Gender pay gap in focus of feminised workforce review

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Disability workers, early childhood educators and health staff could be in line for a pay rise to narrow the gender pay gap.

But any move to lift the wages in highly feminised industries would have to be gradually phased in to manage workforce and economic risks, the federal government says.

The Fair Work Commission is reviewing undervalued award wages in industries with a high female workforce such as health, social work, pharmacies, disability and early childhood care.

Any decision to increase award wages would have “broader implications” for workplaces and the economy, the federal government said in its submission to the commission.

While the submission did not say how much the government would want wages to rise, an “orderly transition” would be needed.

“Any wage increases arising from the gender-based undervaluation identified by the commission should be implemented in a measured and responsible manner that manages workforce, fiscal and macroeconomic risks,” the submission said.

“If the commission concludes that pay increases are warranted, the Commonwealth is likely to support a staged or phased process for implementation, particularly for any significant increases.”

The government was backing the commission’s work that would help address inequality, Women’s Minister Katy Gallagher said.

“Although the gender pay gap is reaching historic lows, there is still work to do,” she said.

“That’s why we have made this submission to the Fair Work Commission, to support this important process to address historic gender undervaluation in modern awards.”

The gender pay gap is sitting at 11.5 per cent.

The government announced in August it would legislate a 15 per cent pay rise for early childcare workers, which would be phased in over two years.

The $3.6 billion would be provided to centres that agree not to lift fees for parents by more than 4.4 per cent.

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