According to the ADP Research Institute’s People at Work 2023: A Worldwide Workforce View study, although the gender pay gap remains a worldwide problem, India is making significant gains in tackling it.
According to the analysis, which is based on a survey of over 32,000 workers in 17 countries, wage increases in 2022 would average 6.7% for men and 6% for women globally. India, on the other hand, has made progress in this area, with the gender pay gap being smaller than the worldwide average.
Indian males got an average wage increase of 7.2%, while women experienced a pay increase of 7%. Looking forward a year, Indian men and women anticipate their salary to rise at the same pace of 8%, showing that gender pay equality is becoming a reality in the Indian workforce.
A sizable majority of poll respondents (63%) expressed confidence in their company’s progress toward gender pay equality during the previous three years. This outnumbers nations in the larger Asia-Pacific (APAC) area, which includes Australia (34%), China (51%), and Singapore (31%).
‘While males earned somewhat bigger pay rises last year, they are still more likely than women to be dissatisfied with their salary. Only 25% of males think they are appropriately paid for their work, whilst a much higher 31% of women are satisfied with their present income. Furthermore, 49% of all workers continue to believe they are underpaid, while just 17% believe they are overpaid.
Last year, senior workers received much bigger pay rises, with those aged 55 and overtopping the field, obtaining an astounding average pay increase of 10%. Individuals starting in their professions (aged 18-24) had a much lower average salary increase of 6%. The 25-30 age group earned a 7% raise, while the 35-44 and 45-54 age groups received 8% increases. The pattern exemplifies India Inc.’s approach to compensating senior executives for their expertise and valuable abilities.
This tendency extends to expectations for prospective pay raises, with workers aged 55 and above predicting the greatest average salary increase of 11%. In contrast, individuals aged 35-44 years and 45-54 years are expecting 9%, while those in the 25-34 age bracket are expecting 8%, and the youngest workers in the 18-24 age bracket are expecting 7%.
Rahul Goyal, Managing Director, ADP India & Southeast Asia, said, “While rewarding experienced talent is essential, it’s equally vital to meet the expectations of the youngest generation entering the job market. Ignoring the compensation needs of Gen Z could prove short-sighted, leading to low morale among younger employees and failure to engage with the next generation. Embracing and meeting their expectations at the workplace is not just an immediate concern but a strategy for long-term success.“
