Ethnicity pay gaps

Over the last year pay gaps have been decreasing across all groups.

Our analysis of ethnicity pay gaps show the following (data from 30 July 2024):

• The average pay for men/tāne is higher than that for women/wāhine across all ethnicities except European women.
• The current average ethnicity pay gaps are 13.4% for Pacific peoples, 15.9% for Asian, 8.45% for Middle Eastern, Latin American and African people (MELAA), and 8.06% for Māori.
• The pay gaps are significantly higher for women – with a pay gap of 21% for Māori wāhine, 24% for Asian women and 24% for Pacific women.
• Over the past five years pay gaps have been decreasing across all groups except for Asian women, which has increased. This is likely due to an increased number of Asian new hires in frontline roles.

As with gender, representation is the primary reason for Inland Revenue Te Tari Taake’s ethnicity pay gaps. A large proportion of Māori, Pacific peoples, Asian and MELAA people are in lower paid roles, and a smaller proportion are in higher paid roles.

Within roles, like-for-like pay differences are minimal. We will continue to review within role analysis as the population shifts to ensure no pay gaps are created.

The average pay gap has increased for Asian, and Pacific peoples but decreased for MELAA, European and Māori. One of the drivers of the increase in the Asian pay gap is a high level of recruitment in front line and lower paid roles.

The average female/wāhine pay gaps have reduced for all ethnicity groups except Asian over the past year.