Bridging the gender pay gap in Asia Pacific

In 1948, Article 23 of the United Nations Universal Declaration of Human Rights (UDHR) stated that ‘Everyone, without any discrimination, has the right to equal pay for equal work’.¹

A lot has happened since then, including gender wage discrimination becoming illegal in many jurisdictions, but much remains to be done.

In fact, many respected organisations believe it could take decades, if not centuries, to close the gender pay gap at the current rate of progress.

The findings from ADP Research Institute’s latest annual study of employee sentiment — People at Work 2023: A Global Workforce View — support these concerns. Our research shows there are still significant differences between the earnings of men and women across the Asia Pacific nations in our study.²

Although we focus here on gender pay disparities in the Asia Pacific region, this is an issue that crosses cultures and country borders. So even where companies have made progress with both gender equality and women’s participation in the workplace, societal, cultural and sometimes religious inequalities can still hinder progress.

The importance of pay

Unsurprisingly, most of Asia Pacific’s workers rate ‘salary’ as the most important reason for going to work. Nearly six in 10 (59%) of employees say so; a figure in line with the global response (61%).

But the significance of salary varies between the sexes, with more men (63%) saying it’s important than women (55%). Ironically, despite its relative ranking, more women (61%) than men (53%) are satisfied with their salaries.

What’s more, although the rate of inflation varies from country to country and is generally falling across Asia Pacific countries, over six in 10 of the region’s workers (63%) are expecting a pay rise in the next 12 months to help ease the pressure on their household budgets.

How Asia Pacific’s gender pay gap compares to the rest of the world

The region’s economies are diverse, and the experiences and expectations of each nation’s labour force are often quite different. Some of those differences are reflected in this year’s People at Work study, which shows that although the region’s major nations have seen gender pay equality improvements, companies need to go further.

Specifically, the pay rises that women in the Asia Pacific region have recently received haven’t kept pace with those of men. Little wonder, then, that women also expect less this year.

 

Beyond pay – how the genders compare in their careers

• 'I'm satisfied with my career progression'
  Men 52% — Women 59%
• ‘My employer and I talk about career progression’
  Men 67% — Women 75%
• ‘I'm noticed and recognised for my contributions'
  Men 71% — Women 80%
• 'My employer provides financial wellbeing advice'
  Men 65% — Women 74%
• Average number of unpaid overtime hours a week
  Men 9.24 — Women 7.97

Asia Pacific’s gender pay gap — it’s not just business, it’s personal

When it comes to how workers regard pay equity progress across the region, the headline findings from our study showed employers making good progress. But with around a third of workers (32% of men and 33% of women) saying that their employer hasn’t made anyprogress on gender pay compared to three years ago, there’s no room for complacency.

Asia Pacific – leading the world in gender pay gap issues

Globally 53% of staff in the biggest corporations (those with 1000+ employees) say they’ve noticed an improvement in gender pay equality at their companies. But in the Asia Pacific region, even more workers (60%) in the largest enterprises say the same. In mid-sized firms, the picture is even more positive: an average of 66% of Asia Pacific workers in these companies perceive an improvement in their employers’ gender pay equality impact.

“My company is better at gender pay equality compared to three years ago”
	Companies employing 250-500 people	Companies employing 501-999 people
Globally	58%	65%
Asia Pacific	62%	69%

Why closing the gender pay gap matters

Numerous studies have shown that employees who are satisfied with their organisation’s commitment to diversity, equity and inclusion (DEI) are more engaged than dissatisfied employees.

Closing the gender pay gap can bring similar benefits for the leaders of Asia Pacific’s businesses:

Helping companies to recruit and retain the best talent, by:

• raising the morale and motivation of the whole team
• enabling an organisation to promote itself as a fair and transparent one
• relieving the HR team of the unenviable task of having to recruit for, and explain away, an inequitable salary strategy

Legislative compliance: limiting the risk of punitive fines and reputational damage that could result from non-compliance

Employers ignore the gender pay gap at their peril

In earlier research³ by ADP Research Institute — People at Work 2022: A Global Workforce View — we discovered that DEI-related issues were more highly regarded in Asia Pacific than in any other region of the world. Over three-quarters of workers in both India and China said they would consider looking for another job if they discovered their company had an unfair gender pay gap or lacked a diversity and inclusion policy.

Delivering the right data to drive equal pay in Australia

Given the economic climate, employers can’t afford to overlook the importance of pay — and fair pay — in employees’ lives.

Business, HR, payroll and finance leaders can help drive down wage disparities and keep the gender pay gap closed for good by implementing an integrated payroll and HR system that can provide the accurate, real-time data they need to achieve these goals.

What’s more, an effective workforce compensation strategy, which helps a business to achieve the right salary levels and is equitable to both genders, can go a long way to helping employers recruit, reward and retain talent in a tight labour market.

What workers want and how you can deliver it

Undertaken between 28 October and 18 November 2022, People at Work 2023: A Global Workforce View is a study by the ADP Research Institute® that brings you vital intelligence into the attitudes, aspirations, wants and needs of 32,612 workers in 17 countries, including over 8,613 working exclusively in the gig economy.