New report reveals impact of motherhood penalty for older women in the workforce
New Zealand's gender pay gap has narrowed significantly since 2010, but progress has stalled in recent years, according to a new report.
An analysis by MoneyHub of Stats NZ data revealed that the country's gender pay gap had narrowed to 16% by 2025, down significantly from 25.5% in 2010.
Men are earning $75,816 annually as of 2025, while women only earn $63,700, leaving a significant gender gap of $12,116 per year.
"Men earn more than women at every age group, in every region, and across all ethnicities," the report read. "The gap has narrowed significantly since 2010, but progress has stalled in recent years."
The gap varies across life stages, according to the report.
The smallest gap was recorded among employees aged between 25 and 29 years old, with a 7.7% gender gap.
But this gap widens as employees grow older, with the widest 20.9% gender pay gap recorded among employees in the 50 to 54 age group.
This coincides with the years when many women reduce hours for caregiving, according to the report, which referred to it as a manifestation of the "motherhood penalty."
Ethnic pay gaps
Meanwhile, pay gaps also continue to persist by ethnicity, MoneyHub revealed.
European workers earn a median of $72,800 annually, an 11.4% gap relative to Pacific Peoples' earnings of $64,480 per year.
"Ethnicity correlates with earnings outcomes in New Zealand. European workers consistently earn more than Māori, Pacific Peoples, and Asian workers," the report read.
"These gaps persist across all age groups and have narrowed only modestly over 10 years."
The findings come as the New Zealand government takes steps to address the pay gaps in the workforce, such as passing a new law empowering employees to discuss pay openly.
It also recently introduced a gender pay gap calculator, with a second iteration addressing ethnic pay gaps underway.
Median pay up 52%
Alongside these disparities, the same MoneyHub analysis also found that New Zealand's median pay has grown by 52.6% in the past decade.
Median salary reached $69,836 in 2025, a significant growth from $45,750 in 2015, according to the report.
"Age is the single biggest predictor of earnings," said Christopher Walsh, Founder of MoneyHub, in a statement.
"Workers aged 45 to 49 earn the most at $81,900 median – more than four times what 15 to 19 year olds earn. But after 50, earnings decline, reflecting reduced hours and career changes as people approach retirement."
