CEO speaks: Equal Work, Unequal Pay: Tackling India’s Gender Pay Inequality

The gender pay gap remains a stubborn issue in India, where men earn 82% of the labour income compared to women’s 18%, as highlighted by the World Inequality Report 2022. Despite advancements in education and workforce participation, women continue to face significant pay disparities across various sectors. We need to explore the reasons behind this persistent inequality and ideate comprehensive solutions to achieve pay equity for women in the workforce. This should be a fundamental right, enshrined constitutionally or not, since I believe that this impacts the very essence of human dignity.

According to McKinsey’s 2020 report, ‘The Power of Parity,’ India could add $770 billion to its GDP by 2025 by bridging the gender gap. The Institute for Women’s Policy Research (IWPR) highlights those systemic issues, such as occupational segregation and differences in work experience, contribute significantly to the gender wage gap. The report highlights that women are often concentrated in lower-paying industries and positions, with limited access to high-paying, high-growth sectors like technology and finance. Additionally, women tend to have fewer years of work experience due to career interruptions for caregiving responsibilities, further widening the pay gap. These factors contribute to women earning significantly less than their male counterparts, perpetuating economic inequality.

This disparity is glaringly evident across various sectors—even for celebrities! In sports, for instance, male cricketers in India, such as Virat Kohli, earn significantly more than their female counterparts like Smriti Mandhana. Kohli’s annual contract with BCCI is for Rs 7 crores, while Smriti’s is for Rs 50 lakhs. This pay gap is not limited to sports but extends to the entertainment industry as well. Male actors like Akshay Kumar and Shah Rukh Khan command fees upwards of ₹100 crores per film, while top female actors such as Deepika Padukone and Priyanka Chopra earn around ₹10-20 crores per film. In the music industry, renowned male singers like Arijit Singh earn significantly more per concert and album compared to famous female singers like Shreya Ghoshal, despite their comparable talent and popularity. If this is what is happening with some of the most famous women, it is no surprise that others are not being paid their due as well!

Addressing this issue requires a multi-faceted approach. Learning from global best practices can provide a roadmap for addressing this issue. Iceland, ranked as the world’s most gender-equal country, requires companies to prove that they pay men and women equally, with non-compliant companies facing fines. New Zealand has implemented policies ensuring pay equity across public sectors and encourages private sectors to follow suit. Other Nordic countries like Sweden and Norway have robust parental leave policies and subsidized childcare, enabling women to participate fully in the workforce without sacrificing family responsibilities.

Educational reforms are crucial. Integrating gender equality and pay equity education into school curriculums can shape future generations. This is essential to create the social fabric needed to ensure that women are treated as equals in every sphere of activity. Encouraging girls to pursue STEM fields and leadership roles through scholarships and targeted programs can help break traditional occupational segregation and help them emerge from relatively lower remuneration professions. Awareness campaigns are also vital. Raising awareness about women’s rights to equal pay through media campaigns and celebrating companies and organizations that champion gender pay equity can shift societal norms and expectations.

Policy interventions by the government are essentially required. Policy interventions should include enacting and enforcing equal pay legislation, mandating pay transparency in both public and private sectors, and providing tax incentives for companies demonstrating substantial progress in closing the gender pay gap. Corporations should conduct regular pay audits, establish clear and transparent promotion and pay raise criteria, and implement mentorship and sponsorship programs for women. Mentorship involves experienced professionals providing guidance, advice, and support to help women navigate their career paths, develop skills, and build confidence. Effective mentorship can help women overcome barriers, gain access to important networks, and advance within their organizations. Sponsorship goes a step further by involving senior leaders who actively advocate for and promote their protégés, ensuring they receive high-visibility assignments, promotions, and opportunities that lead to significant career growth. These programs help women gain the necessary exposure and experience to compete for higher-paying roles and leadership positions. Companies implementing robust mentorship and sponsorship programs create an inclusive environment that fosters talent development and retention, ultimately contributing to closing the gender pay gap.

Achieving gender pay equity in India requires a concerted effort from all sectors of society. By implementing comprehensive policies, fostering corporate responsibility, and encouraging educational reforms, we can create an environment where women are valued equally for their contributions. Let us commit to breaking the cycle of inequality and building a future where equal pay for equal work is not just an aspiration but a reality!

The author is the Group CEO of Techno India Group, a visionary and an educator. Beyond his corporate role, he is also a mentor who guides students towards resilience and self-discovery