percentage of men in the highest pay group and a higher percentage of women in the middle pay group.

See chart below on the gender pay gap across pay groups and pay classification.

Gender pay gap based on median annual salary

The median gender pay gap varies by industry group.

In 2022, the median gender pay gap:

  • rose to 15% from 14% in 2021 for creative industries, finance, transport and other industries. They have the largest gender pay gap in the public sector.
  • fell to 0% from 2% in the Victorian Public Service
  • fell to 6% from 8% in public healthcare
  • fell to 10% from 13% in Government schools
  • fell to 5% from 6% in 2021 in police and emergency services. It was 4% in 2020.
  • stayed at 13% in TAFE and other education industries. It was 17% in 2020.

 


Distribution of men and women across pay groups

Overall public sector workforce

The pay gap is affected by the uneven distribution of men and women across pay bands and occupations.

Each pay group represents a third of the overall public sector workforce:

  • lowest pay group: less than $79,658
  • middle pay group: $79,659 to $108,461
  • highest pay group: $108,462 or more.

Roles in the lowest pay group are mostly filled by women and include:

  • carers and aides working in health, welfare and education
  • enrolled nurses and entry-level registered nurses
  • entry-level teachers.

Roles in the highest pay group include: 

  • managers 
  • medical practitioners 
  • school principals and senior teachers 
  • senior administrative and business professionals 
  • senior nurses, allied health and science professionals 
  • senior operational police, paramedics and firefighters.

Overall, more women are employed in each pay group than men. But the percentage of men in the highest pay group is higher than the percentage of women.

For example:

  • 62,684 of the 221,974 women employed (28%) are in the highest pay group
  • 47,034 of the 106,112 men employed (44%) are in the highest pay group.

You can use the chart to see the number or percentage of men and women in each pay group.

 

Distribution of salary ranges by gender and industry groups

The distribution of men and women across salary ranges varies across industries. The chart below shows a breakdown of gender distribution across $20,000 salary ranges.

 


Victorian Public Service

Each pay group represents a third of the total Victorian Public Service workforce, which includes the:

  • lowest pay group: less than $91,337
  • middle pay group: $91,338 to $116,256
  • highest pay group: $116,257 or more.

More women than men are employed overall. But the percentage of men and women is unevenly distributed across the pay groups.

For example: 

  • 8,180 of the 22,371 men employed (37%) are in the highest pay group
  • 9,885 of the 33,057 women employed (30%) are in the highest pay group
  • 6,825 of the 22,371 men employed (31%) are in the middle pay group
  • 12,431 of the 33,057 women employed (38%) are in the middle pay group.

You can use the chart to view the number or percentage of men and women across the pay groups.

 

 


 

Gender pay gap across Victorian Public Service pay classification, based on average salary

The gender pay gap in each VPS grade is small. The largest gap is in the Senior Technical Specialist grade with a gap of 2.8% or $5,793.

 


Median gender pay gap by occupation group

The median gender pay gap for non-casual employees varies by occupation group:

  • the pay gap favours men in all major occupation groups
  • the largest pay gap is 24.2% or $21,590 in favour of men for community and personal service workers. This includes carers and welfare support occupations and police, fire and paramedic occupations.
  • the smallest pay gap is 0.3% in favour of men for the managers occupation group.

 


Median gender pay gap by age

The median gender pay gap for non-casual employees increases with age:

  • the lowest pay gap is 2.5% or $1,670 for employees aged 15 to 24 years
  • the pay gap is 17.9% or $19,686 for employees aged for 65+ years.

 


Data set

This data set covers June 2018 to June 2022.

We source this data from our annual workforce and executive data collections that cover over 1,800 Victorian public sector employers.

Remuneration

This file has the following remuneration measures, based on full-time base salaries for non-casual Victorian public sector employees:

  • median base salary and distribution of employees within each salary band by industry, gender and Aboriginal and/or Torres Strait Islander identity
  • median base salary for each major occupation in public entities by gender
  • mean base salary for each Victorian Public Service classification by gender
  • median base salary for each Victorian Public Service classification by gender.

Download remuneration data set (XLSX, 108kb)