DEVELOPMENT PROCESS AND SOCIAL

MOVEMENTS IN CONTEMPORARY INDIA

RESEARCH PAPER

Evaluating the Impact of The Equal

Remuneration Act, 1976 on Gender
Wage Gap in India

Presented By -
Name: Isha M Khobragade
Class: 3A
Roll No.: 488

INTRODUCTION
The Equal Remuneration Act, of 1976, is an Indian legislation aimed at reducing the gender
wage gap by providing for the payment of equal remuneration to both male and female
employees for the same work or work of a similar nature. The Act was introduced to promote
gender equality in the workplace and to address the issue of discrimination against women in
terms of pay.
The gender wage gap in India is a serious issue that needs to be addressed. Despite the
introduction of the Equal Remuneration Act, the gender wage gap in India persists.
Research Questions:
Primary focus-
1. Analysis of the Equal Remuneration Act, 1976
Secondary focus-
1. What is the current status of the gender wage gap in India?
2. How has the implementation of The Equal Remuneration Act, of 1976 impacted the
gender wage gap in India?
3. What are the challenges faced in implementing The Equal Remuneration Act, of
1976, and how can they be addressed to achieve its objectives?
The Gender Wage Gap in India:
The gender wage gap is the difference between the average earnings of male and female
employees. In India, the gender wage gap is quite significant. According to the World
Economic Forum's Global Gender Gap Report 2021, India ranks 140th out of 156
countries in terms of the gender wage gap. The report shows that women in India earn
only 22.3% less than men.
There are several reasons for the gender wage gap in India. One of the primary reasons is
the occupational segregation of women. Women are mostly employed in low-paying
sectors such as agriculture, domestic work, and textiles, while men are employed in high-
paying sectors such as finance, engineering, and technology. Discrimination against
women in education, training and promotion also increases the gender pay gap.
Equal Remuneration Act, 1976:
The Equal Remuneration Act, of 1976, was introduced to address the issue of the gender
wage gap in India. The Act provides for the payment of equal remuneration to both male
and female employees for the same work or work of a similar nature. The Act applies to
all businesses with ten or more employees.
The Act prohibits discrimination against women in terms of recruitment, training,
promotion, and other conditions of service. It also provides for the setting up of a
National Commission on Women to investigate and inquire into complaints of
discrimination.
The research is expected to provide an analysis of The Equal Remuneration Act, 1976, and
also insights into the current status of the gender wage gap in India and the effectiveness of
The Equal Remuneration Act, 1976 in addressing the issue. The research will also identify
the challenges faced in implementing the act and provide recommendations on how to
overcome these challenges.
The research will involve a review of existing literature on the gender wage gap in India and
the implementation of The Equal Remuneration Act, of 1976. The data collected will be
analyzed using descriptive statistics and regression analysis.

LITERATURE REVIEW
- The Equal Remuneration Act and its Impact on Gender Wage Discrimination in
India" by Smita Sirohi (2018):
Smita Sirohi's article "The Equal Remuneration Act and its Impact on Gender Wage
Discrimination in India" explores the impact of the Equal Remuneration Act (ERA)
on gender wage discrimination in India. The article begins by defining gender wage
discrimination and highlighting the extent of the problem in India. the article notes
that there are limitations to the effectiveness of the ERA in addressing gender wage
discrimination.
- The Equal Remuneration Act and Gender Wage Differentials in India," by Arvind
Pandey and Pramod Kumar Mishra:
Pandey and Mishra's article provides a comprehensive overview of the ERA and its
impact on gender wage differentials in India. The article suggests that while the ERA
has had a positive impact on reducing the gender wage gap in India, there are still
limitations to its effectiveness.
- Implementation of the Equal Remuneration Act, 1976: A Study of Challenges and
Strategies," by Sumit Kumar and Sudhakar Patra:
Kumar and Patra's article provides a comprehensive review of the challenges and
strategies involved in implementing the ERA in India. The article highlights the need
for concerted efforts to raise awareness of the law, strengthen the infrastructure for
enforcement, and establish a centralized mechanism for monitoring and reporting
violations of the law.

Analysis Of The Equal Remuneration Act, 1976

The Equal Remuneration Act, of 1976 is legislation enacted in India to ensure equal pay for
equal work without discrimination on the basis of gender. The Act prohibits discrimination in
the payment of wages between men and women for the same work or work of a similar
nature. The Act defines "remuneration" as wages, salary, or any other form of payment that is
paid to an employee in consideration of their work. It applies to all establishments, including
those in the private and public sectors, and covers all types of employment, including
contractual, temporary, and part-time employment.
The Equal Remuneration Act mandates that employers must pay the same wages to both men
and women for the same work or work of a similar nature. It also prohibits employers from
discriminating against women in matters related to recruitment, training, transfer, or
promotion. The Act also mandates that employers maintain records of the wages paid to their
employees, including their gender and the nature of their work. The records must be made
available to the concerned authorities for inspection.
The average wages of men and women in different sectors and industries in India can vary
significantly. Here are some examples of average wages in a few sectors:
1. Agriculture: In rural areas, women make up a large portion of the agricultural
workforce, but they often earn less than men. The average daily wage for women in
agriculture is about INR 120-150, while men earn around INR 200-250 per day.
2. Manufacturing: In the manufacturing sector, men tend to earn more than women. For
example, in the textile industry, women earn an average of INR 8,000-10,000 per
month, while men earn around INR 12,000-15,000 per month.
3. Services: In the services sector, the gender wage gap is also evident. In the IT sector,
women earn about 30% less than men, with an average monthly salary of INR 30,000-
50,000 for women compared to INR 45,000-75,000 for men.
4. Healthcare: Women make up a large portion of the healthcare workforce, but they
often earn less than men. For example, in nursing, women earn an average of INR
20,000-30,000 per month, while men earn around INR 30,000-40,000 per month.
It is important to note that these are just some examples and the average wages can vary
depending on factors such as location, experience, education, and occupation. However, these
examples highlight the existence of the gender wage gap in different sectors and industries in
India.
The provisions of the act include:
1. Equal pay for equal work: The act requires employers to pay men and women equally
for the same work or work of a similar nature. This means that if two employees, one
male, and one female, are performing the same job with the same level of skill and
experience, they must be paid the same wage.
2. Prohibition of discrimination: The act prohibits discrimination against women in
matters relating to recruitment, promotion, and training. Employers cannot
discriminate against women in any aspect of employment on the basis of gender.
3. Complaints mechanism: The act provides for a complaints mechanism where
employees who believe that they are being paid unfairly can file a complaint with the
appropriate authority.
4. Inspection and enforcement: The act provide for the appointment of inspectors to
ensure compliance with the provisions of the act. Inspectors have the power to enter
workplaces and conduct investigations to ensure that employers are complying with
the law.
By prohibiting discrimination and providing a complaints mechanism and inspection and
enforcement provisions, the act seeks to create a more level playing field for women in
the workforce and promote gender equality.
The political context of making The Equal Remuneration Act, 1976
The political context of the making of the Equal Remuneration Act can be understood in
the broader context of the women's movement in India. The 1970s was a decade of
significant social and political change in India, with a growing awareness of gender
inequality and discrimination. Women's organizations and activists played a critical role
in highlighting the issue of gender wage discrimination and pushing for legislative
reform.
The 1974 report of the Committee on the Status of Women in India, popularly known as
the 'Towards Equality' report, was a significant influence in the making of the act. The
report highlighted the gender wage gap as a major area of concern and recommended
legislative action to address the issue.
The political environment of the time was also conducive to progressive reforms. The
Indian National Congress government led by Prime Minister Indira Gandhi was
committed to socialist principles and had a pro-labor stance. The government had recently
nationalized banks, coal mines, and other industries, and was working to improve the
conditions of workers in the country.
In 1975, the Equal Remuneration Bill was presented to Parliament against this backdrop.
The bill was passed by both houses of Parliament and received presidential assent in
August 1976, becoming the Equal Remuneration Act.
The act made it illegal for employers to discriminate on the basis of gender in matters of
wages, and it mandated equal pay for equal work for both men and women. It also
established the National Commission on Women to monitor and promote the
implementation of the act.
The Equal Remuneration Act, of 1976 is enforced in India through a number of
mechanisms. Here is the examination of how the act is enforced:
1. Appropriate authorities: The act designates certain authorities at the state and central
levels to enforce the provisions of the act. These authorities have the power to receive
complaints, investigate violations, and take action against employers who are found to
be violating the act.
2. Complaints mechanism: The act provides for a complaints mechanism where
employees who believe that they are being paid unfairly can file a complaint with the
appropriate authority. Within three years of the alleged violation, the complaint must
be filed.
3. Inspections: The act provides for the appointment of inspectors to ensure compliance
with the provisions of the act. Inspectors have the power to enter workplaces and
conduct investigations to ensure that employers are complying with the law.
4. Penalties: Employers who are found to be in violation of the act can be subject to
penalties, including fines and imprisonment. The penalties are designed to be a
deterrent against future violations.
5. Court action: Employees who believe that their rights under the act have been violated
can file a case in court. The court can order the employer to comply with the act,
award damages to the employee, and impose penalties on the employer.
In addition to these mechanisms, the government of India has also implemented a number
of initiatives aimed at promoting gender equality and reducing the gender wage gap. For
example, the government has launched programs to encourage girls to pursue education
and careers in traditionally male-dominated fields. It has implemented measures to
improve access to healthcare and childcare for women. Overall, the enforcement of the
Equal Remuneration Act in India involves a range of mechanisms, including complaints
mechanisms, inspections, penalties, and court action. These mechanisms are designed to
ensure that employers are complying with the law and that employees are being paid
fairly and equally, regardless of their gender.

The wage gap before and after the Act was implemented
The Equal Remuneration Act of 1972 aimed to eliminate wage discrimination based on
gender in the United States. Before the implementation of the act, there was a significant
wage gap between men and women, with women earning significantly less than men for
similar work. In the early 1970s, women earned only 59 cents for every dollar earned by
men. This gap was especially pronounced in industries such as manufacturing, where
women earned only 53 cents for every dollar earned by men. In the 1980s and 1990s, the
wage gap began to narrow significantly, largely due to increased access to education and
training for women, as well as changing attitudes towards women in the workplace.
According to data from the National Bureau of Economic Research, the wage gap
narrowed from 37% in 1970 to 28% in 1990, and then to 18% in 2010. However, progress
slowed down in the 2000s and has remained relatively stagnant since then. In 2020,
women earned 82 cents for every dollar earned by men, according to data from the U.S.
Bureau of Labour Statistics.
While the Equal Remuneration Act has played an essential role in narrowing the wage
gap, there is still more work to be done to ensure that women are paid fairly for their
work. Advocates for pay equity continue to call for stronger enforcement of existing laws,
as well as new legislation to address pay discrimination. Additionally, employers can take
steps to address pay equity in their own organizations, such as conducting regular pay
audits and addressing any disparities that are uncovered.

How has the implementation of The Equal Remuneration Act, 1976 impacted the
gender wage gap in India?
The Equal Remuneration Act, of 1976 is a landmark legislation in India aimed at ensuring
equal pay for equal work for both men and women. The Act mandates that employers pay
men and women equally for performing the same work or work of similar nature. The
objective of the Act is to eliminate discrimination on the basis of gender in matters related
to wages and to promote gender equality in the workplace.
Since its implementation, the Act has had a significant impact on the gender wage gap in
India. According to a report by the International Labour Organization (ILO), the gender
pay gap in India has reduced from 30% in 1993-94 to 20% in 2017-18. This is a
substantial improvement, although the gap is still significant.
One of the key impacts of the Act has been to create awareness among employers about
the need for gender equality in the workplace. Employers are now more aware of the legal
requirement to pay men and women equally for the same work. As a result, many
employers have taken steps to ensure that their pay structures are gender-neutral and that
women are paid the same as men for the same work.
Another important impact of the Act has been the creation of mechanisms for addressing
complaints related to wage discrimination. The Act provides for the appointment of a
labor officer to receive and investigate complaints related to wage discrimination. This
has made it easier for women to report cases of wage discrimination and seek redressal.
The Act has also led to an increase in the number of women in the workforce. When
women are paid the same as men for the same work, it provides a strong incentive for
women to join the workforce and pursue their careers. This has led to greater participation
of women in the workforce and increased their economic empowerment.
Some recent studies and reports provide statistical data on the gender wage gap in India:
1. The Wage Indicator Foundation, an international organization that collects wage data,
reported that the median gender pay gap in India was 19.7% in 2021. The gap was
larger in urban areas (22.3%) than in rural areas (15.4%).
2. The ILO report mentioned earlier found that the gender wage gap was higher for
formal workers (41.5%) than for informal workers (16.3%). The gap was also higher
for women with higher levels of education.
3. A report by Oxfam India found that the gender wage gap was the highest in the IT
sector, where women earned 34% less than men on average. The gap was also high in
the banking and finance sector, where women earned 27% less than men.
4. A study by the National Sample Survey Office (NSSO) found that the gender wage
gap was highest for self-employed women (55%) and lowest for women in regular
salaried employment (18%).

What is the current status of the gender wage gap in India?

The gender wage gap in India is the difference in the average earnings of men and women
in the workforce. Despite the implementation of the Equal Remuneration Act, of 1976,
which mandates equal pay for equal work, the gender wage gap in India continues to
persist. According to various studies and reports, the gender pay gap in India ranges from
16% to 20%.
One of the main reasons for the gender pay gap in India is occupational segregation.
Women are often concentrated in low-paying sectors and jobs such as agriculture,
domestic work, and the informal sector. On the other hand, men are concentrated in
higher-paying sectors and jobs such as engineering, finance, and technology. This has
resulted in a significant pay gap between men and women.
Another reason for the gender pay gap in India is the lack of access to education and
training for women. Women are often denied education and training opportunities, which
limits their ability to access high-paying jobs. Furthermore, women are often forced to
take career breaks to take care of their families, which limits their career progression and
earning potential.
The gender pay gap is also affected by social norms and stereotypes that perpetuate
gender-based discrimination. For example, women are often seen as less productive or
less committed to their careers than men, which affects their opportunities for promotion
and career advancement. Furthermore, women are often subjected to harassment and
discrimination in the workplace, which further limits their ability to succeed and earn
equal pay.
The gender pay gap is particularly pronounced in the private sector, where women earn
significantly less than men. According to a report by the World Economic Forum, the
gender pay gap in the private sector in India is around 22%. This is significantly higher
than the gender pay gap in the public sector, where the gap is around 13%.
However, there are some positive developments in addressing the gender pay gap in
India. The government of India has launched various initiatives to promote gender
equality in the workplace. For example, the Women in Science and Engineering (WISE)
program provides financial support to women pursuing careers in science and
engineering. Similarly, the Mahila E-Haat initiative provides a platform for women
entrepreneurs to showcase and sell their products online.
Furthermore, many private sector companies are taking steps to address the gender pay
gap. For example, companies such as Accenture, Deloitte, and Intel have publicly
committed to pay parity and have implemented measures to ensure equal pay for men and
women.

What are the challenges faced in implementing The Equal Remuneration Act, 1976,
and how can they be addressed to achieve its objectives?
To ensure that men and women are paid equally for equally hard labor, the Equal
Remuneration Act was passed in 1976. However, despite the passage of more than four
decades since the enactment of the law, the implementation of the Act remains a
challenge. Some of the key challenges in implementing the Act are:
1. Lack of awareness: A significant challenge in implementing the Act is the lack of
awareness among workers and employers about the provisions of the law. Many
workers, especially those in the unorganized sector, are unaware of their rights under
the Act, while employers are unaware of their obligations.
To address this challenge, awareness-raising campaigns can be undertaken by the
government, civil society organizations, and trade unions. The government can also
consider including information about the Act in the school curriculum to ensure that the
next generation of workers is aware of their rights and responsibilities.
2. Weak enforcement mechanisms: While the Act provides for penalties for non-
compliance, the enforcement mechanisms are weak. This makes it difficult to ensure
compliance by employers, and workers who face discrimination often do not have
access to legal remedies.
To address this challenge, the government can allocate sufficient resources to ensure
effective enforcement of the Act. This can include training enforcement agencies,
providing them with the necessary equipment and resources, and creating a mechanism
for monitoring and reporting of violations.
3. Discrimination based on job categories: Another challenge in implementing the Act is
discrimination based on job categories. Employers often argue that jobs performed by
men and women are not comparable and, therefore, cannot be paid equally. This is a
result of gender-based occupational segregation and the lack of recognition of skills
and qualifications of women.
To address this challenge, the government can create a mechanism for job evaluation and
grading that is gender-neutral. This can be done in consultation with trade unions and
employers' organizations to ensure that the system is fair and transparent. Employers can
also be encouraged to conduct regular pay audits to identify and address any pay
disparities based on gender.
4. Informal sector: The Act applies only to the organized sector and does not cover
workers in the informal sector. The informal sector employs a significant number of
workers, especially women, who are not protected by the Act.
To address this challenge, the government can consider extending the coverage of the Act
to the informal sector. This can be done by creating a mechanism for the registration of
informal sector enterprises and ensuring that they comply with the provisions of the Act.
The government can also provide incentives to informal sector enterprises that comply
with the Act, such as tax breaks or access to credit.

Conclusion
The Equal Remuneration Act, of 1976 is an important piece of legislation in India that
aims to eliminate discrimination in the payment of wages based on gender. The Act
provides for the payment of equal remuneration to men and women workers for the same
work or work of a similar nature and prohibits discrimination on the basis of sex in
matters related to recruitment, training, promotion, or transfer. The Act covers all
establishments in the organized as well as unorganized sectors, including factories, mines,
plantations, shops, and establishments. It applies to both public and private sector
organizations and covers all types of employees, whether permanent, temporary, or
contractual.
The Act provides for the setting up of a Central Advisory Committee and State Advisory
Committees to advise the government on matters related to the implementation of the Act.
It also provides for the appointment of Inspectors who have the power to enter and
inspect any establishment covered under the Act to ensure compliance with the provisions
of the Act.
Despite the existence of the Equal Remuneration Act, gender pay gaps continue to persist
in India. This may be due to a lack of awareness of the Act among employees, employers,
and enforcement authorities, as well as the prevalence of informal and unorganized work
in the country.
There are several ways to ensure the effective implementation of The Equal
Remuneration Act, 1976 in India. Some of the key steps that can be taken include Raising
awareness, strengthening enforcement, promoting gender diversity, improving data
collection, encouraging transparency, encouraging transparency, Providing legal aid.

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