Financial Services Council targets gender pay gap

Gender pay gap in financial and insurance services sector was 29.3% as of June 2024

Financial Services Council targets gender pay gap

Insurance News

By Roxanne Libatique

The Financial Services Council New Zealand (FSC) has identified the gender pay gap as a key area of focus for its Empower Women initiative, aiming to address wage disparities within New Zealand’s financial and insurance sectors.

One of the initiative’s first actions for 2025 was backing the Employment Relations (Employee Remuneration Disclosure) Amendment Bill, which seeks to enhance pay transparency.

FSC’s Empower Women submitted a formal response to Parliament in January, supporting provisions in the bill that protect employees who disclose or discuss their remuneration. The group has stated that such measures could expose pay inequities and aid in resolving wage gaps across workplaces.

Gender pay gap in New Zealand’s financial sector

The gender pay gap in the financial and insurance services sector was 29.3% as of June 2024, according to Ministry for Women data. This figure reflects significant disparities in pay between men and women, particularly for those in leadership roles or from Māori and Pasifika communities.

Lower wages for women contribute to a cascade of economic impacts, including reduced lifetime earnings, diminished retirement savings, and increased financial insecurity for families. These inequities, according to FSC’s Empower Women, are obstacles to achieving a fair and resilient workforce.

Proposed solutions and broader collaboration

In addition to legislative support, Empower Women has aligned its goals with the Retirement Commission’s National Strategy for Financial Capability 2025-2027. This plan emphasises practical steps for employers, including conducting pay audits, removing bias from recruitment and promotion practices, and creating clear pathways for career progression.

Advocacy groups such as Global Women have described the pay gap as an ongoing economic challenge, urging businesses to adopt flexible work arrangements, strengthen parental leave policies, and address cultural norms that perpetuate inequality. Structural change, they argue, is necessary to achieve lasting results.

Recognising leadership in gender equity

FSC’s Empower Women also celebrated the recent achievements of Alexia Hilbertidou, founder of GirlBoss, who was awarded the Diana Award for her efforts to close gender gaps in STEM, leadership, and entrepreneurship. Through GirlBoss, Hilbertidou has engaged over 100,000 young people across more than 400 schools in New Zealand.

Her recognition reflects the growing importance of empowering young women to challenge barriers and pursue leadership opportunities, goals that align with the broader mission of the Empower Women initiative.

Next steps for Empower Women

The Empower Women group has encouraged financial services leaders to adopt more transparent and inclusive workplace practices. In addition to supporting the remuneration disclosure bill, the group plans to expand its initiatives in 2025, focusing on industry engagement and collective action.

Co-chairs Tracey Cross and Prue Tyler have emphasised that closing the gender pay gap will require both immediate and long-term efforts. While legislative changes are an important step, they argue that addressing systemic barriers and unconscious bias is critical to creating lasting equity in pay.

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