Pakistan among countries with highest gender pay gap

Pakistan's GPG stands at 25% with women earning Rs750 for every Rs1,000 earned by men, ILO report reveals.

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Pakistan continues to face a significant gender pay gap (GPG), with women earning considerably less than men, according to a recent report by the International Labour Organisation (ILO).

The disparity in wages places Pakistan among the countries with the highest GPG globally, particularly in terms of employment rates between men and women.

The report reveals that Pakistan's GPG stands at 25% based on hourly wages, with women earning Rs750 for every Rs1,000 earned by men. When considering monthly wages, the gap increases to approximately 30%, partly due to women working fewer hours on average.

The report highlights that a substantial portion of this gap cannot be attributed to differences in factors such as education, age, or skills, suggesting potential discrimination in the labour market.

In comparison to other South Asian nations, Pakistan’s GPG remains notably higher. Sri Lanka’s GPG based on hourly wages is 22%, while Nepal’s stands at 18%, and Bangladesh reports a negative gap of -5%.

However, the report notes a slight reduction in Pakistan’s GPG over the years, with the figure having been as high as 33% in 2018.

The GPG in Pakistan is less pronounced in the formal economy, where it is almost negligible. However, the gap widens significantly in the informal and household sectors, with disparities exceeding 40%.

The report also indicates that compliance with labour laws in the formal sector, especially in the public sector, helps narrow the pay gap.

Despite international conventions like the ILO's Equal Remuneration Convention (1951), which calls for equal pay for equal work, the gender pay gap persists, underscoring ongoing inequality between men and women in the workforce.