Update

While the Government has stated that these amendments are intended to make the pay equity process more robust, workable, and sustainable, the practical effect has been the removal of the sector-wide pay equity pathway that previously supported care and support workers, frontline managers and coordinators, and community nurses. As a result, all existing pay equity claims for these roles have been discontinued with immediate effect.

This has placed community sector employers in a difficult position. Funding from government contracts remains limited and has not kept pace with inflation or workforce needs. The removal of a collective, sector-based pay equity solution has closed off a critical avenue for addressing long-standing pay disparities in the sector.

At HCHA, we are actively advocating for Fair Funding to ensure the sector’s long-term stability and sustainability. This includes engaging directly with key political leaders to raise critical questions and amplify the collective voice and visibility of our members. 

We will continue to provide updates as new information becomes available. These will be published in the Members Only section of our website. For more information on becoming a member of HCHA, please contact us at info@hcha.org.nz.

Pay Parity and Pay Disparity Explained

Pay Equity

A pay equity claim is a legal mechanism aimed at ensuring that work historically performed by women is valued and compensated fairly in comparison to work traditionally performed by men. The objective is to eliminate gender-based pay disparities.  In a pay equity claim, the job is assessed to determine whether it has been undervalued due to gender.  This process involves comparing roles across various sectors, considering factors such as qualifications skills and levels of responsibility.  If the assessment finds that the role has been undervalued, steps are taken to adjust the pay rate to accurately reflect the role's true value. 

Pay Parity 

Pay parity focuses on ensuring that employees performing the same or similar roles across different sectors or employees receive equal pay. Unlike pay equity, which addresses gender-based pay gaps, pay parity compares wages for equivalent roles across different environments, such as between the public and private sectors.  The goal is to ensure that all individuals in similar positions receive the same remuneration, regardless of their employer or sector. 

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