Analysing Gender Pay Gap in various industries of India

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Akansha Bhardwaj-BAJMC IVth Semester

sterAccording to the Global Gender Gap Index 2022, out of 146 countries in the world, India ranked at 135^th position conducted by the World Economic Forum. Gender pay gap is a serious problem because it highlights the persistent and unjustifiable disparities in pay based on gender which can have far-reaching implications for individuals, families and society as a whole. In this report, we are going to examine the gender pay gap in various industries such as technology, finance and healthcare and then analyze the extent of the gender pay gap by preferring the salaries of men and women.

Source: World Inequality Report 2022

According to the World Inequality Report 2022, men earn 82% of the labour income in India. On the other hand, it is only 18% for women.

The gender pay gap refers to the difference in average earnings between men and women in the workforce. It is a complex issue influenced by various factors such as occupational segregation, discrimination and differences in work experience and education. It is a measure of what women are being paid in comparison to men. It is normally seen that women are paid less than men for the same work, job and qualification.

The main factors behind the gender pay gap can be considered as –

Education – In many societies, girls are not given the opportunity to go to school or are forced to drop out at a young age. This happens because families may not want to invest in their education and consider them a burden.

Workspace – Even if girls are educated, they often face restrictions in terms of working outside the home. Their families may not allow them to work, and they have very limited decision-making power. Additionally, workplaces may not be supportive of women, and discriminatory practices may prevail.

Household – Girls often face early marriage and are burdened with household responsibilities at a young age. They spend a lot of time on domestic chores instead of pursuing their own goals and aspirations.

Healthcare – Girls may suffer from malnutrition and anemia, which can affect their overall health. They also face challenges related to maternity, taking care of children, and looking after the health of elderly family members.

INDUSTRIES IN WHICH GENDER PAY GAP IS EVALUATED

While it is important to note that the gender pay gap can vary across countries and regions and there may be variations within specific industries as well. This report can provide you with a general overview of gender pay gaps in certain industries based on the available data.

Finance and Banking: In the finance industry, the gender pay gap tends to be significant. According to various studies, women in finance often earn less than their male counterparts. This can be attributed to a variety of factors including a lack of female representation in senior roles and unconscious biases in promotion and compensation processes.

Technology: The technology industry has been widely recognized for its gender pay gap. Women in tech often face lower salaries compared to men and there is a significant underrepresentation of women in technical and leadership positions. Factors such as gender stereotypes, biased hiring practices and unequal access to opportunities contribute to this gap.

Healthcare: The healthcare industry which includes professions like doctors, nurses and other medical professionals has also been reported to have a gender pay gap. While it varies across different healthcare roles and countries, studies have found that male healthcare professionals tend to earn more than their female counterparts.

Legal Profession: In the legal field, the gender pay gap is evident particularly at the highest levels. Women lawyers often face challenges in terms of career progression and access to higher-paying positions. This gap is attributed to various factors including implicit bias, work-life balance issues and a lack of flexible working arrangements.

Entertainment Industry: The entertainment industry including film, television, and music has also faced scrutiny for its gender pay gap. Reports have revealed significant disparities in pay between male and female actors with male actors earning substantially higher salaries in leading roles.

Source: Oxfam’s India Discrimination Report 2022

According to the Oxfam’s India Discrimination Report 2022, the study stated that women have to face biasedness in recruitment and pay both.
According to Economic Survey 2022-23, the female labour force participation rate has increased from 18.6% in 2018-19 to 25.1% in 2020-21.
Self – employed men earn 2.5 times more than self – employed women in urban areas in India.
Women above 15 years of age faced 91.9% gender pay gap in rural India. In urban areas, the percentage is 77.
In the Manufacturing Industry, the gender pay gap is 34.9% which is the highest among all the industries in India.
The percentage of women’s share of annual labour income is 18% in the year 2022 while it is 82% for men.
According to the National Sample Survey 2018-19, the percentage decline in gender pay gap in India is 28%. It was 48% in 1993-94.
India ranked at position 140 out of 156 countries for gender pay gap in the year 2021 as per the Global Gender Gap Index 2021.
As per the study by ILO (International Labour Organization), it will take 70 years to fulfil the gender pay gap by India.

Source: Deloitte, 2019

Source: Periodic Labour Force Survey Annual Report 2020-21

According to the Periodic Labour Force Survey Annual Report 2020-21, the labour force participation rate in Indian women was 23.15% and men was 57.75%.

Source: National Family Health Survey (NFHS) 2019-21

According to the National Family Health Survey (NFHS) 2019-21, 25.2% women had job in their hands while 74.8% of men were employed.

Impact of Covid-19 on Gender Pay Gap

The women have been affected the most due to covid-19 in terms of income security as they have not only job to do but also the responsibility of house and family. The increase in percentage in the year 2018-19 and 2020-21 is 7% which was said that it was due to covid-19 as per the Periodic Labour Force Survey.

Steps taken by India

India has taken several steps to address the gender pay gap and promote women’s empowerment.

In 1948, the Minimum Wages Act was enacted to ensure that all workers, regardless of their skill level, receive a fair and decent minimum wage.
The Equal Remuneration Act of 1976 aimed to eliminate discrimination by ensuring that men and women receive equal pay for equal work.
The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) introduced in 2005 helped raise rural wages, benefiting women workers and reducing the gender pay gap.
The Maternity Benefit Act was amended in 2017 to increase paid maternity leave for women employees, reducing the pay gap experienced by working mothers.
The Skill India Mission focuses on providing women with relevant skills to bridge the gap between learning and employment, further addressing the gender pay gap.
In 2019, India enacted the Code on Wages to bring about comprehensive reforms in labor legislation.
Closing the gender pay gap is important for social justice and economic growth, and ongoing efforts are needed to ensure equal pay for work of equal value.

The gender pay gap is a complex issue influenced by societal norms and biases. Solutions include promoting pay transparency, addressing bias in hiring/promotions, supporting work-life balance, investing in education, and challenging stereotypes. It is challenging to predict when it will be completely resolved, requiring ongoing efforts from various stakeholders but it would definitely be gone from the country if continuous efforts are made by the government with the support of the people.