Funding to address gender pay gap

An extra $8 million will go towards addressing the gender pay gap in public sector workplaces.

The federal government has announced the Workplace Gender Equality Agency will receive the money to upgrade its system in a bid to improve reporting on the issue.

The upgrade will allow public sector employees to voluntarily report on issues relating to gender pay gaps for the first time.

"While women in the Australian workforce have come a long way, on average they still earn less than men," Minister for Women Kelly O'Dwyer said.

"It is important to continue to improve the data available so we can identify and address sources of gender inequality in the workplace."

Women are still less likely to be in the workforce than men, and work part time at more than twice the rate of men.

Data from the gender equality agency shows that a woman who works full time will earn $26,000 less per year on average than a man.