Despite decades of reforms, the global gender pay gap persists. Here’s why women earn less than men and what steps are needed to achieve true equal pay.

Introduction

Every September, the world pauses on International Equal Pay Day to confront an uncomfortable truth — despite decades of advocacy and legal reforms, women still earn less than men for work of equal value. Globally, women make about 80% of what men earn, meaning that by September each year, men have already earned what women will only catch up to by December. This persistent gap reflects not just an economic imbalance but a deeper story of historical inequalities, gender stereotypes, and undervalued labor.

Context & Background

The gender pay gap — the average difference in earnings between men and women — is a pressing global issue. According to the United Nations, women earn 77 cents for every dollar men earn, with the gap even wider for working mothers, immigrant women, and women of color.

The roots of pay inequity lie in centuries of structural discrimination, unequal access to resources, lack of representation in leadership, and the undervaluation of work traditionally performed by women. Globally, women also shoulder three more hours of unpaid care work per day than men — from childcare to cooking to elder care. Despite care work being the backbone of families and economies, it often goes unrecognized in wage calculations.

Why the Gap Persists

Several intertwined factors contribute to the stubbornness of this gap:

• Occupational Segregation: Women tend to be clustered in sectors seen as “soft-skilled,” such as nursing, teaching, or administrative roles, which are often underpaid compared to male-dominated industries.

• Motherhood Penalty: Working mothers face income loss, limited promotions, and employers’ biases around childcare responsibilities. With each additional child, women’s wages often decline further.

• Unequal Access to Opportunities: Fewer women hold senior roles or leadership positions, limiting salary advancement. Globally, only around 28% of women are granted paid maternity leave.

• Stereotypes and Bias: Gender norms drive women toward caregiving professions and away from STEM and higher-paying careers. Hiring and promotion biases continue to penalize women.

• Unpaid Labor Disparity: Women spend significant time on household work, preventing them from engaging equally in full-time, higher-paying jobs.

These patterns reinforce the cycle of underrepresentation in leadership, lower pay, and reduced pension security, leaving 65% of older women globally without regular pensions.

Expert Insight & Public Attention

Labor experts emphasize that equal pay is not just a fairness issue — it underpins economic stability and sustainable growth. The International Labour Organization’s Equal Remuneration Convention (C100) sets clear principles for equal pay, but implementation remains inconsistent.

Economist Naila Kabeer of the London School of Economics notes, “Pay inequity reflects not only workplace discrimination but society’s undervaluation of women’s roles both at home and in the market. Closing the gap requires systemic reforms, not piecemeal adjustments.”

Public opinion around the issue is shifting. Movements like #EqualPay and landmark policies in countries such as New Zealand’s Equal Pay Amendment (2020) and Germany’s minimum wage law are pushing governments and businesses to respond faster.

The Indian Scenario

In India, the struggle mirrors global realities but with local challenges. According to the 2011 Census, nearly 15 crore women form part of the workforce, with agriculture being the largest employer of female workers. Though reforms like the Equal Remuneration Act (1976), Maternity Benefit Amendment (2017), and Minimum Wages Act (1948) lay out a framework for equality, enforcement remains uneven.

Data from the National Sample Survey Office (NSSO) shows improvement: in 1993–94, Indian women earned 48% less than men, while by 2018–19, the gap had reduced to 28%. Still, challenges persist in rural and informal sectors where women dominate. Programs like MGNREGA, offering guaranteed wage employment, have slightly improved compliance with minimum wage laws and narrowed rural gender gaps.

Impact & Implications

The persistence of unequal pay has wide-ranging impacts:

• Economic Growth Loss: Studies suggest that reducing the gender pay gap could boost global GDP by trillions.

• Social Justice: Inequity perpetuates cycles of poverty, especially for single mothers and marginalized communities.

• Generational Disadvantage: The pay gap today translates into a pension gap tomorrow, leaving elderly women more vulnerable.

Closing the gap requires multi-level interventions: ensuring pay transparency, enforcing labor laws, breaking stereotypes that steer women into undervalued jobs, and enabling advancement into leadership. One of the most effective tools cited by experts is the introduction of minimum living wages and universal social protections, which disproportionately benefit women in low-paid roles.

Conclusion

The gender pay gap is more than a number — it is a reflection of how societies value men and women differently. As the world marks International Equal Pay Day, the demand is not merely symbolic but a call to action. Equal pay is a human right, a driver of economic stability, and a cornerstone of social justice.

Bridging this gap is not just about correcting paychecks. It is about reshaping narratives, enforcing accountability, and ensuring that the next generation grows up in a workforce where equal pay for equal value is the norm, not the exception.

Disclaimer : This article has been prepared for informational and educational purposes only. It is based on publicly available research and verified resources. It should not be considered legal, financial, or policy advice.