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Business Recorder
23-07-2025
- Business
- Business Recorder
Women still paid less
'The gender pay gap in Pakistan is high from an international perspective', proclaims the ILO Gender Pay Gap in Pakistan Report 2025, which is a detailed empirical analysis and policy implications endeavor by the ILO Country Office. A joint Foreword penned by ILO Country Office and Federal Ministry of Overseas Pakistanis and Human Resource Development states that 'The persistence of the gender pay gap (GPG) is one of the clearest indications of gender inequalities in the labor market. The GPG implies that women earn less than men for the same work, or for work of equal value. It exists for a range of reasons, including vertical segregation in the labor market and the presence of a penalty against 'feminized' occupations. The GPG also perpetuates gender inequalities outside of the labor market. In particular, a large gap decreases the incentives for women to pursue education, enter the labor force and progress in their careers. This, in turn, perpetuates the unequal distribution of unpaid care work and unequal bargaining power within the household. Reducing the GPG is, therefore, important from multiple perspectives.' Women all over the world face various gender-based prejudices but continue their struggle to attain equality. Acknowledging the significance of women and their remarkable competences and potentials is imperative for them to get equal recognition. The acknowledgment is mostly in rhetorical speeches and vague commitments despite the fact that discrimination is systemic, especially in a patriarchal ecosystem. Credit is of course due to enlightened employers who endeavor to provide a level playing field to women employees and who go the extra mile to implement fair and gender-neutral policies in recruitment, in privileges, and in promotions. Planning and approving the induction of women employees in the enterprise requires a comprehensive and pragmatic decision-making attitude since it is a precursor to a healthy, facilitative, and gender-equality dynamics. The question then still hovers beyond the employment landscape. Why do women get paid less than their male counterparts? The ILO Report has done a deep dive study, taking into account the disparities. Using data from the country's Labour Force Surveys from 2013 to 2021, it offers updated estimates of the level of the gap, as well as the main drivers behind it. Moreover, the GPG is larger in agriculture and manufacturing compared to the service sector. Highlighting the LFS, the Report notes that 'discrimination likely plays an important role in explaining the gender pay gap, and that discrimination is most prevalent in the informal economy and low paid jobs. The data shows that the GPG decreased by approximately eight percentage points in Pakistan between 2018 and 2021 when measured using both hourly and monthly wages. This observed decline can principally be attributed to a reduction in the contribution of the unexplained component of the gap. While this unexplained component still accounts for most of the GPG, especially at the bottom of the wage distribution, its role has decreased in recent years'. The role of Employers and Workers Federations, as well as the women politicians and social activists, need to be considered too. Every year, International Women's Day is celebrated widely by nearly all of them. Seminars, rallies, marches, and banners are a common feature. Speakers and experts talk passionately about gender equality, discrimination, women rights, and what not. Many such seminars and conferences are held in plush hotels where the women workers are relatively less in attendance. Resolutions are presented and approved but the next day it is back to normal. The female workers continue to walk few miles or take a rickety bus to work, put in long hours, and then face the ordeal of reaching home to take care of family chores. Most of them are resigned to accepting a lower paycheck, and if working in the agriculture sector, may be working without emoluments. Women Parliamentarians usually have a nonchalant attitude towards women workers. Take ILO Convention 190 on Harassment and Violence in the World of Work. It has been six years since the ILO International Labour Conference in Geneva adopted this Convention. However, Pakistani Parliamentarians have other priorities to tackle instead of ratifying C190. Probably, a large majority of women Parliamentarians are least bit concerned nor have any knowledge about this essential Convention. Another depressing factor is that the Boards and Executive Committees of Employers and Workers Federations are mostly male-oriented, and some have token women representation. Obviously, this male-dominant culture negatively impacts on fighting for rights of women. Media must also promote gender equality and equal pay and rights. There is a tendency in soap operas where in more ways than one, the male character in various plays and serials is primarily more dominant, depicting his 'importance' in office or place of work, and seemingly very dictatorial. If women are demeaned through any character in these dramas, there is generally a muted response from social activists as well as from women-based organizations. The ball is in the court of women too. The Report reveals that 'Pakistan has the largest gap between men's employment rate (79.2 per cent) and women's employment rate (23.2 per cent in 2021) in the South Asia region. This employment gap has not substantially decreased over the last decade. Women account for just 13.5 per cent of employees in Pakistan' and 'on average, the GPG in Pakistan is larger among older workers, individuals with low levels of educational attainment, informal workers and individuals working in the private sector'. The Report further states that 'In occupations where men are more highly educated than women – such as craft and related trades, as well as elementary occupations – the GPG is even larger'. It lists three factors that partially motivates GPG. 'The first is occupational segregation, whereby women are concentrated in lower-paying sectors and jobs, where wages are lower than in male-dominated sectors or jobs. The second is a lack of transparency in salary structures. Specifically, many organizations do not disclose their salary ranges, which can perpetuate unequal pay practices and make it difficult for women to advocate for fair wages. Third, the presence of direct discrimination and gender bias in salary negotiations appear to contribute to the persistent gender pay gap, whereby women are paid less than men in the same roles in a company'. Employers Federation of Pakistan (EFP) has been in the lead in motivating and sensitizing entrepreneurs regarding women empowerment, gender equality and equal pay. EFP will now seriously study the Report and go full force to motivate member enterprises to revisit their established policies, if any, of employing women at a lower wage in comparison to male workers. Member companies would be encouraged to increase women employment and, if needed, upskill and mentor them for promotion and more managerial responsibilities. Companies must adopt an honest approach that goes above and beyond in nurturing women right from the start of their careers. They must implement fair and gender-neutral policies prioritizing individual skills and talent during recruitment. It is time to end gender stereotypes and biases affecting hiring, promotions and workplace dynamics. The overarching goal is to achieve systemic changes that would advance women in their careers instead of cosmetic implementation of gender-centric policies that look impressive on paper. Geir Thomas Tonstol, Country Director, ILO Islamabad Office, encouragingly offered that 'ILO is committed to providing targeted technical assistance that supports the development of wage-setting mechanisms promoting fairness and equity, across both formal and informal sectors. Our aim is to ensure that pay systems are transparent, responsive to sectoral realities, and aligned with principles of equal remuneration for work of equal value'. Copyright Business Recorder, 2025
Business Recorder
17-07-2025
- Business
- Business Recorder
Pakistan has largest gender employment gap in South Asia, significant pay disparity: ILO
A new report by the International Labour Organisation (ILO) highlights significant gender inequalities in Pakistan's labour market, revealing the largest gap between men's and women's employment rates in South Asia and a substantial gender pay gap. The 'Pakistan Gender Pay Gap Report 2025', based on data from national Labour Force Surveys, indicates that Pakistan's male employment rate stands at 79.2 percent, while the female employment rate was 23.2 percent in 2021. This employment gap has not significantly decreased over the past decade. The report further notes that the relatively few women who are employed are less likely than men to work as wage employees, the category used for estimating the gender pay gap. Instead, women are more likely to work as contributing family workers within the self-employed category. As a result, women constitute only 13.5 percent of employees in Pakistan. The data also shows that women in wage employment are more likely to have higher levels of education than their male counterparts. Additionally, female employees are more frequently found in the public sector, formal employment, and jobs with permanent contracts, as well as in professional occupations and larger firms. Pakistani women in wage employment are also more likely to work part-time, potentially to balance work with disproportionate household care responsibilities. Despite these characteristics, the report reveals that women in wage employment earn substantially lower wages than men. After accounting for differences in the distribution of male and female wage employment, women earn, on average, between 25 and 30 percent less than men. When considering monthly wages, the gap is 30 percent due to women working fewer paid hours on average. PSX's commitment to gender equality From an international perspective, Pakistan's gender pay gap is considered high, around10 percentage points higher than the global average and 10 percentage points higher than the average for lower-middle-income countries, Pakistan's income group. It is also higher than values recorded in other South Asian countries like Sri Lanka and Nepal with available information. The report indicates that the gender pay gap in Pakistan is generally larger among older workers, individuals with low educational attainment, informal workers, and those in the private sector. Conversely, it is smaller among highly educated and younger individuals. The gap is also more noticeable in agriculture and manufacturing compared to the service sector. Regarding the causes, the report suggests that the gender pay gap is either small or non-existent in the public sector and formal economy. This points to a potential link with a lack of compliance with labour legislation, which is more prevalent in the private sector and informal economy. The increase in the gender pay gap with age may be attributed to women opting for more flexible, lower-wage work arrangements, such as part-time employment, after childbirth. For women with low education levels, the gender pay gap exceeds 40 percent, while it is less pronounced for those with higher education, suggesting that education may partially mitigate some obstacles to quality jobs. CM launches Gender Parity Report 2024 of KP govt A decomposition analysis in the report confirms that the gender pay gap, particularly among low-income workers, remains largely unexplained by observable factors. This implies that women earn significantly less than men even with comparable observable characteristics that should yield similar wages. Potential reasons include occupational segregation, where women are more likely to be employed in lower-paying jobs or sectors, a lack of transparency in company pay structures, and discriminatory pay practices.
