Australia’s contractor workforce saw the overall average pay gap improve to 17% in FY 2023 compared to 21% FY 2022, according to research from Talent International.

However, more recent data for FY 2024 so far showed a gender pay gap of 24%.

In FY 2023, the transport industry saw the biggest pay gap at 35%. This was followed by the tech sector (26%) and healthcare (24%). On the other hand, the lowest pay gaps were seen in government (5%), education (10%), and hospitality (11%).

By region, Victoria (22%) and New South Wales (21%) reported the highest pay gaps while South Australia reported a 5% pay gap.

Further key trends from the research showed that during the period from 1 July 2023 to 29 February 2024, the median monthly gross remuneration sat at +27.43% in favour of men. At the same time, the average monthly gross remuneration sat at +21.53% in favour of men.

Talent said it has observed different factors that impact the gender pay gap for contractors including fewer women in STEM careers with enough on-the-job learning to fulfil business needs. It also noted career gaps for motherhood leading to fewer years’ experience as contractor rates are directly linked to years of experience.

Matthew Munson, Talent managing director New South Wales, said, “To create true equality it’s crucial that we are highlighting the gender pay gap and educating leaders on why it matters. Pay parity should be just as important to these leaders with their contractors as it is to their permanent employees. Here at Talent, our vision is to empower people to build a better world of work for all, and this is just one factor of that.”