Gender Pay GAP
- Despite being known for its structural reform narrative, asymmetries exist in the labour market, which is not surprising given the size and variety of the nation. These differences have gotten exacerbated since the pandemic’s start. Third International Equal Pay Day, which will be held on September 18, 2022, to raise awareness of the issue of gender parity in pay, assumes a special relevance in this context.
How big is India’s gender wage gap?
- India is ranked 135th out of 146 nations for gender parity in the World Economic Forum rankings. Only 11 ranks separate this from Taliban-run Afghanistan, where women are not even permitted in schools. This is concerning given that India was rated 87th only six years ago (2016).
- According to the WEF, closing the gender gap across the greater South Asian region could take up to 200 years.
- Although India has a large gender pay gap in comparison to other countries, there has been significant progress in closing the gap. In 1993-1994, women made 48% less money than males did on average. According to data from the National Sample Survey Office’s labour force survey, this disparity had decreased to 28% in 2018–19.
- However, the pandemic crisis has undone decades of advancement. According to early projections from the Periodic Labour Force Survey 2020–21, the gender wage gap widened by 7% between 2018–19 and 2020–21.
- According to the data, women’s pay declined more quickly than men’s wages increased, which may have contributed to the gap’s widening. During the pandemic, women received disproportionately fewer income raises and bonuses.
- This growing discrepancy was also documented in the ILO’s Global Wage Report 2020–21. It was implied that the pandemic had caused a significant downward pressure on salaries, which had a disproportionately negative impact on female workers.
Why is there a growing gap?
- Education, experience, and talents are examples of personal traits that influence the gender pay gap. However, a sizable portion of the disparity can be directly linked to gender inequality.
Discriminatory acts based on gender include:
- Lower pay for equally valuable job.
- Undervaluation of labour in businesses and professions where women predominate.
Mothers’ wage gap:
- Mothers earn less money than non-mothers do.
- In terms of income and employment losses, the pandemic has had a disproportionately negative impact on female employees. This is due to:
- Their substantial presence in the pandemic’s hardest-hit industries.
- The gendered separation of duties in the home.
Child care:
- geriatric care (who are particularly at risk from COViD-19), etc.
What actions were taken?
- Legislative solutions to narrow the gender pay gap, particularly at the bottom end of the salary scale
- The 1948 Minimum Wages Act
- 1976’s Equal Remuneration Act
- Wage codification
- MGNREGS has benefited rural Indian women and helped close the gender pay gap.
- Women who work in agriculture are benefited indirectly by the MGNREGS-driven rapid growth in overall rural and agricultural salaries.
- The Maternity Benefit Act of 1961 was changed in 2017 to extend the period of paid maternity leave for women working in companies with 10 or more employees from 12 to 26 weeks. Mothers earning median and high wages in the formal sector gain from this.
- Through the Skill India Mission, women are receiving training in marketable skills.
- By 2030, “full and productive employment and decent work for all women and men, especially for young people and persons with disabilities, and equal remuneration for work of equal worth” are to be attained, according to UN SDG 8. In accordance with this, the EPIC/ Equal Pay International Coalition was established in 2017. It is a multi-stakeholder project that includes the ILO, OECD, and UN Women.
- In order to address gender discrimination and achieve gender equality, the CEDAW (Convention on the Elimination of All Forms of Discrimination Against Women) provides an international legal framework.
What should be done?
- A human-centered recovery plan is required to promote productive and fair economic growth. Here, closing the gender pay gap and enhancing women’s employment prospects would be helpful.
- The gender pay gap would take more than 70 years to close at the current rate. Accelerated and decisive action is required to stop the gender wage gap from growing and finally closing.
- Taking the following actions could aid in closing the gap:
- Hiring more women for various positions.
- Developing job opportunities can aid in keeping women in the workforce.
- Periodic analysis of wage data by gender to look for disparities.
- Examining potential biases, especially at the highest levels of the organisational hierarchy.
- To realise the “same compensation for work of equal value” principle, stated in the ILO’s Constitution, more worldwide collective commitment is required.
Conclusion:
- The ‘equal pay for equal work’ premise must remain central if the gender pay gap is to be closed. In order to achieve social fairness for women and national economic progress, the gap must be closed.
