Recent data highlights significant ethnic pay gaps in New Zealand’s public sector, with Asians and Pacific people facing the largest disparities. The Public Service Commission has reduced the Māori pay gap from 11.2% in 2018 to 5.4% in 2023, but progress for other ethnic groups is lagging. As of 2023, the pay gap for Pasifika was 16.6%, a decrease from 21.6% in 2018, while the gap for Asians increased slightly to 13% from 12.6%.
Similarly, data from the Inland Revenue Department revealed that Asians and Pasifika continued to experience rising pay gaps by July 2024, with a gap of 15.92% for Asians and 13.5% for Pasifika. The Ministry of Business, Innovations and Employment reported a persistent high pay gap for Pasifika at 20.4%, significantly higher than for other ethnic groups.
The Department of Internal Affairs and the University of Auckland have also identified considerable pay discrepancies, particularly affecting Asian and Pacific women. At Auckland University, Asian women in academic roles face a substantial 33.5% pay gap.
Several organizations attribute these disparities to the overrepresentation of ethnic minorities in lower-level positions. For instance, the increased pay gap for Asian public servants is linked to the presence of younger Asian employees early in their careers.
Auckland Council, facing public pressure, is set to include Asian employees in its pay gap reporting by 2025. This comes as the Asian population in the city, currently 28%, is expected to grow significantly by 2043.
Experts, including Dr. Ritupurna Roy from the University of Waikato, emphasize the role of immigration systems in perpetuating these pay gaps by undervaluing the qualifications and experience of first-generation Asian migrants. Meanwhile, Pacific women’s advocate Seimoana Naisali highlights additional barriers faced by women of color, including cultural obligations and discrimination, which exacerbate their pay disparities.
Calls for policy changes, increased pay transparency, and comprehensive data collection are growing as part of the effort to address these enduring inequalities in New Zealand’s labor market.
