The analysis found the overall gender pay gap had slightly improved over the past year, narrowing to 16.7 percent from 18.5 percent, more work was required. Photo: 123RF
A labour market report indicates men of European descent are paid more than everyone else on average, suggesting big organisations could do more to address the disparity.
Strategic Pay and MindTheGap's third annual report on gender pay has found significant gaps which could be reduced with mandatory reporting of pay rates.
Compared to the average hourly pay rate of European men:
- Pasifika men earn 22.9 percent less
- Māori men 16.7 percent less
- Asian men 10.8 percent less
- European women 11.9 percent less
- Wahine Māori 23.0 percent less
- Pasifika women 24.0 percent less
- Asian women 17.4 percent less
- Middle Eastern, Latin American and African 19.0 percent less
- Women in the 'other ethnicity' group 22.0 percent less
The report estimates it would cost an additional $17.6 billion a year in wages and salaries to raise average ethnic and gender pay to match that of Pākehā men - about 11 percent of total wages and salaries.
While the analysis found the overall gender pay gap had slightly improved over the past year, narrowing to 16.7 percent from 18.5 percent, more work was required.
"When you broaden the analysis to incorporate ethnicity, the enormity of the deficit experienced by women and ethnic minorities reinforces the need for employers to comprehensively address pay disparity," Strategic Pay managing director, Cathy Hendry said.
"These disparities are not easy to fix - we need to address the systemic and structural gender and racial inequality which exists in the labour market and in society."
Job evaluation systems could be helpful but better data was required, such as compulsory reporting of pay gaps in large private and core public sector organisations, Hendry said.
The Strategic Pay report is based on data from more than 192,000 employees in 1141 public, private and not for profit organisations.
The research also indicated women had higher levels of qualifications than men on average, which should be expected to result in higher wage rates, Hendry said.
"Organisations need to play their part and address their own pay gaps and examine any unconscious bias in recruitment and promotions," she said, adding employers could address inequities by putting in place a formal job evaluation system.