Gender Pay Gap In India: Challenges, Progress & The Path Forward

We are in the 21st century, but still, women face this gender pay gap. The gender pay gap is the disparity between what men and women earn, and it is not a new problem; it's a chronic and widespread problem worldwide. This disparity obstinately endures, impeding economic growth and real gender equality despite notable advancements in women's education, employment, and legal rights. Despite being oversimplified as “women earning less than men for the same work,” the truth is much more nuanced and firmly anchored in systemic injustices, societal institutions, and unconscious biases. This article explores the many facets of the gender pay gap, identifying the different causes that contribute to its persistence and providing practical solutions for closing it.

What is the gender pay gap and how it is measured?

The gender pay gap refers to the difference in earnings between men and women. It's often expressed as the ratio of women's earnings to men's earnings. The gender pay gap is a complex issue with many contributing factors. Some of the factors include occupational segregation, discrimination, and work-life balance. Understanding the gender pay gap requires distinguishing between two key metrics. The raw or unadjusted pay gap, often cited as a percentage (e.g., women earning 84 cents for every dollar earned by men), compares the median earnings of all men and women, regardless of factors like occupation or experience. While this metric highlights the overall disparity, it doesn't account for the complexities influencing earnings.

The adjusted pay gap, conversely, attempts to control for such factors as job title, experience, education, industry, and hours worked, aiming to isolate the pay difference between men and women in similar roles with similar qualifications. Though smaller than the raw gap, the persistent adjusted pay gap suggests that factors beyond easily quantifiable variables contribute to the disparity.

The Gender Pay Gap: A confluence of factors demanding multifaceted solutions

The gender pay gap persists due to a complex interplay of factors, including occupational segregation where women are concentrated in lower-paying fields; the motherhood penalty, which disadvantages mothers due to career interruptions and employer biases; negotiation gaps, where women are less likely to negotiate salaries and may face penalties when they do; limited access to promotion and leadership opportunities due to the “glass ceiling” and biases; the impact of implicit bias on hiring and evaluation processes; a lack of compensation transparency that hinders fair pay assessments; disproportionate caregiving responsibilities placed on women; and, though illegal, the continued existence of discriminatory practices.

Steps taken by India to fix Gender Pay Gap

To reduce the gender pay gap, particularly at the lower end of the wage distribution, India has implemented several legal actions. In this sense, Ireland was among the first nations to pass the Equal Remuneration Act in 1976 after the Minimum Wages Act was passed in 1948. India implemented extensive legislative revisions and passed the Code on Wages in 2019.

The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), which was passed in 2005, has both direct and indirect benefits for rural women workers and contributed to the closing of the gender pay gap. Indirectly, women in agricultural jobs benefited from better earnings as a result of MGNREGA's contribution to the nation's sharp increase in rural and agricultural wages, and directly, by increasing the pay levels of women workers who took part in the program.

The Maternity Benefit Act of 1961 was changed by the government in 2017, extending the duration of “maternity leave with pay protection” for all women employed by businesses with ten or more employees from 12 to 26 weeks. The maternal pay gap between mothers in the median and high-end wage earners in the formal economy is anticipated to narrow as a result.

In addition to enabling laws, the Skill India Mission is working to give women marketable skills to bridge the gender pay gap and the learning-to-livelihood gap. Even while the gender pay gap is gradually closing, it will take more than 70 years to close entirely at the current rate of advancement. To close the gender wage gap and stop it from growing, swift and decisive action is required.

Achieving "full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value" by 2030 is one of the objectives of the UN Sustainable Development Goal.

Bridging the gap: A multi-pronged approach

Addressing the gender pay gap demands a multifaceted approach involving individuals, organizations, and governments. Key strategies include enacting and enforcing strong equal pay laws, promoting transparency in compensation, and regularly auditing pay scales to identify and correct disparities. Combating occupational segregation by encouraging women's participation in STEM fields and fairly compensating traditionally female-dominated jobs is crucial. Supporting working parents through paid leave, affordable childcare, and flexible work arrangements helps reduce the "motherhood penalty."

Addressing implicit bias through training and reviewing organizational processes promotes equitable decision-making. Empowering women to negotiate salaries, promoting women in leadership through mentorship and sponsorship, and increasing compensation transparency are also essential. Furthermore, addressing the caregiving burden through investment in affordable childcare and eldercare, alongside enacting legislation promoting gender equality, such as mandatory pay audits and paid family leave, is vital for achieving pay equity.

Beyond the numbers: A call for cultural shifts

Ultimately, bridging the gender pay gap requires a fundamental cultural shift. We need to challenge deeply ingrained societal stereotypes about gender roles and expectations, promote a more equitable distribution of caregiving responsibilities, and create a workplace culture that values and respects the contributions of all employees, regardless of gender.

The gender pay gap is a complicated issue with many facets that call for an all-encompassing and persistent effort to resolve. We can get closer to a day when women are fairly compensated for their labor and have equal opportunities to realize their full potential by comprehending the different contributing elements and putting evidence-based measures into practice. Fairness is only one aspect of this issue; other issues include social justice, economic prosperity, and building a society in which all people can prosper. True gender equality in the workplace is a continuous process, but with dedication, awareness, and action, we can eventually bridge the gap and build a more just future for everybody.

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