Gender Wage Gap

Meaning & Definition

The gender wage gap is the difference in average pay between women and men who perform similar work. In HR, it sheds light on pay differences and discrimination, and other reasons for this type of imbalance, such as their job roles and taking breaks from their careers. Reducing the gender wage gap will facilitate fair compensation, equal recognition, and an inclusive work culture.

Important Aspects of the Gender Wage Gap 

• Promotes fair treatment and equal pay opportunities throughout the company.
• Supports in identifying and eliminating any pay inequity.
• Increases employee confidence, happiness, and ability to remain with the company.
• Strengthens diversity, equity, and inclusion initiatives.
• Supports employer branding and compliance with labor laws.

Compliance & Policy Considerations 

• Code on Wages 2019 prohibits gender based wage differentiations between men and women to ensure Equal Payment for Equal Work 
• The Equal Remuneration Act of 1976 ensures Equal Payment for both genders, which was sometime after the Code of Wages was passed into Law.