WAGE DIFFERENTIALS IN INDIA BASED ON GENDER GAP – AN OVERVIEW
(B.Tech., M.L., Advocte, The Trichirappalli Bar Association.)
Best Citation - M.Suriya Priya, Wage Differentials In India Based On Gender Gap – An Overview, 1 IJLR & 8 (2021)
In India, Male Domination with a Complementary suppression of women has been continuing since, Pre-historic times. There has been discrimination between male and female child, men and women, rich and poor, Rural and urban areas. The main thing is, women are considered as Goods and chattels. They are considered as object of sense – gratification too. Indian women have suffered and are still suffering discrimination in Silence manner, at working places, at Home and in all aspects, self – sacrifice and self – denial are their Nobility and fortitude and yet they have been subject to all Inequality, inequities indignities and discrimination.
KEYWORDS: Wage, Male, Female, Gender, Remuneration.
One of the harsh realities of the 21st century is the existence of a persistence gap between the wages of Men and Women around the world and particular in India. Wage difference on gender basis has been a great global concern forever a century, now, yet progress made to check the issue has been very slow. Even in advanced Industrialized countries like United States and Western Europe are struggling and fighting very hard to achieve a fair wage Balance between men and women workers. But when it comes to the case of developing countries like ours, (i.e) India, the wage disparities on the basis of Gender is far more striking. Among the BRIC – (ie) Brazil, Russia, India, China) Economies, India ranks lowest on gender parity, which includes pay parties (ie) difference between wages of men and women. The fact was revealed in the Global gender gap report of 2010. The Report survey by recently updated by the world Economic forum (WEF) put the point out of the Indian situation, ranking 140 among 156 countries under the South Asian countries and also India had ranked 112th among 153 countries in the Global gender gap Index 2020, which constitutes among bottom 10 countries in the world in terms of Women’s participation in the Economy. The survey of Monster salary Index (MSI) report revealed that the Median Gross salary for men in India in 2018 was Rs.242.49, While for women is Rs.196.3. Which states than Men Earn Rs.46.19 more than women. It service should a sharp pay gap of 26% in favour of men than women, while in the Manufacturing sector Men earn 24% more than women.
II. STATEMENT OF THE PROBLEM
Our Indian constitution recognized the principle of “Equal pay” for “Equal Work” for both Men and Women, and “Right Articles are inserted as Directive principles of state policy in the constitution of India. In this study of Analytical Research, the Gender pay gap discrimination is analysed between Me and Women for the purpose of making Awareness about the Gender pay gap disparity and to ensure Equality among Men and women in all aspects with respect to the constitution of India.
III. OBJECTIVES OF THE STUDY
To analyze the wage Differentials prevailing in India.
To evaluate whether Equal Remuneration Act, 1976, the payment of wages Act, 1936 and Minimum wages Act, 1948 Co-relates the Wage Differentials in India.
To analyze what measures to be taken to reduce (or) Remove the wage Differentials / Gap.
IV. REVIEW OF LITERATURE
The constitution of India, 1950 Act ensures the Right of Women’s and Equal treatment as of Men in Article 39(d) and Article 41 laying the principle of “Equal pay” for “Equal Work which emphasis Right to work and Earning for men and Women.
The payment of wages Act, 1936; Minimum wages Act, 1948 and Equal Remuneration Act, 1976 explains the wage differentials among Men and women and here, how further it should be analyzed for betterment of Equality to women as of men.
Dr.S.R.Myneni, cleanly states the Women’s Situation and how protection among laws to be given to women’s in his “Women and Law, hence in this research it states how can the equalities under law can be enforced for Men and Women in further.
The Global gender gap Report 2021 World Economic Forum (WEF) published in 1 April 2021 emphasis the overall gender pay gap between Men and Women’s global report of wage differentials.
V. CONCEPT OF WAGE DIFFERENTIALS
The wage differentials in India tends to be higher in Rural as compared with urban areas; and are higher among women than among men. The wage differentials also tends to be higher for low- skilled workers. There is a considerable evidence of an increase in the wage differentials between 1993-94 and 1999-2000.
VI. DEFINITION OF WAGES
“A fixed regular payment earned for work (or) services, typically paid on a daily (or) weekly basis”. A Wage is defined as, “a monetary compensation (or) Remuneration, personnel expenses, labour paid by an Employer to an Employee in exchange for work done. Payment is calculated as a fixed amount for work basis as hourly (or) daily rate (or) based on easily measured quantity of work done”. In simple to say a, “Services rendered by an Employee based on work towards the company for an Employer, paid by cash (or) amount for the work done.”
VII. TYPES OF WAGES
There are three types of wages.
Ø Living wages
Ø Minimum wages
Ø Fair wages
i) Livings wages:
Living wage is a, “wage sufficient to ensure the workman food, shelter, clothing, frugal comfort, provision for evil days etc, also essentials including children Education, Protection against ill – health and measures of Essential social needs and insurance against old age”. Thus Livings wages means, the provision for the bare necessities plus certain amenities considered necessary for wellbeing of the workers in terms of his social status.
ii) Minimum wages:
The Lowest wage necessary to maintain a worker and his family at the Minimum level of subsistence, which includes food, clothing and shelter. The Government fixes the Minimum wage in particular trade (or) Business.
iii) Fair wages:
A fair wage is someone more than the Minimum wages. Fair wage is a mean between the living wage and the Minimum wage.
VIII. GENDER PAY GAP IN INDIA
Gender pay gap in India, refers to the difference in earnings between women and Men in the paid Employment and labour Market(1). For the year 2013, the gender pay gap in India was estimated to be 24.8%(2). Further while analysed the level of female participation in the Economy, this report stots India as one of the bottom 10 counties on its list. Thus, in addition to unequal pay, there is also unequal representation, because while women constitute almost half the Indian population. (about 48% of Total), their representation in work force amounts to only about one – fourth of the Total (3).
IX. FACTORS FOR WAGE DISPARITIES
i) Wage Rates and Human capital.
ii) Supply and Demand
iii) Working conditions of Employees in
-working with (or) Near Hazardous chemicals.
- Working with dangerous animals (eg;lion trainer).
- Working with dangerous tools such as welding, below torches, iron rods.
iv) The wage rates in Discrimination such as,
- Difference in efficiency.
- Presence on Non – Competing groups
- Immobility of Labour
- Nature of Employment.
- Training and qualification.
- Productivity delay.
- Irregularity in Employment
X. VARIOUS TYPES OF WAGE DIFFERENTIALS IN INDIA
(BETWEEN MEN & WOMEN)
1) Occupational differentials.
2) Inter – occupational differentials.
3) Inter – firm differentials
4) Inter – area (or) Regional differentials.
5) Inter – Industry Differentials.
6) Personal wage differentials.
7) Economically based wage differentials.
XI. THE WAGE DIFFERENTIALS PREVAILING IN INDIA
When women and men’s wages are compared without taking into consideration that to a large extent, work within different sectors, and occupations, women Employees earn on average 27.1. Percent less of that of men. The wage differential between women and men is thus huge disparity. Wage differences can be depend on discrimination, but also on a number of different factors, (ie) occupation, work experience, education and what part of the labour market the work is performed in. Average men earn Rs.259.80 per hour and that women earn just Rs.190.50/hr.
XII. EQUAL REMUNERATION ACT, 1976 IS RELATED TO THE STUDY OF WAGE DIFFERENTIALS
Yes, The Equal Remuneration Act, 1976 is related to the study of wage differentials based on Gender. As, the Equal Remuneration Act, 1976 enacted to implement Article 39 (d) of the constitution of India and the Equal Remuneration convention, 1951 was designed for the prevention of Discrimination based on sex against women in the Employment; The International Covenant on Economic, Social and cultural Right (ICESCR) has passed the Law asking states, “To Ensure that men and women have equal social, religious and cultural rights. The Law of Covenant also refer (or) focuses on the fact that the Remuneration should be Equal for equal work and there should not be any kind of discrimination on the basis of women & men (sexes) (ICESCR 1990). The International Labour Organization has framed conventions (laws) to protect the women Labour from discrimination. In case of wages, it has formed Equal Remuneration convention (No. 100) which ensures Equal remuneration to both the Male and Female Labors.
XIII. PAYMENT OF WAGES ACT AND MINIMUM WAGES ACT CO-RELATES ABOUT WAGE DIFFERENTIALS IN GENERAL
(i) The minimum wage is primarily used as a vehicle for lifting the incomes of poor workers, but it can also entail distortionary costs.
(ii) Evidence of the impact of Minimum wages on women’s wage and the gender wage differentials (or) gender wage gap in mixed essentially because it depends on the extent to which Employers comply with the Legislation.
(iii) According to the payment of wages Act, 1936, provisions are provided to wage payment for every worker, sectors, industries etc. Lower wage rates are also paid to certain groups are also common.
(iv) To reduce such wage discrimination (or) differences, developing country of ours India follows Liberalization – privatization – Globalization (LPT) which will causes new dynamics in the Labour Market.\
(v) With increased investment, trade and output, more and better Employment opportunities would emerge and labour Mobility would increase and thus narrowing a Horizontal wage equalities among workers that is between male and female with similar skills and same types of Jobs.
(vi) Thus, the payment of wages Act 1936 and Minimum wages Act, 1948 exaggerates and co-relates the wage differentials and with that, many improvement can be made to provide Equality among wages.
XIV. MEASURES TO BE TAKEN TO REDUCE (OR) REMOVE THAT WAGE DIFFERENTIALS / GAP
(i) The Government launches new measures to reduce gender pay Gap (ie)
- To strengthen and upgrade the Mechanisms for Monitoring Equality in Employment.
- Create favor able work Environment which foster gender Equality and career advancement of women.
- Increase information awareness and promote research on issues concerning Equal treatment for women and Men at work.
- Also government should make reporting on pay date Mandatory (ie) reviewing Remuneration structures.
(ii) Other Measures are:
- To pay attention to your company’s Data like pay Audit etc.
- Giving pay rise to women (ie) women need to ask for more money. She should be rewarded for her work.
- Stop blaming children (ie) women looking care of both work and looking after children & value women work.
Many legislations made regarding wage discrimination, (ie) Maternity Benefit Act provides protection for women giving 12 weeks leave for Delivery, 6 weeks for Miscarriage. Similarly Minimum wages Act and payment of wage Act provides wage protection. India is a permanent member of International Labour organization governing Body form 1922. Many Conventions made for equal pay for men & women. The increasing participation levels of women in the paid labour market activities is viewed as a positive outcome for improving women’s status by bridging the sphere of Economic involvement. The Research thus suggests that when counties are able to raise the female labour participation rate, stands to benefit the entire Economy. About from potential growth, equal employment opportunities for woman could also result in increased growth & profitability.
1. “The payment of wages Act and the Minimum wage act with state Amendments and Rule” by HARBANS LAL SARIN.
2. “Women and Law” by Dr.S.R.Myneni.
3. The constitution of India, 1950. Act.
4. The factories Act & Maternity Benefit Act.
5. 2001- “Gender and informality in Labour market in south Asia” in Economic and political weekly (Mumbai, EPW Research foundation). Vol. 36, No.26.
XVII. FOOT NOTES
1) – Dutta , Puja (2005). “Accounting for wage Inequality in India”. (The Indian Journals of Labour Economics.”
2) – “Gender pay gap in the formal sector : 2006-2013 (sep 2013)”. Wage Indicator Data report.
3) – “Eleventh five year plan (2007-2012) planning commission, Government of India”.
4) – “Staff Discussion Note, IMF (sep 2013) women, work and the Economy. Macroeconomic gains from gender equlity”.