Gender Pay Gap

Meaning & Definition

Gender Pay Gap refers to the differences between men’s and women’s average earnings. It illustrates the unfairness of how people are either disqualified from participating equally in the economy (e.g. by being discriminated against) or not able to complete their careers (e.g. by being denied jobs because they take time off work). In HR, addressing the Gender Pay Gap is important for establishing fair compensation practices and equality in the workplace.

Important Feature of the Gender Pay Gap

• Encourages fair, equitable compensation practices.
• Helps HR to identify and eliminate wage discrimination.
• Builds employee trust, morale, and retention.
• Supports and enhances efforts to improve diversity, equity, and inclusion (DEI) initiatives.
• Builds employer brand image and integrity.

Policy & Compliance Guidelines 

• Code on Wages 2019 prohibits discrimination against workers based on their gender. 
• The Equal Remuneration Act (ERA) 1976 has required equal pay for equal work since that era; this has been integrated into the Code on Wages as part of its combination of labour laws. 
• Employers must ensure that they have policies that provide fair pay and non-discriminatory methods of determining compensation.