In Pakistan, the gender pay gap (GPG) remains a significant issue, with women earning substantially less than men. Recent data from the International Labour Organization (ILO) indicates that the GPG stands at 25% when measured using hourly wages and 30% on a monthly basis. This disparity underscores the ongoing challenges women face in achieving economic equality in the country.
Current State of the Gender Pay Gap in Pakistan
According to the ILO’s findings, the average hourly wage for employed women in Pakistan is PKR 750, while men earn PKR 1,000 per hour. The gap widens on a monthly basis due to men typically working more hours than women, leading to a 30% disparity in monthly earnings. Although there has been a slight improvement from a 33% gap in 2018, Pakistan still lags behind regional peers such as Sri Lanka (22%), Nepal (18%), and Bangladesh, which notably has a negative GPG of -5%, indicating women earn more than men on average
Contributing Factors to the Gender Pay Gap
Several factors contribute to the persistent GPG in Pakistan:
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Structural Barriers and Discrimination: A significant portion of the GPG is unexplained by observable factors like education, skills, or occupation, suggesting that discrimination plays a key role in wage differences
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Weak Enforcement of Labour Laws: In sectors where labour laws are better enforced, such as the formal economy and public sector, women receive wages equal to men when performing the same work. However, the informal sector experiences a much larger GPG (40%) compared to the formal sector. Similarly, the gap is wider in private sector jobs, where labour laws are often not fully enforced
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Occupational Segregation: Women are predominantly employed in lower-paying sectors such as agriculture and crafts, with limited representation in professional and managerial positions. This segregation contributes to the overall wage disparity
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Educational Disparities: While education helps women access better-paying jobs, there remains a significant gap in literacy rates and educational attainment between men and women in Pakistan. This educational gap further exacerbates the wage disparity.
Recommendations to Address the Gender Pay Gap
To effectively reduce the GPG in Pakistan, comprehensive policy interventions are necessary:
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Strengthen Labour Law Enforcement: Ensuring strict adherence to existing labour laws, particularly in the informal sector, is crucial. Strengthening compliance and promoting social dialogue are key to ensuring fair wages and better working conditions.
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Formalize the Informal Economy: Bringing informal workers, especially women, into the formal economy can provide them with legal protections, social benefits, and fair wages, thereby reducing the GPG.
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Promote Educational Equality: Investing in female education and encouraging women’s participation in diverse fields, including STEM, can help bridge the wage gap by providing women access to higher-paying jobs.
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Implement Wage Policies: Raising the minimum wage and ensuring wage-setting mechanisms consider the disproportionate representation of women in low-wage work can help reduce gender-based pay disparities
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Encourage Female Participation in the Workforce: Addressing societal norms and providing support systems such as childcare services can encourage more women to join and remain in the workforce, thereby reducing the GPG
Global Context and Commitments
Globally, the GPG remains a pressing issue. The World Economic Forum’s Global Gender Gap Report 2024 highlights that Pakistan ranks second to last, having closed only 57% of its gender gap. This underscores the need for Pakistan to intensify its efforts toward gender parity.
The ILO’s Equal Pay International Coalition (EPIC) aims for the universal ratification of the Equal Remuneration Convention, 1951 (No. 100), and seeks visible efforts and results from governments and the private sector in implementing equal pay initiatives. Pakistan’s commitment to aligning its labour laws with ILO Conventions is a positive step; however, effective enforcement and implementation remain key challenges.
Gender pay gap in Pakistan
Addressing the gender pay gap in Pakistan requires a multifaceted approach involving government action, private sector commitment, and societal change. By implementing comprehensive policies, strengthening labour law enforcement, promoting educational equality, and challenging discriminatory practices, Pakistan can make significant strides toward achieving gender pay equity. Eliminating the GPG is not only a matter of social justice but also essential for the country’s economic development and prosperity.
