Pay Parity : Are We Any Closer To Bridging The Gap?
The moment you read the term ‘Pay Parity’, the first thought that strikes you is how women are paid less and men get paid more for the same amount of work, competence and integrity. We have all been victims of it and I have reasons to believe that professionals from the unorganised sector continue to be so. A recent discussion with a friend who had taken maternity leave in the corporate sector revealed that only lip service is being done as far as the adherence to Code of Wages, 2019 and Article 15(3) or Article 39(d) of the Constitution of India. As per her, she was behind her annual appraisal, the good projects were given to her male colleagues and she was not quite sure if she felt welcomed in the organisation to which she gave some good years of her life.
One may feel that this story exists in the corporate world only. Not quite. A client of mine who is in the armed forces had taken leave at the time of childbirth and as a result was unable to continue with the mandatory qualifying training for promotion to Senior-Time-Scale. Her juniors (read male colleagues) who had joined the services much later, were able to take the training but she was told that since she had voluntarily missed the qualifying training and was not in ‘shape’, she cannot be promoted. After a long drawn battle, the Hon’ble Court, ruled in her favour and she was given the promotion with her seniority protected. However, she continues to fight now for getting the same salary as her junior in the services.
According to the International Labour Organisation, gender pay parityalludes to the difference in average wages betweenwomen and men who are in employment. Gender pay parity is used as a common indicator of gender inequality in the world and also used to monitor progress towards gender equality at the national or international level.As per World Economic Forum (WEF), India’s position was 108th in gender gap index in 2018.
India being a signatory of UDHR by UN ratified the Equal Remuneration Convention of ILO held in 1951. In consonance of the convention, India enacted Equal Remuneration Act in the year 1976, subsequently in the year 2019 repealed by Code of Wages 2019, which prohibits parities in remuneration for men and women for the equal pay for equal work.
The change in order to close the gap in pay parity lies in policy making. The legislation has to be drafted in such a manner as to provide gender neutrality, not necessarily equality. Few important points that should be borne while formulating the policy:
- Women should not be penalised for having children. Even if the organisation is giving maternity benefits, under the garb of showing that one is pro-women or a gender neutral organisation, no hidden disadvantages should be practiced.
- The salary structure should be out in the open. The small disclaimer in the end of an appointment letter that prohibits you from discussing your salary with your colleagues is a misnomer. Till such time that such misconceived and mischievous terms find their way in the HR manual, a strong disservice is done to women.Transparency in the pay/salary is the need of the hour to bring about any equality in pay between women and men.
- Most of the time, determination of salary is made on the previous salary drawn. Since women typically start at a lower salary, the increment or raise when they switch jobs or get promoted does not enable them to draw the same salaries as their male colleagues. This practice should be done away with. The salary structure must be based on the position, work and competency of the employee and what they bring to the job despite various challenges.
- As women, we are always scared to ask for what we are worth. Organisations have to run training programs to let women find their voice as far as financial equality is concerned. This is not only limited to organisations but this disparity is seen in family setups as well, where the male member of the family would control the finances, even the salary earned by women.
- At the end of it all, gender neutrality is important and it should be practiced effectively to bridge the gap. Rules and regulations should be devoid of any disparities in the organisation.
About the Contributor:
LWL Titan, Pallavi Pratap is Advocate on Record and Managing Partner of Pratap & Co, a law firm focussed on litigation. She was chosen as “40 under 40” Lawyers and Legal Influencers by BW Business World Magazine.
She has over a decade of experience and regularly appears before the Hon’ble Supreme Court, High Courts, National Company Law Tribunals, Consumer Commissions, National Green Tribunal and various Arbitrations.
She is an MBA in finance from La Trobe University, Melbourne, Australia and brings with her a unique understanding of Corporate Law and Mergers and Acquisitions being a former Investment Banker.
She has been actively involved in cases pertaining to Company Law, Insolvency and Bankruptcy Code, White Collar crimes and Criminal matters, Family Law Cases, Environment Laws, Consumer Protection Act, Arbitration Laws.