According to data from the Periodic Labour Force Survey (PLFS) for the period between July 2022 and June 2023, the average monthly salary for a salaried Indian male was ₹20,666, while a woman earned an average of ₹15,722.25.
The International Labour Organization (ILO) estimates that, worldwide, women earn about 23% less than men. This discrepancy has serious social and economic ramifications, impacting not only individuals but also families, communities, and economies.
In India, this discrepancy persists despite several attempts to address it. Women earn significantly less than men, with women earning only 40% of what men earn for similar work. A recent report highlighted that 23.5% of salaried women in Indian metros perceive a gender pay gap. Additionally, 42% of these women face challenges in negotiating salaries.
According to a 2024 study by the Indian Institute for Population Sciences (IIPS) and Tata Institute of Social Sciences (TISS), Mumbai, women perform unpaid domestic work for an average of 301 minutes daily, while men perform the same task for 98 minutes. In terms of female pay parity, India is ranked 127th out of 148 countries in the World Economic Forum's 2023 Global Gender Gap Report. This ranking highlights the persistent difficulties India faces in narrowing the gender gap, especially regarding economic opportunities and engagement. On average, women earn 19% less than men.
Additionally, a survey titled ‘Women and Finance’ conducted by DBS Bank India and CRISIL in ten Indian cities, involving more than eight hundred paid and self-employed women, found that affluent women perceive the gender pay gap more strongly than others. Notably, 23% of salaried women in Indian metros believe there is a gender pay gap, which is more pronounced in urban areas compared to rural areas. In urban areas, many women work in corporate and professional sectors where wage disparities are more evident. These sectors often have higher overall wages, but the gap between what men and women earn can be significant.
Furthermore, in 1993–94, Indian women earned, on average, 48% less than their male colleagues, according to the NSSO. By 2018–19, the gap had shrunk to 28%, but during the COVID-19 pandemic, it widened again. The pandemic disproportionately affected women's income security, further widening the gender pay gap.
Gender-based discrimination and bias in workplaces, the concentration of women in low-paying industry sectors, and the under-representation of women in leadership positions in high-paying industries are key contributors to gender pay disparity in India. This includes lower wages paid to women for work of equal value, undervaluation of women’s work in highly feminized occupations and enterprises, and the motherhood pay gap—lower wages for mothers compared to non-mothers.
Although we celebrated International Equal Pay Day 2024 two weeks ago, the gender pay gap has remained an unresolved issue for decades. Closing the gender pay gap is not just a matter of fairness but also essential for economic growth and social justice. Let's discuss...
Pay Equity: A Matter of Fairness and Social Justice,
Pay equity is fundamentally a matter of fairness and social justice. Gender-based discrimination and unconscious bias in hiring, promotions, and salary negotiations significantly contribute to the pay gap. Women are often offered lower starting salaries and fewer opportunities for raises and promotions.
Moreover, women are underrepresented in high-paying leadership roles and executive positions. This lack of representation can perpetuate the pay gap, as men in leadership positions may be more likely to promote and mentor other men.
Ensuring that women receive equal pay for equal work is essential for creating a just and equitable society. When women are paid less, it can lead to the underutilization of talent. Almost all working sectors are known for their working conditions and pay disparities against women.
Sector-Specific Pay Disparities
Even after controlling for differences in experience, education, geographic differences, and other individual characteristics, women in top management levels earn about 18% less than their male counterparts. Female workers continue to earn significantly less pay than their male counterparts across almost all sectors and occupational sub-categories. For instance:
Tech Industry: Women make up around 30% of the workforce in India, yet their pay is frequently lower than that of men. According to a Women's Web analysis from 2023, women in India's tech industry earn significantly less than men, even when they have the same jobs and experience levels.
Corporate Sector: According to research by Oxfam India, discrimination accounts for 93% of the pay difference between men and women. Males who work for themselves in rural regions make twice as much as females, while male casual workers make ₹3,000 more a month than female workers.
This disparity is even more pronounced in the urban self-employed sector, where men earn 141% more than women. A significant portion of women’s work in India is unpaid. Many women stay out of the recognized workforce due to family duties, hostile workplaces, and a lack of decent work opportunities. This unpaid labor is often not accounted for in economic analyses, further skewing the perception of the gender pay gap.
Gap Widens,
A study by the CFA Institute, released in March 2023, showed that the pay gap widens as women move higher up the career ladder. It noted that the median remuneration ratio of women to men was 0.52 for key managerial personnel (KMP) and 0.64 for directors. This means a woman holding a key management position makes just half the money that her male counterpart does.
“Women who are part of key management personnel are paid roughly half the amount of their male counterparts,” noted the report, adding: “Some practitioners suggested that women might be overrepresented in company secretary roles, which are typically paid lower than other KMP. Even so, these low numbers overstate the actual experience because the number of data points is so small. Of the 112 companies that provided a breakdown of KMP remuneration by gender, 77 companies (69%) had no women KMP at all.”
At the same time, a report by the Pew Research Center cited most women being treated differently by employers as a major reason for the pay gap. “Smaller shares point to women making different choices about how to balance work and family (42%) and working in jobs that pay less (34%).”
Pay Commission and Supreme Court's Role; and Legal Prospects Regarding Pay Differences in India,
In India, the main task of the Pay Commission is to examine and suggest modifications to the pay scales for public servants. Although its primary duty does not directly address closing the gender pay gap, its recommendations may impact public sector pay parity. For instance:
Standardized Pay Scales: By establishing standardized pay scales for government employees, the Pay Commission helps decrease inequities in compensation based on gender within the public sector.
Policy Recommendations: The Pay Commission has the authority to suggest policies that advance gender equality and serve as models for other industries, including advocating for equal pay for equal work.
Sustaining Awareness and Implementation: The Pay Commission's recommendations can promote pay fairness by keeping the public informed and encouraging the private sector to adopt similar practices.
On the other hand, more comprehensive laws such as the Code on Wages Act of 2019 and the Equal Remuneration Act of 1976 target the gender wage gap in all industries more directly.
Legal Prospects,
Many countries have laws and regulations that mandate equal pay for equal work. Companies that fail to comply with these laws can face legal consequences and damage to their reputation. India has laws aimed at addressing the gender pay gap, such as the Equal Remuneration Act, 1976, which mandates equal pay for men and women for the same work. However, enforcement and awareness remain challenges.
Addressing the gender pay gap requires concerted efforts from both policymakers and employers to ensure fair and equitable pay practices.
Effectiveness of These Legal Provisions in Practice,
While India has robust legal provisions to ensure pay equity, their effectiveness in practice faces several challenges:
Awareness and Implementation: Many workers, especially in rural areas and informal sectors, are unaware of their rights under these laws. This lack of awareness hinders the enforcement of pay equity provisions.
Enforcement Mechanisms: The mechanisms to enforce these laws are often weak. Insufficient labor inspections and the slow judicial process can delay justice for those facing pay discrimination.
Cultural and Social Norms: Deep-rooted cultural and social norms often perpetuate gender biases in the workplace. These norms can influence hiring practices, promotions, and pay scales, making it difficult to achieve true pay equity.
Informal Sector: A significant portion of India’s workforce is employed in the informal sector, where labor laws are not strictly enforced. This sector often sees higher levels of pay disparity due to the lack of formal contracts and regulatory oversight.
Corporate Practices: While some progressive companies have adopted policies to ensure pay equity, many others lag behind. Corporate transparency regarding pay scales and gender pay audits is still not widespread.
Despite these challenges, there have been positive developments. Increased advocacy and awareness campaigns, along with government and non-governmental efforts, are gradually improving the situation. For instance, initiatives like the Gender Equality Seal Certification by UNDP encourage companies to adopt gender-sensitive practices.
The Supreme Court's Function,
Through a number of channels, the Indian Supreme Court can significantly contribute to closing the gender wage gap.
Judicial Review: The Supreme Court has the authority to examine and construe current pay equity rules to ensure they are accurately and uniformly enforced.
Public Interest Litigations (PILs): The Supreme Court may hear cases brought by individuals or groups seeking to rectify the gender pay gap. These cases can highlight systemic problems and prompt legislative or governmental action.
Rules and Instructions: The Court has the authority to provide rules and instructions to the public and private sectors to guarantee adherence to pay equity legislation.
Monitoring Implementation: The Supreme Court can set up systems to monitor how its rulings and directions are being carried out, ensuring accountability and advancements in reducing the gender pay gap.
Judgements that Set Precedents: The Court has the authority to render landmark decisions that influence lower courts and policy changes. It may, for instance, require the Equal Remuneration Act to be applied more strictly.
Notable Cases:
Air India v. Nergesh Meerza (1981): This historic case addressed gender discrimination in employment terms and conditions. The Supreme Court overturned Air India's policy of terminating air hostesses' services upon their first pregnancy, emphasizing the importance of gender equality in employment practices.
Mackinnon Mackenzie & Co. Ltd. v. Audrey D'Costa (1987): The Supreme Court affirmed the concept of "equal pay for equal work," mandating that female stenographers receive the same compensation as their male colleagues.
Jagjit Singh v. State of Punjab (2016): This case upheld the tenet of "equal pay for equal work," deciding that temporary workers should be paid equally for performing the same tasks as permanent workers. Although not directly related to gender, it has implications for pay equity across different groups.
Vijay Lakshmi v. Punjab University (2003): The Supreme Court addressed discrimination against women in promotions, ruling in favor of Vijay Lakshmi, who had been denied a promotion due to her gender. The Court stressed the importance of non-discriminatory practices in career advancement.
These cases highlight the Supreme Court's involvement in combating workplace gender discrimination and wage parity. The Court's rulings have established important precedents for ensuring equitable and fair treatment in the workplace.
The Supreme Court can, in fact, make a major contribution to the endeavors towards pay parity in India through its judicial authority.
International Efforts in This Direction,
One of the targets of the United Nations Sustainable Development Goal 8 is to “achieve full and productive employment and decent work for all women and men, including young people and persons with disabilities, and equal pay for work of equal value” by 2030. In support of this goal, the Equal Pay International Coalition (EPIC) was launched in 2017 as a multi-stakeholder initiative led by the ILO, UN Women, and the Organisation for Economic Co-operation and Development (OECD), aiming to achieve equal pay for women and men everywhere.
By bringing together a diverse set of actors with different areas of focus and expertise, EPIC supports governments, employers, workers, and their organizations to make concrete and coordinated progress towards this goal. EPIC is currently the only multi-stakeholder partnership working to reduce the gender pay gap at the global, regional, and national levels.
According to the World Economic Forum Gender Inequality Index Report 2024, gender inequality has reduced to 68.5%, showing a marginal 0.1% improvement over the previous year. In terms of global health and survival, the gender gap has reduced by 96%. The educational attainment gap decreased by 94.9%, the economic participation gap decreased by 60.5%, and the political empowerment gap decreased by 22.5%. However, a significant amount of work is still needed to attain true gender equality. The report indicates it will take 131 years to reach parity between men and women, extending beyond the 2030 Sustainable Development Goal (SDG) aim to the year 2158, or five generations.
The gender pay gap remains a deeply entrenched issue in India, reflecting broader social, economic, and cultural disparities. Despite significant legal frameworks and international efforts aimed at achieving pay equity, challenges persist in implementation and awareness.
The gender gap in remuneration violates women's human rights by perpetuating economic inequality and limiting access to opportunities. It hinders their financial independence and social justice, reinforcing systemic discrimination and bias in the workplace.
Closing the gender pay gap is not merely a matter of fairness but a crucial step towards building a just and equitable society. It demands concerted efforts from governments, employers, and individuals alike. By addressing the root causes of pay disparity and promoting equal opportunities, India can move closer to achieving true gender equality and economic justice.
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