Newly released data from the Australian Bureau of Statistics (ABS) shows that as more workplaces negotiate collectively bargained enterprise agreements, we are seeing higher wage increases in those workplaces and an overall reduction in the gender pay gap.
The data shows that workers who are covered by an enterprise agreement have achieved an average 9.6% wage increase over the two years to May 2025 – the biggest increase across all methods of wage-setting. Narrowing the view down to women-only data, women on enterprise agreements earned 12.4% more than the average across all methods of setting pay for women.
There are now more that 4.5 million workers whose wage and work conditions are set by negotiated enterprise agreements, as opposed to other means of wage-setting such as Awards or individual agreements. This has been achieved by consistent union activism and thousands of hours of organiser work to ensure the employees of as many workplaces as possible are covered by an enterprise agreement.
A great example of this tireless work is the Australian Services Union (ASU) campaign to achieve multi-employer bargaining for social and community services workers and local council workers, from early childhood educators to librarians. Constant effort, thousands of miles travelled and consistent pressure on employers has ensured that workers in those sectors have robust agreements and wage increases that can cushion the impact of increased cost-of-living expenses. In these women-dominated industries such efforts, along with union work to address gender undervaluation, is increasing the rate at which we are combatting the disparity in gendered pay.
According to the ABS, the gender pay gap for hourly earnings was 8.4% in May 2025, down from 8.9% two years earlier. Hourly earnings were $47.90 overall, with males earning an average of $50.20 and females $46.
ABS head of labour statistics Sean Crick said, “hourly pay was one of the indicators used by the ABS to measure the gender pay gap as comparing hourly pay was useful as women were more likely to work part-time than men.”
Employment and Workplace Relations Minister Amanda Rishworth said the narrowing of the gender pay gap for hourly earnings was encouraging and helped women reap greater economic benefits and ease cost of living pressures.
“The data shows the Albanese Government’s reforms are helping workers on
enterprise agreements experience the strongest wage growth across all pay-setting
arrangements,” Ms Rishworth said.
ACTU secretary Sally McManus said on Sunday that “the evidence is very clear that
collective bargaining delivers the best pay rises”.
“Therefore, the best way to combat cost of living pressures is to join together and get
a collective agreement,” she said.
Find the full ABS stats here: Employee Earnings and Hours Australia May 2025 | Australian Bureau of Statistics