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Pay Equity in New Zealand: How employers can build fair, inclusive workplaces

09/04/2025

Watch the video.

One of the most common questions we hear from clients is:
“How can we ensure we’re paying our people fairly and equitably?”

It’s an important question, and one that’s gaining even more urgency as expectations shift across the New Zealand workforce.

Recent headlines have highlighted the country’s persistent gender pay gap – which, according to the latest Stats NZ data, sits at around 8.6%. For wāhine Māori, Pacific women, and other underrepresented groups, the gap is even wider.

It’s no longer enough to assume fairness – organisations are expected to prove it.

Why pay equity matters – now more than ever

In today’s employment landscape, pay transparency and fairness are fast becoming non-negotiables.

From a cultural perspective, fair pay helps foster an inclusive environment where all employees feel respected and valued. From a business perspective, it improves engagement, retention, and your reputation as an employer of choice.

More than that, pay equity is increasingly being linked to brand integrity, especially in purpose-led and values-driven organisations. In the regions we work, across the motu, we're seeing a noticeable rise in jobseekers asking about pay equity policies during the recruitment process.

And of course, it's just the right thing to do.

So, where do you start?

Achieving pay equity doesn’t need to be overwhelming. There are practical steps that Kiwi businesses, big or small, can take right now. These include:

  • Conducting a gender and ethnicity pay gap analysis
  • Reviewing internal remuneration policies and pay bands
  • Ensuring pay decisions are based on objective, policy driven criteria
  • Training managers to recognise and address unconscious bias
  • Benchmarking salaries against industry data

We work with businesses nationwide to navigate this process. Whether you need a one-off audit or more comprehensive support, we can tailor an approach that fits your organisation.

It starts with a conversation

If you're wondering whether you're paying your people fairly, or you're unsure where to begin, we’re here to help.

Let’s make sure your people are not only paid right, but feel valued, included, and empowered.

Contact Tim Malcolm – HR People and Capability Lead - for more information.

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