Women in Pakistan earn 30 percent less than men, ILO finds in landmark wage gap study

Arab News

2 days ago

ISLAMABAD: Women in wage employment in Pakistan earn nearly 30 percent less per month than men despite often having higher levels of education and working full time, according to a new report by the International Labour Organization (ILO), one of the most comprehensive studies of the country's gender pay gap to date.
Published in July 2025, the 'Gender Pay Gap in Pakistan: An Empirical Analysis' found that on average, women earn 25 percent less per hour and 30 percent less per month than male counterparts, 'even when they have similar qualifications and experience, and are employed in comparable roles.'
'The magnitude of the gender pay gap in Pakistan is among the highest when compared to other lower-middle-income countries,' the ILO said.
The study used data from Pakistan's Labour Force Surveys from 2013 to 2021, examining hourly, monthly and annual earnings across public and private sectors, including both formal and informal employment. The authors concluded that the wage disparity is only partially explained by observable factors such as age, education, occupation and hours worked.
'The majority of the wage gap between men and women in Pakistan remains unexplained, suggesting that discrimination or other unmeasured factors may be at play,' the report said.
The wage gap is also compounded by extremely low female participation in the labor force.
According to the report, women account for just 13.5 percent of wage employees, despite making up nearly half the working-age population.
As of 2021, the female employment rate stood at 23 percent, compared to 79 percent for men.
'The overall employment gap — defined as the difference in employment-to-population ratios between men and women — has hovered at 56 percentage points over the last decade,' the report found, adding that women face 'multiple challenges when entering, staying in, and progressing in wage employment.'
In many cases, the ILO noted, women with higher levels of education still earned significantly less than men with similar or even lower qualifications, 'indicating entrenched biases in hiring and promotion decisions.'
INFORMAL SECTOR
The study found that the gender pay gap is widest in the informal sector, where women earn over 40 percent less per hour than men. In the formal private sector, the gap is slightly narrower, and lowest in the public sector, where wage structures are regulated and pay scales standardized.
'The informal sector, where a significant proportion of women are employed, exhibits the highest gender pay gap, primarily due to the lack of oversight, low unionization, and absence of formal wage-setting mechanisms,' the report said.
The ILO also cited the impact of occupational segregation. Women are underrepresented in higher-paying roles and overrepresented in sectors such as domestic work, education, and agriculture, which are often undervalued.
To address these gaps, the report outlines a number of recommendations, including expanding formal employment opportunities for women, enforcing minimum wage laws and pay transparency measures and developing gender-responsive social protection systems. It also recommends strengthening labor inspection and legal enforcement, particularly in the informal sector, and investing in sex-disaggregated data collection to better monitor wage trends and disparities.
The ILO also urged Pakistan to ratify and implement international conventions on equal pay and non-discrimination, including ILO Convention No. 100 (Equal Remuneration) and No. 111 (Discrimination in Employment and Occupation).
The report underscores that eliminating gender-based wage disparities is not only a matter of justice, but also critical for boosting economic productivity and household welfare.
'Addressing the gender pay gap is essential to achieving inclusive economic growth and meeting Pakistan's commitments under the Sustainable Development Goals,' the ILO concluded.