Pay equity and transparency gaining momentum in Asia

Last month, for the first time, Australia released data reflecting the gender pay gap at nearly 5,000 companies—every private company with 100 employees or more. You can read about how adland and tech companies fared here, but to give a gist, the data paints a stark picture. Some of the biggest companies in the country have a gender pay gap of around 20-40% in favour of male employees. 

Asia does not have similar regulatory mandates at organisational or governmental levels that can promote diversity, equity, inclusion, and belonging (DEIB). However, a recent survey by Aon across 13 Asian markets, the 2023-24 Asia Pay Equity Survey, reveals a significant shift in the DEIB landscape, highlighting that the region is poised to adopt pay practices similar to those observed in North America and Europe.

Pay transparency gaining significance in Asia.

Conducted between December 2023 and January 2024 across mainland China, India, Singapore, Hong Kong, Malaysia, Philippines, Thailand and Japan, the survey finds that despite the absence of specific regulations mandating pay disclosure in the region, a resounding 79% of respondents underscored the significance of pay transparency.

In APAC, Japan and Australia are the notable exceptions, with existing regulations for gender wage gaps in place. However, the tide is turning, with anticipated legislation in key markets such as mainland China, India, Singapore, and Hong Kong heralding a new era of transparency.

Organisations are cautiously navigating the terrain of pay transparency, driven primarily by:
Regulatory compliance (72%)
DEIB policies (58%)
Peer practices (38%)

Public listed companies showing the way

The survey findings highlight a significant disparity in pay transparency practices between publicly listed and privately held companies. 86% of publicly listed companies have embraced some form and frequency of pay transparency, surpassing their privately held counterparts at 74%.

Interestingly, while only 25% of organisations surveyed have proactively disclosed pay-related information to employees, the impetus for transparency extends beyond regulatory mandates.

A significant 62% of organisations have conducted pay equity analyses. Among them, 65% have an implementation strategy to rectify historical inequalities across gender, disability status, race, ethnicity, and other demographics. Again, the prevalence of pay audits is higher in publicly listed companies (75%) in the 13 Asian countries surveyed compared to a split of 50-50 for private organisations.

Peter Zhang, partner and head of Talent Solutions for Aon in Asia Pacific, says the pivotal role of pay transparency in fostering a fair workplace and equitable environment is catching up in the region. He added, "Although pay equity and transparency are still in nascent stages, trends in pay transparency show that regulations will catch up in the region, and most organisations may have to disclose some information about pay transparency.

"Forward-looking organisations in Asia are therefore taking a proactive approach to pay transparency before regulations catch up. While embarking on this journey, they are deciding on the degree and extent of pay transparency based on drivers such as their DEIB policy, peer practices, local market requirements and practices of their global headquarters.”