Gender pay gap in India
India is increasingly becoming one of the main players in global economic growth.
However, a major challenge for the subcontinent is to reduce strong asymmetries in the labor market.
One of the key issues here is the so-called “gender pay gap”.
The pay gap between men and women had already closed slightly.
It then widened again significantly during the pandemic.
The gender pay gap in India in figures
Although the gender pay gap in India has narrowed over the years, it remains high in international comparison and the gender pay gap is only more pronounced in a few countries – as can be clearly demonstrated by various official figures:
A study by the National Sample Survey Office (NSSO) shows that Indian women earned an average of 28% less than their male counterparts in 2018 and 2019.
This is a significant decrease compared to the difference of 48% in 1993 and 1994.
In India, only 22.3% of women participate in the labor market.
This corresponds to a gender gap of 72% compared to male employees – read in detail in the Gender Gap Report 2021, March, p. 13.
According to the World Inequality Report 2022, men in India earn 82% of labor income, while women (can) only contribute a meager 18% of total earnings.
Gender pay gap: sustainable pandemic effects
The COVID-19 pandemic has once again exacerbated gender pay inequality in India and reversed previous salary convergences within a few months.
During Corona, the pay gap is estimated to have grown by 7% from 2018/19 to 2020/21.
On average, women suffered greater income losses than men.
On the one hand, they were employed in the sectors more affected by losses.
Secondly, they increasingly took on family responsibilities and had to temporarily postpone or completely interrupt their careers to do so.
The “Global Wage Report 2020-21” of the International Labor Organization (ILO) clearly shows that women have experienced a disproportionate decline in total wages during this crisis.
What are the reasons for the gender pay gap in India?
There are many different reasons for the significant pay gap between men and women in India.
It is assumed that these are due to individual characteristics such as education, skills or experience.
Gender-specific characteristics also play a central role in these general salary factors.
Furthermore, the majority of wage inequality can still be attributed purely to gender-based discrimination, according to UN Women in this article.
Gender-based discrimination practices include lower wages for women for work of equal value.
Similarly, work in highly feminized professions also has a lower value in the social context.
An additional factor in India is the maternity pay gap: Compared to women without children, mothers receive lower wages, opening up the gender pay gap even further for them.
Political initiatives against the gender pay gap
At an international level, the United Nations and the ILO are already committed to closing the gender pay gap.
India has also taken some legislative steps – quite early by international standards – including the Minimum Wages Act of 1948, the Equal Remuneration Act of 1976 and the comprehensive reform of the wage code of 2019.
The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) of 2005 and the amendment of the Maternity Protection Act in 2017 are other significant measures.
Unfortunately, these policy efforts have had limited impact so far, and the gender pay gap remains wide.
How will the gender pay gap develop?
Although progress has been made, it will probably be decades before the gender pay gap in India – as in many other countries – is completely closed.
In order to successfully implement ambitious measures, local authorities would need to work effectively with companies from abroad: International employers in India ultimately benefit the most from local pay imbalances.
In Germany, the Supply Chain Duty of Care Act could possibly become relevant here: This requires German companies to ensure adequate wages in their supply chains and to guarantee equal treatment in employment.
(More on this soon in other blog posts!)
Incidentally, we are already working hard with BitColleagues and Omnics to build a more inclusive and fairer working world in India.
In doing so, we also want to make a conscious contribution to closing the gender pay gap.
The salaries we pay are based exclusively on the qualifications and experience of our top employees.
Fair pay for excellent work – for us, this is a matter of course.
If you would like to find out more about the gender pay gap, we recommend the following article:
(arbeitsrechte.de)
