October 05, 2022
Ethnic pay gap stays wide
Remuneration advisors Strategic Pay says gender and ethnic pay gaps amount to a total of $17.6 billion, or 11 percent of wages and salaries.
Managing director Cathy Hendry says is third annual pay equity analysis shows some ground being clawed back after a widening gap last year, these gains were mostly in the public and not for profit sectors.
The overall gender pay gap it at 16.7 per cent compared to 18.5 per cent last year.
In addition to the gender pay gap, there is a substantial hourly pay gap between ethnic groups.
Māori men earn 17 per cent less than pakeha men, Pacific men earn 23 percent less and Asian men earn 11 per cent less.
While pakeha women earn 12 per cent less than pakeha men, wahine Māori earn 23 per cent less.
Ms Hendry says employers need to address the disparity not just by raising pay, but through cultural change within organisations.
The Strategic Pay analysis differs from official figures because it also takes into account benefits such as vehicles, insurance, KiwiSaver and bonuses.