The gender pay gap, hard truths and actions needed

Source: The post is based on the article “The gender pay gap, hard truths and actions needed” published in The Hindu on 19th September 2022.

Syllabus: GS 3 – Inclusive growth and issues arising from it.

Relevance: Gender pay gap and issues related to it

News: International Equal Pay Day 2022 falls on the 18th of September. This day makes us think of the gender gap that has arisen between women and men. The commitment towards ‘equal pay for work of equal value’ has not been achieved.

What has led to the increase in the gender pay gap?

Pandemic: The pandemic affected women workers most in terms of job and income losses. Many women have gone back to full-time care of children and the elderly during the pandemic.

Economic recovery from the pandemic is impossible without improving women’s employment rate and reducing the gender pay gap.

Discrimination: Another reason for the increase in the gender pay gap is discrimination based on gender or sex.

Gender-based discriminatory practices include lower wages paid to women for work of equal value, undervaluation of women’s work in highly feminised occupations and enterprises, etc.

However, there are many steps taken at the international level to bridge the gender pay gap.

What steps have been taken internationally to address the gender pay gap?

The United Nations have taken efforts at the international level to eliminate all form of gender inequality. The ILO has enshrined ‘equal pay for work of equal value’ in its Constitution.

The Convention on the Elimination of All Forms of Discrimination against Women (CEDAW) provides an international legal framework for realising gender equality.

One of the targets of the UN Sustainable Development Goal 8 is “achieving full and productive employment and decent work for all women and men, including for young people and persons with disabilities and equal pay for work of equal value” by 2030.

Equal Pay International Coalition (EPIC) was launched in 2017 as a multi-stakeholder initiative led by the ILO, UN Women and the Organisation for Economic Co-operation and Development (OECD) seeks to achieve equal pay for women and men everywhere.

What is the current situation of women’s wages?

Internationally: According to the Global Wage Report 2020–21 of the International Labour Organization, there is massive downward pressure on wages and this has affected women’s total wages compared to men.

At the India level: The gender pay gap in India remains high by international standards despite the efforts taken in bringing down the gender pay gap.

The estimates from the Periodic Labour Force Survey (PLFS) 2020-21 show an increase in the gap by 7% between 2018-19 and 2020-21 due to the pandemic.

However, labour force survey data of the National Sample Survey Office (NSSO) indicates that the gender pay gap has declined from 48% in 1993-94 to 28% in 2018-19.

What steps have been taken by India to decrease the gender pay gap?

India has taken required reforms in the Minimum Wages Act in 1948 and adopted the Equal Remuneration Act in 1976. India has also enacted the Code on Wages.

Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) in 2005 has also benefited rural women workers and helped reduce the gender pay gap directly and indirectly. MGNREGA has helped women workers directly by raising their pay levels and indirectly by providing higher earnings to women involved in agricultural occupations.

India amended the Maternity Benefit Act of 1961 which increased maternity leave with pay protection from 12 weeks to 26 weeks for all women working in firms that employ 10 or more workers.

Skill India Mission has helped women to learn market-relevant skills to bridge the learning-to-livelihood gap and the gender pay gap.

What can be the further course of action to bridge the gender pay gap?

Accelerated and bold action is needed to prevent a widening of the gender pay gap and closing the existing gap. Equal pay for work of equal value is necessary to close the gender pay gap.

Closing the gender pay gap is a key to achieving social justice for working women as well as economic growth for the nation.