In some occupations and industries where the work is or was predominantly performed by women, wages have been kept lower than occupations where the work has been performed predominantly by men. Until 1960, it was legal in New Zealand for men and women to be paid different rates despite doing the same work. The Government Service Equal Pay Act 1960 introduced equal pay legislation in the public service ensuring women in the public sector were to be paid the same as men for doing the same work under the same conditions. This was followed by the Equal Pay Act 1972 which extended equal pay to the private sector.
The Equal Pay Act 1972 outlawed discrimination in wage rates between men and women performing the same job.
While the fight for equality in the workforce continues for female workers in New Zealand and around the world, the Equal Pay Act 1972 was one of many successful stepping stones towards reaching this goal.
Need for equal pay
Women form a significant part of the New Zealand workforce and contribute to economic growth. However, they have relatively different experiences in the labour market compared to men and suffer economic disadvantages.
The gender pay gap in New Zealand has reduced steadily from 16.3% in 1998 to 8.2% in 2024. Progress is slow and there are many obstacles to cross but efforts are being made.
Common trends that indicate the need for equal pay and reducing pay disparity in New Zealand:
- Women are concentrated in lower skilled, lower paid and/or part-time or casual work
- Women earn less despite having more qualifications than men
- Women are more likely to be underemployed and underutilised in the labour market
- Women are more likely than men to have experienced discrimination, harassment, or bullying at work
- Women undertake a disproportionate share of caring and family responsibilities, reducing their capacity to study, train, work, and adapt to labour market requirements and changes
About the Equal Pay Act 1972
The Equal Pay Act 1972 is a New Zealand law amending the unequal pay rate between male and female workers. It ensures all employees are paid equally based on the value of their work and skill without any regard to the gender of the employee.
In the Act’s own words, it is:
“An Act to make provision for the removal and prevention of discrimination, based on the sex of the employees, in the rates of remuneration of males and females in paid employment, and for matters incidental thereto.”
The Act clearly outlines a broad range of rules, guides and definitions regarding equal pay that employers must understand and follow to be compliant with employment law.
Some of the topics the Act goes into detail about include:
- The definition of unlawful discrimination
- How to determine equal pay
- Interim increases
- How to recover unpaid wages based on the grounds of equal pay
- Records employers must keep
- How to manage pay increases for female employees
Pay equity vs equal pay
Pay equity is about women and men receiving the same pay for doing jobs that are different, but of equal value (jobs that require similar degrees of skills, responsibility and effort).
Equal pay is about men and women getting the same pay for doing the same job.
Guidelines for businesses
The Act outlines a number of key criteria businesses must satisfy to be compliant with New Zealand law. These range from pay equity to ensuring the company provides equal opportunity for all their employees.
Below are some of the most important takeaways from the Act of importance to businesses across New Zealand:
- No employment agreements or apprenticeship orders shall contain classifications of work that differentiate on the basis of the sex of the employees.
- It is unlawful to refuse, or fail to offer any person the same benefits that are available to persons of the same or similar qualifications, and in the same or similar circumstances of work, based on sex of that person.
- The rate of remuneration for all awards, agreements and apprenticeship orders must be equal among male and female workers with similar qualifications and working conditions.
- There should be no inequalities in regards to part-time and full-time rates of pay among male and female workers.
- Any employee is entitled to make a claim for unpaid wages on the grounds of unequal pay.
Benefits of equal pay in the workforce
A fair and balanced pay structure is not only a legal requirement, it is good for business too. Below are some of the many benefits to having an equal and balanced pay in the workforce:
- Establishes fairness and respect in the workplace
- Improves staff retention rates and saves money on retraining new staff
- Reduces the risk of claims against the company
- Presents a positive image to consumers and inspires confidence
- Makes the company an attractive and inviting place to work
Changes to the Equal Pay Act
In May 2025, the Government announced changes to the Equal Pay Act to provide better framework for parties to use to assess whether there is sex-based undervaluation when a pay equity claim is made.
The changes to the Equal Pay Act through the Equal Pay Amendment Bill provide a better process to raise and resolve claims of sex-based undervaluation in the pay of female-dominated work when a pay equity claim is made.
While these changes will mean all current pay equity claims will be discountinued, new claims can be raised under the amended Act if they meet the new requirements.
Create fair workplaces with Peninsula
Ensure you know your obligations and meet all your responsibilities fairly. Peninsula provides customised documents, resources, advice, and software for all your staff management and health and safety needs. Call us on 0800215029 to learn how we can support your business.
This article is for general information purposes only and does not constitute as business or legal advice and should not be relied upon as such. It does not take into consideration your specific business, industry or circumstances. You should seek legal or other professional advice regarding matters as they relate to you or your business. To the maximum extent permitted by law, Peninsula Group disclaim all liability for any errors or omissions contained in this information or any failure to update or correct this information. It is your responsibility to assess and verify the accuracy, completeness, and reliability of the information in this article.