A Quintessential Conversation: Gender Pay Parity for India’s Diverse Landscape

‘Pay parity isn’t just about wages — it’s about valuing every woman’s contribution equally in a society. True progress demands that we not only close the economic divide but redefine how we recognise, measure, and celebrate the worth of women’s work across every sector.’

Gender pay parity is not merely an economic issue but a multifaceted challenge shaped by cultural, social, and geographical factors across India’s diverse landscape. Pay Parity Day (18 September 2024) serves as a critical reminder that achieving gender pay parity demands a comprehensive, data-driven approach. It must become a national priority, involving unified stakeholder engagement, heightened accountability, and effective policy implementation. As we pursue true gender equality, the ongoing struggle for financial liberation for women highlights the urgent need for transformative action and systemic change.

This article delves into the causes of the gender pay gap, examines India’s complex landscape, and presents research-based recommendations to foster a meaningful dialogue on wage equality and drive actionable change.

The Gender Pay Gap: A Persistent Concern in India

The gender pay gap, where women are paid less than men for the same role, is a global concern and deeply ingrained in India’s workforce. Ranked 135 out of 146 countries in the Global Gender Gap Index (2022) by the World Economic Forum, India faces a substantial disparity in labour income: men earn 82%, while women earn only 18% (World Inequality Report, 2022). The Periodic Labour Force Surveys (2019-2023) reveal this gap across all employment forms, with the self-employed facing the widest divide — 2.8 times more earnings for men. Despite some progress for regular wage workers, India’s gender pay gap continues to remain a significant issue (How big is the gender gap in earnings?).

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Unearthing the Intricate Layers of the Gender Pay Gap in India

The gender pay gap in India is a multifaceted issue driven by structural and cultural factors, compounded by intersectional dimensions.

• Occupational Segregation: Women in India are often clustered in undervalued sectors such as education, healthcare, and social work. The Periodic Labour Force Survey (PLFS) 2022 highlights that these fields are typically less compensated compared to male-dominated sectors like engineering and finance, PLFS 2022 Report.
• Educational Attainment vs Job Roles: Despite constituting 48% of higher education enrollments as per the All India Survey on Higher Education (AISHE) 2021-2022 women frequently find themselves in lower-paying roles. Advanced degrees do not always translate into higher earnings or career progression.
• Gender-Based Dynamics and Workplace Discrimination: Gender biases in hiring and promotions significantly affect wage parity. Research by McKinsey & Company (2023) reveals entrenched discriminatory practices that hinder women’s career advancement and equitable pay.
• Part-Time and Informal Work: A significant number of women work in informal or part-time roles, which are less secure and lower-paid. The International Labour Organization (2022) notes that these jobs often lack essential benefits and job security, contributing to the gap.
• Career Breaks and Maternity: Career interruptions due to maternity and caregiving can slow professional growth and reduce income potential. NITI Aayog (2023) underscores the long-term impact of such breaks on women’s earning capacity.
• Negotiation and Bargaining Power: Social norms often discourage women from negotiating salaries, resulting in lower initial pay and fewer raises over time. This issue is particularly pronounced in India, as noted in the global context by Harvard Business Review (2022).
• Lack of Women in Leadership Roles: Women’s underrepresentation in executive roles exacerbates the pay gap. Despite significant workforce presence, women hold only 17% of executive positions, with female CEOs often earning less than their male counterparts, according to Deloitte (2023).
• The Urban-Rural Divide: The gender pay gap is also intensified by the urban-rural divide. Over 60% of rural women work in informal sectors, facing weak enforcement of wage laws and minimal benefits. Cultural norms and limited educational access further restrict their entry into better-paying jobs, as detailed by the International Labour Organization (2022).

‘To tackle India’s gender pay gap effectively, we must expand our focus beyond women to include the full spectrum of gender-related issues, such as caste, class, and disability. Understanding these intersections and overcoming data constraints will enable us to create holistic solutions, fostering genuine equity and reshaping the future of our economy.’

Current Efforts and Systemic Gaps in Addressing Gender Pay Parity in India

• Weak Legal Enforcement: India’s legislative framework includes several key laws designed to promote gender pay parity and workplace equality. The Equal Remuneration Act (1976) mandates equal pay for men and women performing the same work. The Maternity Benefit Act (1961) ensures paid maternity leave, aiming to prevent career disadvantages due to childbirth. The Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act (2013), commonly known as the POSH Act, protects women from workplace harassment, contributing to a safer work environment. The Code on Wages (2019) consolidates wage laws to address pay disparities and enhance compliance. The Companies Act (2013) mandates gender diversity policies at the executive level. While these laws form a robust framework for promoting pay parity, enforcement gaps and inconsistent compliance hinder their effectiveness.
• Informal Economy Challenges: In India, over 60% of women work in the informal economy, where legal protections are scant and pay disparities are stark (International Labour Organization, 2022). This sector, marked by inadequate working conditions, low wages, and minimal social security, perpetuates systemic gaps in pay parity, exacerbating gender inequality.
• Cultural Barriers: In India, entrenched societal norms that devalue women’s work perpetuate gender discrimination and undermine pay parity. These deep-rooted cultural attitudes, which often regard women’s contributions as secondary, persist despite legislative progress.

‘To bridge gender pay gaps, a mindset shift is essential. Only through unified efforts of Samaaj, Sarkaar, Bazaar — enforcing laws and challenging deep-rooted cultural biases — can we overcome systemic barriers and achieve true equality.’

Recommendations to Address Systemic Gaps and Achieve Pay Parity

1. Strengthen Legal Frameworks: Enhance the enforcement of the Equal Remuneration Act and related laws by imposing stricter penalties for non-compliance. Establish independent oversight bodies to ensure rigorous adherence to these regulations, aligning with global standards for gender equality.
2. Support the Informal Sector: Extend legal protections and improve working conditions for women in the informal economy. Implement minimum wage regulations and provide social security benefits to bridge the gap between formal and informal sectors (International Labour Organization, 2022).
3. Promote Corporate Transparency: Encourage companies to adopt pay transparency policies and conduct regular pay equity audits. Transparent salary practices ensure equitable compensation based on objective criteria (Harvard Business Review, 2022).
4. Advance Women in Leadership: Invest in targeted mentorship and leadership development programs to increase female representation in senior roles across all sectors, including the social sector to elevate women in decision-making positions (Deloitte, 2023).
5. Foster Cultural shift: Launch nationwide campaigns and educational initiatives to transform societal attitudes towards women’s work. Engaging both public and private sectors is crucial to foster a culture that values gender equality to accelerate strong, sustainable, balanced and inclusive growth.

Conclusion

As India advances its national mission for equity, aligning with the G20 Summit and SDG 5, closing the gender pay gap is crucial. Prioritising women’s participation in decision-making roles and addressing systemic barriers will drive economic growth and social equity, advancing progress toward the 2030 Agenda and fostering global resilience.

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