84 cents for every $1: Why indigenous workers earn less in Australia—and what to do about it

This article has been reviewed according to Science X's editorial process and policies. Editors have highlighted the following attributes while ensuring the content's credibility: Indigenous workers in Australia earn 15.9% less per hour on average than all workers—or 84 cents for every $1 earned by non-Indigenous people—our research found. That's equivalent to working almost two months of the year for free or losing more than all your employer's compulsory superannuation contributions (typically 12% of people's income).

Looking at average annual incomes, Aboriginal and Torres Strait Islander workers earn around $15,040 less per year than all Australian workers. Our analysis of 227 occupations revealed where the Indigenous pay gap is greatest, what lies behind it and what more can be done to close it. The Towards Indigenous Pay Parity study drew on data on about 10 million Australian workers from Jobs and Skills Australia's Gender Economic Equality Study.

The data covered more than 80% of both Indigenous and non-Indigenous workers in 2022–23. The widest pay gap we found was between Aboriginal and Torres Strait Islander women and all men, with a 21% difference in average hourly pay. Aboriginal and Torres Strait Islander women face compounding pay disadvantages: lower hourly wages, less representation in higher-paying jobs and fewer working hours.

The pay gap between Aboriginal and Torres Strait Islander men and all men (18.4%) exceeds that between Aboriginal and Torres Strait Islander women and all women (12.5%). This suggests that Indigenous identity is a proportionately greater source of the gap than gender alone. The largest pay gaps are found in higher-skilled occupations, particularly among professionals and managers.

Indigenous professionals, including tech sales professionals and pharmacists, earned about 80 cents for every $1 earned by all workers on an average hourly basis. For example, Aboriginal and Torres Strait Islander professionals earn $83,847 a year on average, compared with $106,911 for professionals overall. That's despite working almost the same hours—an average of 34.2 hours per week versus 35.1 hours.

This is particularly concerning because professional and management roles are projected to account for almost 41% of all jobs by 2033. And it matters most to women, with 17% of Aboriginal and Torres Strait Islander women workers in professional occupations. Even after we took into account differences in hours worked, occupational choice, age and education, a substantial Indigenous pay gap remained.