Equal Pay Webinar

1. What is Equal Pay ?

In the Indian Constitution aim to give equal chances for all people , irrespective of gender. The significance of providing equal compensation for equal work for men and women is been levied in Article 39(d)3.

Equal Pay means, men and women should be paid equally even when they are performing identical jobs based on the their merit and experience.

2. Why ‘equal pay for equal work’ is the need of the hour?

Gender based inequality is a global issue that has an impact on many nations .The average salary gap between men and women is 25%. Women’s equal pay has been a cause supported by those who value justice and gender equality. Women’s sense of equality and worth, paying them less than men has serious negative effects on the economy and society.

There are numerous advantages to ensuring women receive equitable compensation. It increases productivity, strengthens employee relationships, and sends a clear message about the organization’s values. T

The global GDP could rise by $12 trillion by 2025 if women’s pay scales were the same as those of their male counterparts everywhere.

3. What does gender pay gap occur?

Gender pay gap come into existence when an employee Is paid less for the same job based on their gender is wrong, unethical and illegal. And yet, the pay gap exists. The main reason for this is due to women not being equally represented in senior positions and/or working primarily in low-skilled or part-time roles. It is very common in the organization where the senior most positions are dominated by Male.

4. How many types of Gender pay gap are there?

There are two types of gender pay gap, the controlled and uncontrolled gap. The controlled gap measures the difference in pay between men and women performing the same job, with the same experience and qualifications. The uncontrolled gap represents the overall difference in pay between men and women, considering all the jobs and industries in which they work.

5. What is the wage gap currently?

• Women earn an average of 16% less than men.
• The controlled gender pay gap, which considers factors such as job title, experience, education, industry, job level and hours worked, is currently at 99 cents for every penny men earn.

6. How to calculate pay gap in the organization?

Calculating the average/mean salary of the male employees in the organisation and then, doing the same with that of the women staff. For instance, if the average man earns Rs 40,000 and the average woman earns Rs 35,000, the difference in their salaries will be Rs 5,000.

7. What are Pay Metrics?

Companies can keep an eye on whether their pay policies and benchmarks are being met by using compensation metrics .In any compensation analysis, a business should take into account these six metrics.

• Total Cost of workforce The total amount of money an organization spends on its workforce including employee benefits, hiring, equipment’s and trainings is known as total cost of workforce.
• Pay range The salary range, also known as pay, establishes the upper and lower levels for a given position. The average of the lowest and highest pay for a position, falls within the pay range and is usually regarded as the market rate for a given job. When we have new hires in the organization their salaries and considering pay increase for current employees.
• Compa ratio The Compa- ratio also known as comparison ratio takes into account an employee pay where it stands in relation the average market pay .In terms of math, the computation would be the employee’s pay divided by the salary that the employer is comparing.
• Internal Equity The metrics used to compare the salaries of the employees in similar roles across the entire organization is called internal equity. Using this data, HR professionals can ensure pay equity, or providing equal compensation for equal work, and end the long-standing practice of underpaying certain people because of their gender, race, or membership in a protected class. Employers can identify and address discriminatory pay practices and prove that their pay policies are equitable by calculating internal equity.

8. What are the Benefits of Equal Pay

Regardless of gender discrimination, equal pay is guaranteed by Equal pay act of 1963. No employer subject to any provision of this section “shall discriminate on the basis of sex,” according to the EPA. According to the law, employers are not allowed to discriminate in hiring or benefiting employees based only on their sex.

It encourages:

• Economic Boost
• Creates positive environment in your organisations and supports the values.
• It Increase efficiency and productivity by attracting the best employees and reducing staff absence and turnover.
• Form a key part of your organisation’s corporate social responsibility.

9. How to overcome the equal pay issue?

• Conduct a equal pay audit
• Stabilize recruitment and increments policies as per the market survey
• Make sure women are given equal opportunities to grow on the ladder.
• Encourage Salary negotiation

10. How can gender pay gap helps economy?

All employees benefit from improved working conditions when their employers support gender equality. It is easier to hire and retain the best employees when men and women are paid equally for their contributions and for their actual skills. The overall economy gains from this as well. The economy and society as a whole lose out on the underutilization of women’s skills. Women are discouraged from entering or remaining in the workforce when their pay does not align with their level of education and experience. This results in a labour market that is less efficient than it would be in the ideal scenario. This is a more urgent issue due to declining birth rates and an aging population. Finally, closing the gender pay gap contributes to creating a more equal society and helps to achieve financial and economic independence for all.

Conclusion

India, have implemented legislation like the Equal Remuneration Act in 1976 to safeguard against wage discrimination and exploitation of women.?In addition to giving people the opportunity to live more satisfying lives, this would also increase their economic potential, boosting the economy and assisting in the reduction of family poverty.