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The Gender Wage Gap


Despite global progress in women's rights and workforce participation, the gender wage gap continues to be a persistent issue. Women, across industries and geographies, often earn significantly less than men for doing the same or equivalent work. This disparity is rooted in a mix of historical, structural, and cultural factors — and solving it is key to achieving true gender equality.




Global & Indian Wage Gap Statistics

Global Perspective:

  • As per the International Labour Organization (ILO), women globally earn 20% less than men on average.

  • The World Economic Forum's Global Gender Gap Report 2024 estimates that at the current rate, it will take over 130 years to close the global wage gap.

  • In OECD countries, the average gender pay gap is 13%, even when comparing men and women with similar education and experience levels.

🇮🇳 India-Specific Data:

  • According to the Monster Salary Index (2021), Indian women earn 19% less than men for the same work.

  • The average hourly wage for men in India was ₹242.49, while women earned ₹196.3.

  • The gap is even wider in sectors like manufacturing (24.8%), IT (26.1%), and financial services (21.5%).

Root Causes of the Wage Gap

  1. Occupational Segregation: Women are overrepresented in low-paying industries and underrepresented in leadership and STEM roles.

  2. Unpaid Care Work: Women disproportionately shoulder domestic responsibilities, limiting career advancement.

  3. Lack of Pay Transparency: In many workplaces, wages are not disclosed or discussed, making it easier for discrimination to persist.

  4. Bias and Discrimination: Both conscious and unconscious biases in hiring, promotions, and salary negotiations contribute to wage differences.

  5. Motherhood Penalty: Women are often penalized in hiring and pay because of assumptions related to pregnancy or child care.

Consequences of the Wage Gap

  • Economic Insecurity: Women have less financial independence, especially in retirement.

  • Poverty Cycle: Single mothers and women-headed households are more likely to live in poverty.

  • Mental Health Impact: The undervaluation of women's work can lead to anxiety, stress, and reduced motivation.

  • Wider Gender Inequality: Wage disparity is symptomatic of larger systemic gender biases.

Solutions to Bridge the Gap

Pay Transparency Laws: Countries like the UK and Germany have implemented reporting mechanisms. India can adopt similar frameworks for accountability.
Skill Development & Career Progression: Encourage women in tech, STEM, and executive roles through scholarships, mentorship, and upskilling programs.
Workplace Audits & Gender Equality Indexing: Regular salary audits can identify and address pay gaps.
Strengthening Maternity and Paternity Policies: Promoting shared parental responsibilities can reduce the motherhood penalty.
Equal Opportunity Laws & Enforcement: Stricter implementation of anti-discrimination laws and ensuring compliance in both public and private sectors.

Legal Protections and Support

Relevant Indian Laws:

  • Equal Remuneration Act, 1976: Prohibits discrimination in wages and recruitment on the basis of gender.

  • Code on Wages, 2019: Promises equal pay for equal work across all sectors (yet to be fully implemented nationwide).

Helpline Numbers & Support Resources:

  • National Commission for Women (NCW): 7827-170-170 (24x7 helpline for workplace discrimination)

  • Ministry of Labour & Employment – Public Grievance Portal: pgportal.gov.in

  • SHEROES Women Helpline: Chat-based support via SHEROES app

  • ILO India Office: ilo.org/newdelhi

Conclusion

The gender wage gap isn't just a women's issue — it's a societal and economic problem. Eliminating it can add trillions to the global economy and uplift millions of families. For India, empowering women with equal pay can significantly boost GDP and drive inclusive growth. Bridging this gap requires joint action from employers, governments, and communities. Equal pay is not a privilege — it's a right.

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