You can discuss your pay with colleagues, Australian bank tells staff

SYDNEY (BLOOMBERG) - The water-cooler conversations at Westpac Banking Corp are about to get a whole lot more interesting.

One of Australia's largest banks said on Wednesday (March 30) that it will no longer stop employees from openly discussing their salaries, as part of an initiative to help narrow the gender pay gap.

From April, pay confidentiality clauses will not apply in existing employee contracts, a change it first introduced with new hires that joined the lender from December.

"The past two years have seen increased visibility and awareness of important issues including gender equality, women's economic security and women's safety," said Ms Christine Parker, group executive for human resources. "There is more to do, but we're encouraged by the current conversations and willingness to engage."

Australian men are twice as likely to be highly paid than women, according to a report from the Workplace Gender Equality Agency last month. While the pay gap narrowed to 22.8 per cent in the year through March 2021, the drop was just half a percentage point, as calls grow louder for stronger visibility and treatment of women in the country's labour force.

Westpac said the increased transparency would be another step in reducing the risk of bias against women in the workplace.