By Priyanshu Kamble & Parul Oberoi
In 2024, the World Economic Forum ranked India 129 of 146 countries in gender parity. Despite gains in political representation, the gender pay gap remains stark. Women in India earn about 30% less than men for the same job, among the widest gaps in Asia. This divide in income is not purely an economic question, but also an illustration that has deeply rooted discriminatory barriers in education, employment, social norms, and economic activities that constrain women’s economic autonomy.
Why does the gap persist?
At first, the assumption could be wage discrimination — women being paid less and the same jobs done by men. But the reason is much deeper and more complex. Economists point to three main factors:
>> Occupational segregation – Women tend to be more concentrated in lower-paid and ‘feminized’ jobs like teaching and taking care of the elderly and secretarial services, while men hold the more lucrative, technical, and managerial positions. For example, women are only about 15% of the STEM workforce in India, and that is disproportionate, considering that they are nearly 50% of the STEM graduates.
>> The motherhood penalty – Child care responsibilities lead to career breaks, and that, in turn, causes stagnation in wages and loss of opportunities for higher positions.
>> The glass ceiling – Women are underrepresented in leadership positions even after they secure formal, good-paying jobs. The ILO has reported that in India, women hold only 18% of the senior and managerial positions.
The pay gap is more complex than unequal wages for the same work; it is about the barriers placed on women and which jobs they can get.
The costs of inequality
The gap in wages has far more serious repercussions than simply women’s wages. Every time a person’s skill set is not fully utilized, it is not only that person who suffers. The McKinsey Global Institute has predicted that India would have an additional $770 billion in GDP by 2025, only by narrowing gender disparity at work. However, the attitude of the policies designed to treat women’s work as a matter of “social concern” instead of as a matter that drives productive growth.
Women’s work suffers from a lack of understanding. A lack of autonomy characterizes the cycle of disempowerment. Lower-income women have little to no bargaining power in the home, which in turn lowers the willingness to invest in daughters’ education, and increases the tendency to fall back on cultural norms that state that men are the ‘breadwinners’. One could state that the gender pay gap is an even more complicated issue. It is the very cause of gender disparity, and at the same time, it is also a consequence.
Gender policies: Progress or pretence?
The government of India has acknowledged issues of equal pay on paper for several decades. The Equal Remuneration Act (1976) mandated equal pay for equal work. More recently, the Code on Wages (2019) reiterated this principle. Yet enforcement remains weak, especially in the informal sector where over 80% of Indian women work.
Some corporate initiatives — such as internal pay audits and mentorship programs have shown promise, but they are patchy and largely restricted to multinational firms. Gender pay reporting, a common practice in the UK and EU, is not mandatory in India. Without transparency, biases remain hidden behind opaque salary structures.
What must change?
Combating the gap in gender-related compensation involves more than symbolic legislation or token corporate commitments. It necessitates a broad and multi-sided approach:
>> Compensation disclosure and reviews – Authorities must compel firms of a size above a certain level to make a yearly gender pay report. Public reporting not only keeps firms on their toes but also gives women the information that empowers them to demand fair remuneration. The UK’s mandated gender pay reporting (since 2017) has forced many firms to restructure advancement and recruitment policies.
>> Revaluing ‘feminized’ professions – Care responsibilities push many women into career breaks and low-paid, feminized sectors like teaching, caregiving, and nursing. This “motherhood penalty” not only stalls wages and advancement but also undervalues essential work. Without investment in care infrastructure and fair wages, women’s labor force participation will remain among the lowest in the G20.
>> Forthcoming promotion paths and parental leave renewal – Not only wages, but also who gets ahead in institutions, must be addressed by closing the gap.
Institutionalizing mentor programs, targets for leadership, and transparent promotion criteria are a necessity. Redesigning parental leave is just as important. India has a 26-week maternity leave policy, yet lacks meaningful paternity leave. That, aside from excluding women from leadership tracks, solidifies stereotyping around caregiving as “women’s work”. Parental leave policies that are joint, as seen in Scandinavian countries, balance caregiving roles.
>> Sector-specific interventions – Women-sensitive skilling in STEM and digital areas is at the heart of making sure that women are not left behind in the AI and automation era. As women comprise only 28% of the worldwide AI labor force, India risks repeating old injustices in newer industries.
The invisible barriers
Policies and corporate measures will fail unless social norms change. Families often discourage women from pursuing ‘male-dominated’ careers or relocating for jobs. Women are judged for prioritizing work over household duties, while men are rarely questioned for the opposite. The result is a double standard that silently enforces the pay gap.
Media campaigns, educational curricula, and workplace awareness initiatives possess the capacity to confront these biases. However, the most significant cultural transformation will occur when women’s earnings are perceived not as ‘supplementary’ but rather as integral to both familial well-being and national development.
A call for action
India is at a turning point. The economy is becoming more diverse, digital jobs are on the rise, and global value chains are transforming. But if the gender gap in compensation endures, India will face the future with half its economic engine performing below potential.
It requires political bravery on the part of policymakers, corporate receptiveness, and persistence on the part of civil society. It’s a question not just of equity, but of national resolve. Ensuring equal pay for women is not an act of charity but a driver of growth. Fair wages strengthen households, enhance corporate performance, and fortify India’s economy.
The pressing question remains: Can India afford to leave this gap unaddressed?
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(Priyanshu Kamble is a student of Economics, and Parul Oberoi is an Assistant Professor of Economics at CHRIST (Deemed to be University), Delhi NCR)
The views expressed are not necessarily those of The South Asian Times
