Review of equal remuneration principles

This research paper provides an historical perspective on the consideration of equal remuneration principles as it relates to minimum wage setting. The paper consists of four sections: an overview of the relevant legislative provisions of the Fair Work Act 2009 (Cth) which consider ‘the principle of equal remuneration for work of equal or comparable value’ in the adjustment of minimum wages; an historical review of the application of equal remunerations principles in the context of minimum wage setting in the Australian federal, state and territory jurisdictions; a review of literature and research concerning equal remuneration in minimum wage setting in Australia and overseas; and an overview of international approaches to the consideration of equal remuneration principles in minimum wage setting. The paper finds that the Australian federal, state and territory jurisdictions have developed differing legislative frameworks in response to the same international conventions and treaties which, in conjunction with differing facts, circumstances and claims, has lead to some differences in approach between jurisdictions. A review of relevant literature identified a number of common findings including that over a number of years there has been a consistent general finding that there is a significant, persistent and unexplained wage gap between men and women. The paper further found that the literature suggests that the larger unexplained gender wage effect is the result of systemic gender bias in the wage system and/or the undervaluation of women’s work. The overview of the consideration of equal remuneration principles internationally identifies a diversity of law and practice in minimum wage setting according to jurisdiction. Case studies of the United Kingdom and New Zealand however showed an ongoing consideration of equal remuneration principles in minimum wage setting. Evidence shows that in these countries, adjustments to a national minimum wage have impacted the lower end of the earnings distribution but have had less significant impacts on the overall gender pay gap