An economically strong and independent woman contributes significantly to households, communities and the nation—both financially and socially. Gender equality is not a seasonal topic but a critical issue that affects GDP, parity indices and overall economic growth. Research shows that women in India perform 9.8 times the unpaid labor that is typically measured; if valued and included, that work could add an estimated $0.3 trillion to India’s economy.
As International Women’s Day approaches, debates about women’s empowerment and equal rights resurface, highlighting the realities women face across India. Women not only experience social and cultural disadvantages but also face persistent disparities in pay and workforce participation. This article addresses five key questions about the gender pay gap and gender parity in India’s workforce.
India’s position on the world map
India ranks among the bottom ten countries globally for financial independence and economic opportunities for women. According to a World Economic Forum report:
- India ranked 108th out of 149 countries for economic participation.
- For wage equality for similar work, it was at 72nd.
- On the economic opportunity and participation subindex, it ranked 142nd.
These statistics highlight the challenges Indian women face daily and reflect deep-rooted cultural, social and familial constraints. Women make up 48% of the population but only about one-quarter of the workforce. The disparity between wage equality and economic opportunity stems partly from how the gender pay gap and unequal pay are measured.
Gender Pay Gap
The gender pay gap is the difference in earnings between women and men in paid employment. A recent Monster Salary Index report found that women in India earn about 19% less than men—men earning INR 242.49 on average compared to INR 196.30 for women. This represents only a 1% improvement over the previous year, underscoring slow progress and limited attention to gender parity by many employers.
~ Ruth Bader Ginsburg
As Abhijeet Mukherjee, CEO of Monster.com APAC & Gulf, observed: “The narrowing of the gender pay gap by just one percent is not just a cause for concern, but a reminder to genuinely introspect if we are doing enough.”
The index further breaks down the gap:
- The wage gap disappears in some unskilled sectors but increases with higher skill levels.
- Skilled workers face about a 20% pay gap.
- Highly skilled positions report gaps around 30%.
- For jobs requiring 10 or more years of experience, the gap favors men by about 15%.
Discrimination at Work
The gender pay gap is mirrored by workplace discrimination. The annual “Women of India Inc.” survey revealed several concerning trends in professional life:
- 60% of women reported experiencing discrimination at work.
- About one-third felt women are not readily considered for top management roles.
- 71% of men and 66% of women surveyed said they support gender equality in the workplace.
Pay differences vary across sectors:
- IT/ITES: 24%
- Healthcare and social work: 21%
- Manufacturing: 24%
- Banking and financial services: 2%
Barriers hindering equal participation
Traditional cultural norms in India often place men at the top of household hierarchies, influencing women’s career choices and limiting opportunities. Some of the main barriers include:
- Limited financial independence and reduced access to credit for women entrepreneurs.
- Fewer educational and career opportunities for girls in many regions.
- Property and inheritance norms that disadvantage women economically.
- Safety concerns: 86% of women cite safety as a key factor affecting career choices; 51% find night shifts unsuitable.
- Patriarchal attitudes that make male colleagues uncomfortable with female supervisors.
- Inadequate maternity and childcare provisions.
Culturally, men are often expected to be breadwinners while women manage the home. On average, women spend roughly two-thirds of their time on unpaid work compared with one-fourth for men. These expectations push many women into lower-paying or part-time roles after marriage or childbirth and limit long-term career progression.
Legislative protections
The Equal Remuneration Act of 1976 guarantees equal pay for men and women and aims to prevent gender-based discrimination in formal employment. While this law provides protection in formal sectors, a large share of women work in informal sectors such as agriculture and construction, where enforcement is weak.
India has been a member of the ILO governing body since 1922, committing to align national laws and policies with standards that guarantee equal remuneration regardless of gender. The Constitution’s Article 39 also envisions equal pay for equal work. Despite these provisions, practical equality remains elusive. For example, the parliament has not yet enacted a 33% reservation for women in the Lok Sabha.
Many organizations are introducing policies to create fairer workplaces. Achieving gender parity and addressing pay gaps supports sustainable growth for companies and broader economic development. Financial inclusion, equitable access to education and career opportunities can unlock the full potential of the female workforce and drive social uplift.
We at EarlySalary aim to support financial inclusion by offering borrowing options irrespective of gender. Salary advances and affordable loans can help bridge credit gaps and ease financial pressures with minimal hassle, supporting individuals as they pursue career and personal goals.