Five Million Voices

Should the process for raising and resolving pay equity claims be amended to raise the merit threshold, restrict comparators, and discontinue existing claims so they must be re-raised under the new rules?

The bill amends the Equal Pay Act 1972 framework for raising and resolving pay equity claims, changing how sex-based undervaluation is assessed. It alters the entry threshold, comparator rules, employer tools, and the Employment Relations Authority's role in fixing remuneration.

⚡ Taken under urgency

Parliament advanced this bill under urgency (committee of whole house, first reading, second reading, third reading) — moving it through faster than usual, with less time than normal for public submissions.

MPs’ arguments for and against the bill

Why support it
  • Supporters argued the 2020 settings let claims progress through the entry threshold without strong evidence of sex-based undervaluation, and the bill restores a requirement that claims have merit.
  • Supporters said the existing law allowed comparators whose work and skills differed greatly from claimants, citing admin staff compared to mechanical engineers, and the bill provides clearer guidance on choosing appropriate comparators.
  • Supporters argued the system needs to be workable and sustainable for employers facing additional costs, and the bill gives employers tools to ensure claims are appropriately scoped and resolved with the right incentives.
Why oppose it
  • Opponents argued the bill extinguishes existing claims affecting large workforces such as teachers and removes review rights, leaving predominantly female workers underpaid for longer.
  • Opponents said the changes were driven by a desire to save money for the Government rather than to address genuine undervaluation, and that low-paid essential workers would bear the cost.
  • Opponents objected to the process, saying the bill was introduced under urgency with little notice and reversed a framework previously developed and supported across parties, unions, and business.

These are claims MPs made in Parliament’s debate — not verified facts.

Full bill summary & link to official bill page

The Equal Pay Amendment Bill amends the Equal Pay Act 1972, along with related provisions in the Employment Relations Act 2000 and the Public Service Act 2020, to change how pay equity claims work. Pay equity claims let workers in female-dominated jobs argue they are underpaid compared with similar work done in male-dominated occupations. The bill raises the bar for such claims: it lifts the threshold for what counts as predominantly female work (to around 70%), tightens the merit test a claim must meet before it can proceed, and narrows the comparator jobs workers can use, including removing broad cross-sector comparisons. It also discontinues pay equity claims already in progress, requiring them to be re-lodged under the stricter new rules. It mainly affects predominantly female workforces, such as those in care, health, education and local and central government, and their employers.

This is a government bill. The main argument in favour is that it creates a simpler, more robust framework genuinely targeted at sex-based pay discrimination, prevents overly broad or costly claims, and produces large savings in public spending. The main argument against, put by unions, women's advocates and the opposition, is that it guts hard-won pay equity, wiping out 33 claims covering around 150,000 mostly female workers, and was rushed through without proper scrutiny or a regulatory impact statement, disproportionately harming low-paid women.

See the Parliament.nz ↗ site for the full bill.

Oppose (No) Support (Yes)

Equal Pay Amendment Bill · Second Reading, 6 May 2025
Parliament voted 68–55 — it passed.