India Gender Wage Gap: Women Earn 24% Less In Salaried Roles

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AuthorRiya Kapoor|Published at:
India Gender Wage Gap: Women Earn 24% Less In Salaried Roles

The Periodic Labour Force Survey (PLFS) 2025 reveals women in India earn 24.2% less in salaried jobs and 33.7% less in casual labor compared to men. This data, presented in Parliament, underscores structural labor market challenges. These disparities significantly impact household income and national consumption patterns, highlighting the economic cost of occupational segregation and the double burden of unpaid caregiving.

The Ministry of Statistics and Programme Implementation (MoSPI) has released data from the Periodic Labour Force Survey (PLFS) 2025, detailing a persistent wage gap between genders across the Indian workforce. The findings, presented by Minister of State for Statistics and Programme Implementation, Rao Inderjit Singh, during the Monsoon Session of Parliament, show that women continue to face significant earning disparities in both formal and informal sectors.

The Scale of Wage Disparity

According to the PLFS 2025 data, women in regular wage or salaried employment earn an average of Rs 18,353 per month, compared to Rs 24,217 for men. This represents a 24.2% lower income for women in formal employment settings. The gap is even more pronounced in the casual labor sector, where women earn an average of Rs 324 per day, nearly 34% less than the Rs 489 earned by their male counterparts.

While absolute income differences remain large, economic analysts often look at wage growth trends to understand momentum. Recent data indicates that wage growth rates for women, particularly in self-employment and some salaried segments, have shown growth, yet this has not been sufficient to close the absolute income gap established over decades of structural inequality.

Economic and Structural Context

From an economic perspective, these figures are critical for understanding the limitations on national purchasing power and household consumption. When a large segment of the workforce earns lower wages due to structural barriers, it limits the total economic output and the potential size of the consumer market. Economists point to several factors driving this disparity, including occupational segregation—where women are concentrated in lower-paying industries or roles—and the 'double burden' of managing both professional work and domestic responsibilities.

To address the invisibility of this unpaid domestic labor, the Ministry has emphasized the importance of the Time Use Survey (TUS). Conducted in recent rounds, including 2024, the TUS seeks to capture the economic value of unpaid caregiving, domestic chores, and volunteer work. By quantifying these activities, policymakers aim to gain a clearer picture of women's true contribution to the economy beyond the formal wage statistics.

Looking Ahead

The persistence of this wage gap presents a long-term challenge for the labor market. For investors and economic observers, the key monitorable will be whether future government policies and private sector initiatives can effectively reduce the structural barriers preventing wage parity. Future updates on labor force participation rates, combined with the integration of Time Use Survey findings into broader economic planning, will be essential to track how effectively the gap is being addressed.

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