Despite significant strides toward gender equality in various sectors, women around the world continue to face substantial challenges in achieving equal pay for equal work. The gender pay gap, which reflects the difference in earnings between women and men, remains a persistent issue. According to the United Nations, women globally earn, on average, only 80% of what men earn, a disparity that is even wider for women of colour and those in lower-income brackets. This section will explore the challenges women face, the progress made in various countries, and specifically examine India's standing in this critical matter.
| The International Labour Organization (ILO) estimates that women globally continue to be paid about 20% less than men on average. |
Understanding the Gender Pay Gap
The gender pay gap is influenced by several factors, including occupational segregation, discrimination, and differences in work experience and education. Women are often concentrated in lower-paying industries and roles, which increases the pay gap. For instance, in the United States, women make up 77% of the workforce in health care and social assistance but earn only 43 cents for every dollar earned by their male counterparts in that sector.
Moreover, women are underrepresented in management positions, holding only 42% of managerial roles across all industries despite making up nearly half of the workforce. This underrepresentation contributes to the pay gap as leadership roles typically offer higher salaries.
| Globally, the gender pay gap varies significantly across countries, ranging from -0.7% in Luxembourg to 21.3% in Estonia in 2022. |
Global Progress Toward Equal Pay: Country Examples and Statistics
The issue of equal pay for equal work remains a significant challenge worldwide. Various countries have made strides in addressing the gender pay gap, but disparities persist. Below are examples of some countries, along with relevant statistics that illustrate their progress and challenges in achieving gender pay equality.
Table of contents [Show]
1. Iceland
Iceland consistently ranks as the most gender-equal country globally.
Gender Pay Gap | Women earn approximately 87% of what men earn. |
Legislation | In 2018, Iceland implemented a law requiring companies to prove they pay men and women equally for the same work. |
Progress | The country has closed its gender pay gap by 88% as of 2023, according to the Global Gender Gap Report. |
2. New Zealand
New Zealand has made significant efforts to promote gender equality in the workplace.
Gender Pay Gap | Women earn about 90% of what men earn. |
Legislation | The Equal Pay Amendment Bill passed in 2020 aims to ensure equal pay for work of equal value. |
Progress | The country has seen a gradual decrease in the pay gap, which has narrowed from 12% in 2018 to 10% in 2023. |
3. Norway
Norway is known for its proactive policies on gender equality.
Gender Pay Gap | Women earn approximately 87% of what men earn. |
Legislation | The country has implemented mandatory reporting on gender pay gaps for companies with over 50 employees. |
Progress | The pay gap has decreased from 20% in 2000 to 13% in 2023. |
4. Germany
Germany has taken steps to address gender pay disparities.
Gender Pay Gap | Women earn about 80% of what men earn. |
Legislation | The Transparency in Wage Structures Act, enacted in 2017, allows employees to request information on pay structures. |
Progress | The gender pay gap has narrowed slightly from 23% in 2015 to 20% in 2023. |
5. United Kingdom
The UK has made strides in promoting gender pay equality.
Gender Pay Gap | Women earn around 84% of what men earn. |
Legislation | The Gender Pay Gap Reporting Regulations require companies with over 250 employees to publish their pay gaps. |
Progress | The gap has decreased from 27% in 1997 to 16% in 2023. |
6. Canada
Canada has implemented policies to promote gender equality in the workplace.
Gender Pay Gap | Women earn approximately 87% of what men earn. |
Legislation | The Pay Equity Act was updated in 2018 to promote equal pay for work of equal value. |
Progress | The pay gap has narrowed from 20% in 2000 to 13% in 2023. |
7. Australia
Australia has made progress in addressing the gender pay gap.
Gender Pay Gap | Women earn about 86% of what men earn. |
Legislation | The Workplace Gender Equality Act requires large employers to report on gender equality indicators. |
Progress | The gap has decreased from 18% in 2014 to 14% in 2023. |
8. France
France has taken steps to address gender pay disparities.
Gender Pay Gap | Women earn approximately 84% of what men earn. |
Legislation | The "Professional Future" law requires companies to eliminate pay gaps within three years or face penalties. |
Progress | The gap has narrowed from 19% in 2010 to 16% in 2023. |
9. Japan
Japan faces challenges in achieving gender pay equality.
Gender Pay Gap | Women earn about 73% of what men earn. |
Legislation | The Equal Employment Opportunity Law promotes gender equality in the workplace. |
Progress | The gap has remained relatively stable, with only minor improvements over the past decade. |
10. United States
Gender Pay Gap | Women earn about 82% of what men earn. |
Legislation | The Equal Pay Act of 1963 promotes gender equality in the workplace. It prohibits wage discrimination based on sex. It amends the Fair Labor Standards Act and was signed into law by President John F. Kennedy on June 10, 1963. |
Progress | The gap has remained relatively stable over the past two decades. |
- The gender pay gap in the U.S. is smaller for workers ages 25 to 34 than for all workers 16 and older, with women in the younger age group earning an average of 92 cents for every dollar earned by a man in the same age group in 2022.
- Much of the gender pay gap in the U.S. has been explained by measurable factors such as educational attainment, occupational segregation, and work experience.
- Women in the U.S. continue to be overrepresented in lower-paying occupations relative to their share of the workforce, which may contribute to gender differences in pay.
| Factors such as gender discrimination, which are difficult to measure, may also contribute to the ongoing wage discrepancy between men and women. |
While many countries have made progress in addressing the gender pay gap through legislation and policy changes, significant disparities remain. The statistics highlight the ongoing challenges women face in achieving equal pay for equal work. Continued efforts are necessary to close the gap and ensure that women receive fair compensation for their contributions in the workforce.
The Situation in India
In India, the gender pay gap is a pressing issue, with women earning only 63% of what men earn, according to a 2020 report by the World Economic Forum. This gap is influenced by several factors, including societal norms, lack of access to education, and limited opportunities for women in the workforce.
| The gender pay gap is generally much lower for young employees and tends to widen with age, often due to career interruptions women may experience during their working life. |
Key Statistics
| Labour Force Participation: Women's labour force participation in India is significantly lower than men's, at about 22% compared to 75% for men. This disparity limits women's earning potential and economic independence. |
| Wage Disparities: A report by the International Labour Organization (ILO) indicated that women in India earn about 34% less than men in similar roles, highlighting the severe wage disparities that exist. The gap has narrowed slightly from 34% in 2018 to 30% in 2023, but significant disparities persist across sectors. |
| Occupational Segregation: Women in India are often employed in lower-paying sectors, such as agriculture and informal work, which do not provide the same benefits or job security as formal employment. |
Key Insights and Statistics on the Gender Pay Gap in India
| 1. Women in India earn, on average, 63% of what men earn, according to the World Economic Forum's 2022 report. |
| 2. The gender pay gap in India remains high by international standards, despite notable progress over time. |
| 3. As per the National Sample Survey Office (NSSO) data, Indian women earned 48% less than their male counterparts in 1993-94. The gap has since declined to 28% in 2018-19. |
| 4. The COVID-19 pandemic reversed decades of progress, with preliminary estimates from the Periodic Labour Force Survey (PLFS) 2020-21 showing a 7% increase in the gender pay gap between 2018-19 and 2020-21. |
| 5. The gender pay gap in India is influenced by factors such as occupational segregation, discrimination, and differences in work experience and education. |
| 6. In India, women are predominantly employed in the informal sector and often choose home-based employment options to balance domestic duties. |
| 7. Prevailing sociocultural factors, including the increased burden of unpaid domestic work, gender-based skill and educational gaps, digital illiteracy, mobility restrictions, and lack of institutional support at workplaces contribute to the gender pay gap in India. |
| 8. Women in India are often paid less than men for the same job and marginalized in leadership roles, which offer greater compensation and job security. |
| 9. The gender pay gap has persisted in finance, insurance, consulting, healthcare, and transportation industries in India. |
| 10. The share of women legislators, senior officials, and managers in India increased from 14.6% to 17.6% between 2006 and 2021, while the share of women as professional and technical workers grew from 29.2% to 32.9%. |
| 11. Closing the gender pay gap requires a multi-pronged approach that combines legislative reforms, investment in women's education and skilling, support for working mothers, promotion of women in leadership, awareness-raising, and improved data transparency. |
What More Does India Need to Do to Close the Gender Pay Gap?
Despite making some progress in recent years, India still has a long way to go to achieve equal pay for equal work between men and women. The gender pay gap remains high, with women earning only 63% of what men earn on average. To effectively address this persistent issue, India needs to implement a comprehensive set of measures that promote gender equality in the workplace.
| Women in India earn, on average, 63% of what men earn, according to the World Economic Forum's 2022 report. |
Strengthening Legislation and Enforcement
One of the key steps India can take is to enact stronger laws mandating equal pay for equal work and establish penalties for non-compliance. While India has legislation like the Equal Remuneration Act in place, enforcement remains a challenge. The government should consider amending existing laws to make them more robust and effective.
For example, the law could require companies to conduct regular pay audits and publicly disclose their gender pay gaps. Imposing stiff penalties on organizations found guilty of pay discrimination could also serve as a deterrent. Additionally, making it easier for women to file complaints and seek legal recourse in cases of unfair pay practices would empower them to assert their rights.
Investing in Women's Education and Skilling
Increasing access to quality education and skill development opportunities for girls and women is crucial for empowering them to enter higher-paying professions. India should prioritize initiatives that encourage female participation in STEM fields, which are traditionally male-dominated but offer lucrative career prospects.
| The COVID-19 pandemic reversed decades of progress, with preliminary estimates from the Periodic Labour Force Survey (PLFS) 2020-21 showing a 7% increase in the gender pay gap between 2018-19 and 2020-21. |
Scholarships, mentorship programs, and awareness campaigns highlighting successful women in STEM can help inspire young girls to pursue these subjects. Partnering with educational institutions and tech companies to create internship and apprenticeship opportunities for women can also bridge the gap between learning and earning.
Supporting Working Mothers
One of the significant contributors to the gender pay gap in India is the disproportionate burden of unpaid care work that falls on women. Providing affordable and accessible childcare solutions can enable more women to remain in the workforce and advance in their careers after having children.
The government should consider expanding the network of quality, subsidized childcare facilities, especially in urban areas. Offering tax incentives to companies that provide on-site crèches or childcare allowances to employees could also encourage more organizations to support working mothers.
| As per the National Sample Survey Office (NSSO) data, Indian women earned 48% less than their male counterparts in 1993-94. The gap has since declined to 28% in 2018-19. |
Additionally, ensuring that parental leave policies are gender-neutral and adequately compensated can help reduce the "motherhood penalty" that many women face in terms of lower pay and fewer advancement opportunities after taking time off to have children.
Promoting Women in Leadership
Increasing the representation of women in leadership positions is crucial for closing the gender pay gap. When more women occupy senior roles, they tend to advocate for equitable pay practices and serve as role models for other aspiring female professionals.
The government can work with the private sector to set targets for women's representation in management and board positions. Providing leadership development programs, mentoring, and sponsorship opportunities specifically for high-potential women can help build a strong pipeline of female leaders.
Celebrating and recognising companies that have made significant strides in promoting gender diversity in leadership can also incentivize other organizations to follow suit.
| In India, women are predominantly employed in the informal sector and often choose home-based employment options to balance domestic duties. |
Raising Awareness and Fostering a Culture of Equality
Changing deep-rooted societal attitudes and biases that perpetuate gender pay disparities is a long-term challenge that requires sustained efforts. The government, in collaboration with civil society organizations and the media, should launch public awareness campaigns highlighting the importance of equal pay and the economic benefits of gender equality.
Encouraging men to take on a more active role in domestic responsibilities and childcare can help challenge traditional gender norms and enable women to pursue their career aspirations without facing undue obstacles.
Workplaces should also prioritize fostering a culture of inclusion and respect, where women feel valued and empowered to negotiate fair compensation. Providing unconscious bias training for managers and employees can help address ingrained prejudices that may influence pay decisions.
Improving Data Collection and Transparency
To effectively monitor progress and hold stakeholders accountable, India needs to strengthen its data collection and reporting mechanisms on gender pay gaps. The government should mandate regular pay gap reporting by companies above a certain size, with the data made publicly available to enable scrutiny and comparison.
Improving the quality and granularity of labour force survey data, including capturing information on part-time and informal sector workers, can provide a more accurate picture of the gender pay gap across different industries and regions.
| The gender pay gap in India is influenced by factors such as occupational segregation, discrimination, and differences in work experience and education. |
Closing the gender pay gap in India requires a multi-pronged approach that combines legislative reforms, investment in women's education and skilling, support for working mothers, promotion of women in leadership, awareness-raising, and improved data transparency. While the challenges are significant, the potential benefits of achieving equal pay are immense, both in terms of women's economic empowerment and the country's overall economic growth and development.
By prioritising gender pay equality and taking concrete actions to address the issue, India can make significant strides towards creating a more equitable and prosperous society for all.
