History and contributing factors
The female labor participation rate in India from 1901 to 1951 was between 28 and 34 percent, which is higher than the level of participation observed in 1990. [4] This rate also varies from state to state. Regions in northern India (which have been observed to be more patriarchal) have lower participation rates for women than the states in southern India, where women have more freedom to participate in the formal economy. [4] SEWA (the Self Employed Women's Association) recently found that the average wage of women workers was Rs. 1815 while the average wage for men was Rs. 3842.
Some of the main factors that contribute to the existing gender pay gap in India are:
Occupational preferences
The rate of female participation in the paid labor market is generally low, and is primarily concentrated in rural areas in the agricultural sector. [5] In rural north India, it has been observed that labor is divided sharply on the basis of gender. 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. [6] [7] This is a mere preference and not domination. Female labor participation in India has been observed to be higher in sectors involving personal services and care work, and is also higher in informal sectors, especially in agriculture. [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. [9]
Cultural barrier
While social and cultural norms vary from state to state within India, one commonality that has been observed is the exclusion of women from the paid labor market and status based segregation of labor. [6] Ironically, women from higher castes faced more difficulty when they tried to obtain paid work, even if their survival depended on it. [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. [6] : 49 Because childcare is viewed primarily as a woman's job, women often take part-time jobs or take time off during their careers to care for their families. When women return to work after a break, they are paid lower wages than their male colleagues. Women employed full-time ordinarily already earned 34% less than men, but when compared to part-time working women, the pay gap further increased as they earned almost 42% less than men. [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. [10]
Education and training
The literacy rate for women in India is far lower than the rate for men, and it has been observed that many girls drop out of school and fail to fully complete their education. [8] : 76 Investment in education and training has also been strongly in favor of men as they are brought up with the expectation of being bread earners, and hence this investment is considered necessary for their success, while women are instead viewed as "future homemakers" for whom education may not be as essential. [11] : 325 This difference between male and female education has been reduced in past years as the country has developed where in 2001 the difference between literacy percentage of male and female was 21.59 and in 2011 was decreased to 16.68, which shows that women are getting more opportunities as the time progresses. [12] [13]
Unpaid work
According to the Human Development Report 1995, women spend about two-thirds of their working time on unpaid work, while men spend only one-fourth of their time towards unpaid labor. [14] It has been estimated in India that women on average work twenty-one more hours than men during each week. [14] Agriculture currently accounts for over two-thirds of the current employment in India, but most of the work women contribute to this sector is not accounted for or officially documented. [8] This again, does not take into consideration the total population of men and women in the workforce.
Legislative protections
International obligations
India has been a permanent member of the ILO Governing Body from 1922. In September 1958, India ratified the C100 Equal Remuneration Convention, 1951 (No. 100), which addressed the issue of equal pay between men and women for work of equal value. [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. [16]
Equal Remuneration Act, 1976
In 1976, the Equal Remuneration Act was passed with the aim of providing equal remuneration to men and women workers and to prevent discrimination on the basis of gender in all matters relating to employment and employment opportunities. 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. [17] However, its scope does not extend to situations where: (i) a woman is attempting to comply with the requirements of laws giving women special treatment; and (ii) a woman is being accorded special treatment on account of the birth of a child, or the terms and conditions relating to retirement, marriage or death. [18] Companies and individual employers can both be held accountable to maintain the standards prescribed under this Act. [19] In various cases, the Supreme Court of India has also held that discrimination on the basis of gender only arises when men and women perform the same work or work of a similar nature. However, it clarified that a flexible approach is required to be taken while deciding which kinds of work may be similar by considering the duties actually performed as a part of the job, and not the duties potentially capable of being performed. [20]
Constitutional protections
As part of its Directive Principles of State Policy, the Constitution of India through Article 39 envisages that all states ideally direct their policy towards securing equal pay for equal work for both men and women, and also ensuring that men and women have the right to an adequate means of livelihood. While these Directive Principles are not enforceable by any court of law, they are crucial to the governance of the country and a state is duty bound to consider them while enacting laws. [21]
While “equal pay for equal work” is not expressly a constitutional right, it has been read into the Constitution through the interpretation of Articles 14, 15 and 16 – which guarantee equality before the law, protection against discrimination and equality of opportunity in matters of public employment. [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. [23] In a popular Supreme Court decision, the conditions of employment of the air-hostesses of Air India was challenged. 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. The court however struck down these provisions and held them to be arbitrary and discriminatory as it violated Articles 14, 15 and 16 of the Constitution. [24]
Ancillary legislation
While legislation like the Maternity Benefit Act, 1961 and the Factories Act, 1948 do not directly address the issue of equal pay for equal work, they provide certain additional benefits a woman can claim. The Maternity Benefit Act applies to all establishments with more than ten employees. [25] However, in states where the Employees’ State Insurance Act applies, employers no longer have any liability under the Maternity Benefit Act. [26] Under this Act, a pregnant woman worker is entitled to 26 weeks of fully paid maternity leave, and six weeks in case of miscarriage or termination of pregnancy. [27] Pregnant women also have the right to not perform physically arduous work, which may affect their pregnancy, and no deductions can be made from their wages because of this. [28] Additionally, as per the Factories Act, employers are required to provide childcare for children under 6 years old at all worksites that employ over 30 women. [29]
A salary is a form of periodic payment from an employer to an employee, which may be specified in an employment contract. It is contrasted with piece wages, where each job, hour or other unit is paid separately, rather than on a periodic basis. Salary can also be considered as the cost of hiring and keeping human resources for corporate operations, and is hence referred to as personnel expense or salary expense. In accounting, salaries are recorded in payroll accounts.
Parental leave, or family leave, is an employee benefit available in almost all countries. The term "parental leave" may include maternity, paternity, and adoption leave; or may be used distinctively from "maternity leave" and "paternity leave" to describe separate family leave available to either parent to care for small children. In some countries and jurisdictions, "family leave" also includes leave provided to care for ill family members. Often, the minimum benefits and eligibility requirements are stipulated by law.
The Equal Pay Act of 1963 is a United States labor law amending the Fair Labor Standards Act, aimed at abolishing wage disparity based on sex. It was signed into law on June 10, 1963, by John F. Kennedy as part of his New Frontier Program. In passing the bill, Congress stated that sex discrimination:
Equal pay for equal work is the concept of labour rights that individuals in the same workplace be given equal pay. It is most commonly used in the context of sexual discrimination, in relation to the gender pay gap. Equal pay relates to the full range of payments and benefits, including basic pay, non-salary payments, bonuses and allowances. Some countries have moved faster than others in addressing equal pay.
Employment discrimination is a form of illegal discrimination in the workplace based on legally protected characteristics. In the U.S., federal anti-discrimination law prohibits discrimination by employers against employees based on age, race, gender, sex, religion, national origin, and physical or mental disability. State and local laws often protect additional characteristics such as marital status, veteran status and caregiver/familial status. Earnings differentials or occupational differentiation—where differences in pay come from differences in qualifications or responsibilities—should not be confused with employment discrimination. Discrimination can be intended and involve disparate treatment of a group or be unintended, yet create disparate impact for a group.
The gender pay gap in the United States is a measure comparing the earnings of men and women in the workforce. The average female annual earnings is around 80% of the average male's. When variables such as hours worked, occupations chosen, and education and job experience are controlled for, the gap diminishes with females earning 95% as much as males. The exact figure varies because different organizations use different methodologies to calculate the gap. The gap varies depending on industry and is influenced by factors such as race and age. The causes of the gender pay gap are debated, but popular explanations include the "motherhood penalty," hours worked, occupation chosen, willingness to negotiate salary, and gender bias.
Since the industrial revolution, participation of women in the workforce outside the home has increased in industrialized nations, with particularly large growth seen in the 20th century. Largely seen as a boon for industrial society, women in the workforce contribute to a higher national economic output as measure in GDP as well as decreasing labor costs by increasing the labor supply in a society.
Occupational segregation is the distribution of workers across and within occupations, based upon demographic characteristics, most often gender. Other types of occupational segregation include racial and ethnicity segregation, and sexual orientation segregation. These demographic characteristics often intersect. While a job refers to an actual position in a firm or industry, an occupation represents a group of similar jobs that require similar skill requirements and duties. Many occupations are segregated within themselves because of the differing jobs, but this is difficult to detect in terms of occupational data. Occupational segregation compares different groups and their occupations within the context of the entire labor force. The value or prestige of the jobs are typically not factored into the measurements.
Gender inequality in India refers to health, education, economic and political inequalities between men and women in India. Various international gender inequality indices rank India differently on each of these factors, as well as on a composite basis, and these indices are controversial.
Indian labour law refers to law regulating labour in India. Traditionally, the Indian government at the federal and state levels has sought to ensure a high degree of protection for workers, but in practice, this differs due to the form of government and because labour is a subject in the concurrent list of the Indian Constitution. The Minimum Wages Act 1948 requires companies to pay the minimum wage set by the government alongside limiting working weeks to 40 hours. Overtime is strongly discouraged with the premium on overtime being 100% of the total wage. The Payment of Wages Act 1936 mandates the payment of wages on time on the last working day of every month via bank transfer or postal service. The Factories Act 1948 and the Shops and Establishment Act 1960 mandate 15 working days of fully paid vacation leave and 7 casual leaves each year to each employee, with an additional 7 fully paid sick days. The Maternity Benefit (Amendment) Act, 2017 gives female employees of every company the right to take 6 months' worth of fully paid maternity leave. It also provides for 6 weeks worth of paid leaves in case of miscarriage or medical termination of pregnancy. The Employees' Provident Fund Organisation and the Employees' State Insurance, governed by statutory acts provide workers with necessary social security for retirement benefits and medical and unemployment benefits respectively. Workers entitled to be covered under the Employees' State Insurance are also entitled to 90 days worth of paid medical leaves. A contract of employment can always provide for more rights than the statutory minimum set rights. The Indian parliament passed four labour codes in the 2019 and 2020 sessions. These four codes will consolidate 44 existing labour laws. They are: The Industrial Relations Code 2020, The Code on Social Security 2020, The Occupational Safety, Health and Working Conditions Code, 2020 and The Code on Wages 2019.
Gender pay gap in Australia looks at the persistence of a gender pay gap in Australia. In Australia, the principle of "equal pay for equal work" was introduced in 1969. Anti-discrimination on the basis of sex was legislated in 1984.
In the United States, despite the efforts of equality proponents, income inequality persists among races and ethnicities. Asian Americans have the highest median income, followed by White Americans, Hispanic Americans, African Americans, and Native Americans. A variety of explanations for these differences have been proposed—such as differing access to education, two parent home family structure, high school dropout rates and experience of discrimination and deep-seated and systemic anti-Black racism—and the topic is highly controversial.
In Russia the wage gap exists and statistical analysis shows that most of it cannot be explained by lower qualifications of women compared to men. On the other hand, occupational segregation by gender and labor market discrimination seem to account for a large share of it.
The motherhood penalty is a term coined by sociologists, that in the workplace, working mothers encounter disadvantages in pay, perceived competence, and benefits relative to childless women. Specifically, women may suffer a per-child wage penalty, resulting in a pay gap between non-mothers and mothers that is larger than the gap between men and women. Mothers may also suffer worse job-site evaluations indicating that they are less committed to their jobs, less dependable, and less authoritative than non-mothers. Thus, mothers may experience disadvantages in terms of hiring, pay, and daily job experience. The motherhood penalty is not limited to one simple cause but can rather be linked to many theories and societal perceptions. However, one prominent theory that can be consistently linked to this penalty is the work-effort theory. It is also based on the mother's intersectionality. There are many effects developed from the motherhood penalty including wage, hiring, and promotion penalties. These effects are not limited to the United States and have been documented in over a dozen other industrialized nations including Japan, South Korea, The United Kingdom, The Netherlands, Poland, and Australia. The penalty has not shown any signs of declining over time.
The social and economic changes in Thailand in the past decades have important implications for the quality and quantity of labor. The economic and non-economic roles of women in Thailand can be traced back several hundred years in Thai history, when there were traditional discriminatory attitudes towards women in the culture of Thailand. The transformation of Thailand's social and economic structure since the 1960s led to the gender disparities in Thai society. Recently, the position of Thai women in the labor market has improved a lot in comparison to the past as a result of modernization. In 2011, Thailand ranked 69th out of 143 countries in the Gender Inequality Index. In labor economics, gender inequality is widely discussed in terms of concepts of sex segregation and employment discrimination. Thai government and non-governmental organizations have put forth many policies and programs to address gender inequalities in the last few decades.
Female participation and advancement in majority Muslim countries, or nations in which more than 50% of the population identifies as an adherent of the Islamic faith, have traditionally been areas of controversy. Several Western nations, such as the United States and Western Europe, have criticised majority Muslim nations for the lack of involvement and opportunity for women in the private sector.
The gender pay gap or gender wage gap is the average difference between the remuneration for men and women who are working. Women are generally found to be paid less than men. There are two distinct numbers regarding the pay gap: non-adjusted versus adjusted pay gap. The latter typically takes into account differences in hours worked, occupations chosen, education and job experience. In other words, the adjusted values represent how much women and men make for the same work, while the non-adjusted values represent how much the average man and woman make in total. In the United States, for example, the non-adjusted average woman's annual salary is 79–83% of the average man's salary, compared to 95–99% for the adjusted average salary.
Women in Trinidad and Tobago are women who were born in, who live in, or are from Trinidad and Tobago. Depending from which island the women came, they may also be called Trinidadian women or Tobagonian women respectively. Women in Trinidad and Tobago excel in various industries and occupations, including micro-enterprise owners, "lawyers, judges, politicians, civil servants, journalists, and calypsonians." Women still dominate the fields of "domestic service, sales, and some light manufacturing."
The gender pay gap in New Zealand is the difference in the median hourly wages of men and women in New Zealand. In 2020 the gender pay gap is 9.5%. It is an economic indicator used to measure pay equality. The gender pay gap is an official statistic published annually by Stats NZ sourced from the Household Labour Force Survey.
Vermont has the 10th smallest gender wage gap of all the states in America, with women who work full-time year round in Vermont making, on average, 84 cents for every dollar made by a man. This equates to $7,589 yearly. Together, Vermont women lose over $705 million every year. For a single person, 16 cents on every dollar amounts to approximately seven months of rent, and $7,000 for a family of four would pay for six months of child care or groceries.
