Gender pay gap in India refers to the difference in earnings between women and men in the paid employment and the labor market.
Some of the main factors that contribute to the existing gender pay gap in India are: The rate of female participation in the paid labor market is generally low, and is primarily concentrated in rural areas in the agricultural sector.
Certain activities in agriculture have been assigned specifically to women, like drying and storing the grain, while other tasks like plowing and harvesting are only performed by men.
[8] Studies have also found that more than sixty percent of contributing factors of gender pay gap in India stem from pure labor market discrimination, with the gap steadily decreasing on moving towards higher end of wage distribution, pointing out towards the existence of 'sticky floors' in the Indian labor market.
[6]: 45 In interviews conducted with widows from rural North India, they stated that if attempts were made to seek gainful employment outside their homes, they would be forced to give up their property rights and made to leave the villages they live in, indicating that paid work was not a feasible option even to sustain themselves due to the existing social norms.
[10]: 13 Additionally, even if women do not have children, it has been observed that they still face pay discrimination as they are viewed as potential mothers, who may require a break from work in the near future.
[15] This convention requires all member states to direct their national laws and policies towards guaranteeing equal remuneration to all workers, regardless of gender.
In an attempt to ensure compliance with this convention and in response to the Report by the Committee on status of women in India, the government enacted the Equal Remuneration Act.
This legislation not only provides women with a right to demand equal pay, but any inequality with respect to recruitment processes, job training, promotions, and transfers within the organization can also be challenged under this Act.
[21][22] The Supreme Court of India has also declared this to be a constitutional goal, available to every individual and capable of being attained through the enforcement of their fundamental rights set out in Articles 14 through 16.
The terms of employment required the mandatory retirement of females: (i) upon attaining the age of 33; (ii) if they were married within four years of service; or (iii) upon their first pregnancy.
[2]: 25 Research suggests that when countries are able to raise the female labor participation rate, this stands to benefit the entire economy.
[30] In countries where the population is aging quickly, an increase in the female labor participation rate would help offset the negative effects of a declining workforce.
[5] It is also important to note that women in India perform 9.8 times the amount of labor in the unpaid sector either through household duties or care work.