Gender pay gap at non-supervisory level has grown by 5 percentage point between 2015 and 2016

classificationExcerpts from “Monster Salary Index 2016: Gender Pay Report – Ready Reckoner”, a report based on data from eight sectors, Legal and market consultancy, business activities; Information and Communication Technology (ICT); Health Care, Caring services, Social work; Education and Research; Financial Services, Banking, Insurance; Transport, Logistics, Communication; Construction and Technical Consultancy; and Manufacturing:

Based on the data for the eight sectors covered by the Monster Salary Index, the overall gender pay gap in India amounts to 25% in 2016. This is a 2 percentage points drop from the 27% gap in 2015. Men earn hourly median gross wage of INR 345.8, whereas women only receive INR 259.8.

The gender pay gap was 24% in 2014 and 27% in 2015. The largest gender pay gap in 2016 was found in the Transport, logistics and communication sector (42.4%). The lowest was recorded in the Education and research, where women earned 3.4% more than men. The gender pay gap at supervisory level dropped from 2015 to 2016 by 8.1 percentage points (from 28.1% to 20%).

Contrary to this, the gap at non-supervisory level has grown by 5.0 percentage point between 2015 and 2016. Not only are women often put at disadvantage when it comes to filling supervisory positions, but also remain underpaid by INR 89.2 (30.1%) in supervisory positions.

The average hourly wage in India is INR 288.7. However, gender continues to be a significant factor for determining wages in the Indian market. The average wage for male employees was INR 288.7 for both, 2014 and 2015. Until 2016 it increased by INR 57.1 (19.8%) to INR 345.8. Wages of female employees fell by INR 8.9 in 2015 (4.2%) to INR 210.2 but then rose again by INR 49.6 (17.9%) to INR 259.8 in 2016.

Despite the stark increase in overall wages in 2016, on average, female employees earn INR 63.5 less than their male counterparts. This means gender pay gap is at level of 24.8%

gender gap1

The difference becomes even clearer when separately looking at the yearly values. The gender pay gap in 2014 amounted to 24.1% but then grew to 27.2% in 2015. In 2016 it fell again to 24.8%, therewith remaining above the level of 2014. As a result, male employees’ hourly wages were INR 86.0 higher in 2016 than female employees. Compared to INR 69.6 and INR 78.5 in 2014/2015 respectively, this means an overall increase in wage rates. In sum, women remain strongly underpaid.2

As women are expected to take on a disproportional share of household and family care, employers expect married women to be more constrained by such obligations, and as a result discriminate against women and prefer men for training and promotion. Child-related career breaks and other socio-cultural factors add to the perpetuation of the gap.

Supervisory position

On average, employees in supervisory positions earn INR 368.4 per hour compared to INR 219.4 for employees in non-supervisory positions, which amounts to a difference of INR 149.0 or +67.9%. The wage developments reconfirm the concerns about growing income inequality between supervisors and non-supervisors rose in the WageIndex Report India 2015 (Kabina, 2015). In 2016 supervisors earned 48.3% more than non-supervisors, compared to 38.5% in 2015 and 2014. Non-supervisors do not seem to profit (much) from the economic upswing of the country.

Not only are women often put at disadvantage when it comes to filling supervisory positions, but also remain underpaid by INR 89.2 (30.1%) in supervisory positions. The gender pay gap for non-supervisory positions is INR 51.5 (28.7%). While wages fell slightly in 2015, they rose significantly for both genders in 2016. For male supervisors this meant an increase of INR 72.1 (20.0%).

Hourly wages for non-supervisors rose by INR 9.9 (4.5%). Female employees in supervisory positions experienced a rise in wages of INR 87.0 (33.5%) compared to only 1.1% for female non-supervisors. And the trends have been twofold. The gender pay gap at supervisory level has dropped from 2015 to 2016 by 8.1 percentage points. Contrary to this, the gap at non-supervisory level has grown by 5.0 percentage point between 2015 and 2016.

Download full report HERE

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