Women & Work (India)

Source : IASbaba.com

Behind the Gender Pay Gap

  • India has one of the lowest female labour force participation (FLFP) rates —share of women who are employed or are seeking work as a share of the working-age female population — among emerging markets and developing countries.
  • At around 33 per cent at the national level in 2012, India’s FLFP rate is well below the global average of around 50 per cent and East Asia average of around 63 per cent.
  • An FLFP rate of 33 per cent implies that only 125 million of the roughly 380 million working-age Indian women are seeking work or are currently employed.

Monster Salary Index report on India’s gender pay gap

  • The gender pay gap in India stands at 27 per cent— while men earned a median gross hourly salary of Rs 288.68, women earned only a median gross salary of Rs 207.85 per hour
  • The highest gender pay gap was recorded in the manufacturing sector at 34.9 per cent.
  • The lowest gender pay gap was recorded in the BFSI (banking, financial services, and insurance) and transport, logistics, communication, equally standing at 17.7 per cent each

Information technology (IT) sector: 34 per cent (has increased from around 29 per cent a year earlier)

Several institutions-

  • Prefer male employees over female employees
  • Promote a higher number of male employees to supervisory positions

Companies speak up—

  • Gender pay gap exists because of divided work-family loyalties, as women take more time off from work to care for their families, leading to long career breaks, thus, missing out on the trends and the changed environment.
  • Also, often women lose out through voluntary termination of service at a rate two or three times faster than men once they have attained the experienced, mid-career level— impact on the supply line for higher levels.
  • Almost one-third of women employees showed reluctance and have not resumed work in the absence of a support system at home to take care of the child— Flexible work policies or extended leave, stays minor enablers for those who possess career aspirations in a situation where close to 78 per cent of eligible female graduates choose not to participate in the organised workforce.

Analysis done by Economist Korn Ferry

  • Analysed employees in 33 countries and found that on average, women earn 18 per cent less than men, which is of course higher than the 27 per cent overall industry pay gap mentioned by Monster India.
  • Korn Ferry highlighted — that the United Arab Emirates has a reverse pay gap. Women at the same level, company and function actually earn two per cent more than their male counterparts partly because fewer women (13 per cent) participate in the labour force, and those who do tend to have higher levels of education (Indian IT sector’s gender pay gap seems highly skewed)

Consider the US— For every dollar a man makes in the US, a woman earns just 78 cents for doing the same job.

Monster Salary Index (MSI)

  • It is an initiative by Monster India in collaboration with Paycheck.in (managed by Wage Indicator Foundation) and IIM-Ahmedabad as a research partner.
  • For employers, MSI is an online salary survey that aims to provide employers with practical information and helps them make informed decisions by analysing the salary market and optimizing employee remuneration.

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