Pay Equity Report: December 2023


Compared to our initial reporting in 2022, we have made improvements by decreasing our pay gaps and by increasing our representation of diverse people in our workforce and in our leadership. Although we have progressed our goals, we recognise the need to continue to work to eliminate our pay gaps and to ensure our workforce better reflects the population of New Zealand.

As with all small organisations, even small staffing changes can impact our pay gap statistics. The main driver of our gender pay gap continues to be an overrepresentation of women in lower paid roles. The main driver of our ethnicity gap is an underrepresentation of Māori, Pacific, and other ethnic minorities in higher paid roles and in leadership.

We can clearly see opportunities that could create the most positive change are:

  • increasing the representation of Māori, Pacific and other minorities groups in our workforce
  • improve our flexible working, recruitment and remuneration processes to better access diverse groups and to eliminate bias
  • increasing the representation of Māori, Pacific and other minority groups in leadership, specifically tiers 3 and 4.

About this report

Unless otherwise stated, the data includes both permanent and fixed-term employees and is as of December 2023. This report will be used to guide the next update of our pay and people equity action plan, in July 2024. 

Kia Toipoto – The Public Service Pay Gaps Action Plan(external link)

Our people

Total employees: 169

Permanent 102 51 2
Fixed-term 12 2 n/a
Full-time 99 47 2
Part-time 15 4 n/a

Pharmac ethnicity

We have a 92% ethnicity declaration rate. We have used a total response reporting method. This means people can appear more than once in our reporting, so ethnic group totals will add up to more than 100 percent of staff.

Bar graph showing that, compared to the NZ population and Public service average, Pharmac has a higher proportion of European staff, and lower proportions of Māori and Pacific staff..
2023 Ethnicity breakdown of Pharmac staff compared to 2022, the New Zealand population and the public sector average

Pay gaps

We calculate gender pay gaps as recommended by Te Kawa Mataaho | Public Service Commission, the percentage difference in the average pay for women and men using full-time-equivalent total remuneration. Ethnicity pay gaps are also calculated using average pay.

Although we performed a thorough review of our pay equity, due to our small size, we are only able to report our gender and non-European/European ethnicity pay gaps.

Our Gender Pay Gap (GPG) is 6% | Our adjusted GPG by level is 0.7%.

Our ethnicity pay gap for Non-Europeans/Europeans is 12%, down from 17% in 2022.

Average salary by gender and ethnicity

Due to small numbers some gender and ethnicity groups have been aggregated, including Māori, Pacific peoples and Non-European men.

Bar graph illustrating that white men have the highest average salary at Pharmac, followed by all men. Non-European people have the lowest average salary at Pharmac..
2023 Average salary for Pharmac staff by gender and ethnicity

Representation in leadership

We recognise that leadership is not always about managing people. Thought leaders are those who provide expert advice. Thought leaders use their experience to influence and guide by providing insight into a specific topic. We have reported leadership including our thought leaders. We have also reported people managers in a separate representation.

By ethnicity

5% of people leaders did not declare an ethnicity.

pie charts showing 1 in 5 people in leadership positions are non-European. 15% of people managers are non-European..
2023 Ethnicity breakdown of leadership and people managers

By Gender

pie graphs showing that well over half of people in management positions identify as female. Despite this, men still have higher salaries on average..
2023 Gender of Pharmac leadership and people managers