Gender Wage Gap in India – Insights from PLFS 2025

Gender Wage Gap Latest News

• The Periodic Labour Force Survey (PLFS) 2025 shows higher wage growth for women than men, but persistent gender wage inequality. 

Gender Wage Gap in India

• The Gender Wage Gap refers to the difference in earnings between men and women for similar work or across sectors. 
• In India, this gap reflects structural inequalities in employment opportunities, skill access, and labour market participation.
• Nature of the Wage Gap
  • Women earn less than men across all job categories.
  • The gap varies by type of employment, such as salaried jobs, casual labour, and self-employment. 
  • Informal sector dominance and occupational segregation worsen the disparity. 
• Causes of Wage Inequality
  • Lower female labour force participation. 
  • Concentration of women in low-paying and informal jobs. 
  • Limited access to education, skills, and capital. 
  • Social norms and unpaid care responsibilities. 
• Significance
  • Reducing the gender wage gap is essential for inclusive economic growth.
  • It enhances household incomes, boosts productivity, and improves gender equality outcomes.

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News Summary

• The PLFS 2025 data presents a mixed picture of progress and challenges in India’s labour market, particularly with respect to gender-based wage disparities.
• Employment Levels
  • About 61.6 crore people were employed in India in 2025.
  • Male workers: 41.6 crore. 
  • Female workers: 20.0 crore. 
  • This indicates a significant gender gap in overall employment levels.
• Higher Wage Growth for Women
  • According to the data, women’s wages grew faster than men’s across all job categories in 2025.
  • Salaried jobs: Women’s wages grew by 7.2% compared to 5.8% for men. 
  • Self-employment: Women’s earnings rose by 8.8%, slightly higher than men’s 8%. 
  • Casual labour: Women’s wages increased by 5.4%, while men’s wages declined marginally by 0.2%. 
  • This indicates a positive trend in wage growth for women, suggesting gradual improvements in labour market conditions.
• Persistent Wage Inequality
  • Despite faster growth, the wage gap remains substantial.
  • In salaried jobs, women earned only 76% of male earnings. 
  • In casual labour, women earned 69% of male wages. 
  • In self-employment, women earned just 36% of what men earned. 
  • This highlights that higher growth rates are not sufficient to bridge the existing disparity.
• Changes in Employment Structure
  • The survey also shows improvements in the nature of employment.
  • The share of women in salaried jobs increased to 18.2% in 2025 from 16.6% in 2024. 
  • Self-employment among women declined, indicating a shift toward better-quality jobs. 
  • Casual labour participation also increased slightly. 
  • Salaried jobs are considered more secure as they provide social security benefits and a stable income.
• Overall Labour Market Trends
  • The broader labour market indicators also show gradual improvement.
  • Rural unemployment declined to 2.4% from 2.5%. 
  • Urban unemployment fell to 4.8% from 5%. 
  • Youth unemployment declined to 9.9% from 10.3%. 
  • However, female youth unemployment increased slightly, indicating persistent gender-specific challenges.
• Labour Force Participation
  • Labour force participation trends present a mixed picture.
  • Rural LFPR declined slightly to 62.8%. 
  • Urban LFPR remained stable at 52.2%. 
  • A decline in LFPR suggests that fewer individuals, especially in rural areas, are actively seeking employment.
• Informal Sector Concerns
  • The data also reflects slowing momentum in the informal sector.
  • Wage growth in the informal sector was only 3.9% in 2025. 
  • Job creation slowed significantly, with fewer establishments being added. 
  • Since a large proportion of women are employed in the informal sector, this has important implications for gender equality in earnings.

Source: IE