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Gender Based Wage Gap is still High in India. Here's why We Should Change that

Gender Based Wage Gap is still High in India. Here's why We Should Change that
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Gender pay gap is defined as the difference between male and female earnings expressed as a percentage of male earnings. For example if we say a woman in a country earns only 77 cents for every dollar a man earns, there is a gender wage gap of 23%. On the surface, statistically speaking, most individuals believe their company/nation does not have discriminatory wage gaps and practices at all, but this is unfortunately far from true. India ranks sixth at the Gender wage pay gap, and despite showing progress in coming down to 40% in 2011 from 70% in 2008 still has a long way to go.

Gender pay gap changes with increase in wages

For wages below Rs1 Lakh and above Rs 50 Lakhs, the gender pay gap is negligible. However, for the wage group between Rs 1 Lakh to Rs 50 Lakhs the gender pay gap is above 40%. 

Image source: .paycheck.in

Gender pay gap Increase with age

The gender pay gap is highest for the age group 50-60 years at 157% and lowest for the age group 20-30 years at 38%. Surprisingly, as education level increases, the gender pay gap increases. The gender pay gap is lowest for 10th +2 or equivalent education level at 11.54% and is highest for Post Doctoral Education level at an alarming 180%. These statistics present disheartening statistics that sexism is deeply engraved in the work culture in India and the older generations are worse off affected.

Image source: .paycheck.in

Even same educational qualifications don’t stop gender wage gap

Data reveals that men and women with same work experience are not paid equally. Gender pay gap is low at junior level and high at senior levels. 

Image source: .paycheck.in

Gender pay gap also depends on the occupation

The extent of gender pay gap also depends on the occupation. For example, Paycheck data shows that the gender pay gap is highest for health professionals at more than 65%. It is lowest for cleaners and helpers under elementary occupations at just a little above 1%. It is also worthy to note that the gender pay gap is remarkably low for information and communication technicians at only 4.37%. 

Image source: .paycheck.in

Marital status affect gender pay gap

Marital status is also one of the factors for gender pay gap. For women who were single, the gender pay gap is the lowest at 27%. It increases for married women and divorced women at a little above 40%. It is highest for widowed women at more than 60%.

The opposite of several developed nations, the high potential women in India’s technical technology organizations surveyed started their careers in similar positions, have similar levels of responsibility, and earn comparable salaries as men. Almost 4/5 women at the beginning of their career aimed to eventually become the CEO of the company. It’s about time we discuss bridging gender disparity together.

Image source: .paycheck.in

Several factors can be suggested to combat this:

  • Employers that openly discuss salaries and make it know to their employees not only promote trust but also encourage hard work for peers to strive to reach a higher level. Team work is improved and a more dedicated staff reduces office politics providing a healthy environment for employees to grow and nurture.
  • Making transparent and equal wages to all genders not only increases the PR of the business, but also boosts employee morale. Knowing fellow employees and receiving equal pay for equal work and are happy promotes a positive environment for everyone.
  • Transparent growth policies
  • Include on-job development programs

What do you think of the wage gap in India? let us know in the comments on our official Facebook page, Entreprenuer India 

Edition: December 2016

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