Parenting, caring to be recognised in bid to close pay gap in public service

Minister for Women Julie Anne Genter. Photo / Mark Mitchell

New efforts to shrink the gender pay gap in the public sector will see unpaid work such as volunteering, parenting and caregiving taken into account when a woman returns to the workforce or applies for a job in the state sector.

Women's Minister Julie Anne Genter has pledged to eliminate the gender pay gap in the core public sector, which was at 12.5 per cent last year.

That was the lowest since 2000 when it was first measured according to the State Services Commission, which measures based on average pay.

In its report last year on the pay gap, the State Services Commission said that anecdotally time off for parenting or caring was a key driver in the gap because of its effect on career progression and pay.

Acknowledging the relationship between paid and unpaid work is one of five principles state sector bosses have to consider when recruiting and promoting staff to close the gap.

The principles released will guide them to recognise skills and experience gained through unpaid and caring work and ensure they are "utilised and rewarded".

Rachel Mackintosh, the Council of Trade Unions Vice President, said she was delighted that the principles acknowledged parenting and caring as unpaid work.

She said it meant addressing the disadvantage women faced in pay, progression, security of employment and retirement income because of that time out of the workforce.

"Many women take time out of the workforce to do unpaid work. I am thrilled that these principles recognise this - as it is often never properly addressed. These principles mean that work will be designed to recognise the skills used in unpaid work, and make sure women's pay and advancement will not stagnate through taking time out of the workforce."

She also welcomed principles aimed at eliminating conscious and unconscious gender bias and maintaining transparent employment and pay practices.

Genter said the principles would guide all Government work on gender pay and ensure women's contributions, skills and experience across the board, including in unpaid work.

State Services Minister Chris Hipkins said the principles were developed by state sector unions and agencies, including the State Services Commission.

"The Government recognises that workplace gender equality must be addressed by policies around recruitment, remuneration, career progression and many more."

The SSC said the gap had narrowed over recent years partly because of the increasing proportion of women in senior leadership roles (48 per cent, up from 38 per cent in 2008) and closing gender pay differences in large workforces, such as IT, social, health and education workers.

Statistic New Zealand calculated last year's nation-wide pay gap at 9.4 per cent based on median pay rather than the average pay model the State Services Commission prefers. The public service pay using median pay was slightly higher, at 9.7 per cent.