INTRODUCTION:
Gender inequality is a pervasive issue across the world, and India is no exception. Despite significant progress in recent years, women in India continue to face a wide range of challenges in the workforce, including the gender pay gap and limited access to maternity benefits. The gender pay gap refers to the difference in earnings between men and women, and it persists across all industries and job types. Meanwhile, maternity benefits, which are intended to support women during pregnancy and childbirth, often result in career setbacks and reduced earning potential. This blog post aims to explore the complex interplay between the gender pay gap and maternity benefits in India. By examining the legal framework, implementation, and impact of these policies, we can better understand the challenges facing working women and identify solutions for achieving greater gender equality in the workplace.
THE GENDER PAY GAP IN INDIA :
CAUSES:
1. Discrimination[1]: Discrimination based on gender is a significant cause of the gender pay gap, where women are often paid less than men for the same work, even with similar qualifications and experience. Women are also underrepresented in higher-paying occupations and industries due to gender stereotypes and biases that assume women are less capable or suited for certain roles. These discriminatory practices not only perpetuate gender inequality but also affect women’s economic stability and financial independence.
2. Motherhood[2]: The gender pay gap is significantly impacted by motherhood as it often results in women taking time off work to care for their children. This break in employment can have long-term effects on a woman’s career advancement opportunities and earning potential. Women returning to work after having children face a “motherhood penalty” as they are paid less than their male counterparts and women without children due to assumptions that they are less committed to their jobs. Additionally, a lack of affordable and accessible childcare options further contributes to this issue.
3. Lack of workplace flexibility: The gender pay gap in India is influenced by several factors, including the additional responsibilities that women have outside of work, such as caring for family members and households. These responsibilities can affect women’s productivity and limit their opportunities for career advancement. Masculine work environments and tasks, such as heavy lifting and shifting, are also typically not suited for women, contributing to the gender pay gap. Unpaid care work, which is primarily done by women, further limits their time and energy for paid work and perpetuates the undervaluing of women’s work in society. Addressing these factors and promoting equal opportunities for women is critical to closing the gender pay gap in India.
Another undervalue affecting factor is Unpaid care work, such as taking care of children, elderly or sick family members, which is predominantly done by women in India. As a result, women have less time and energy to devote to paid work, limiting their career growth and earning potential. The undervaluing of unpaid care work in society also perpetuates the idea that women’s work is worth less, further contributing to the gender pay gap.
CONSEQUENCES:
1. Gender pay gap perpetuates gender inequality by undervaluing women’s work, leading to limited career advancement and unequal treatment. It results in a loss of economic potential and contributes to poverty and social exclusion for women.
2. The gender pay gap can lead to underutilization of women’s talent due to lack of equal opportunities, training, and promotions, resulting in a loss of productivity and creativity. Addressing the gap is crucial for equal opportunity and workforce development.
MATERNITY BENEFIT ACT IN INDIA: LEGAL FRAMEWORK AND IMPLEMENTATION
The legal framework for maternity benefits in India is primarily governed by the Maternity Benefit Act, 1961. The Act provides for a minimum of 12 weeks of paid maternity leave for women working in establishments with 10 or more employees[3]. It also mandates that women are entitled to an additional one month of leave if they have medical complications during their pregnancy or childbirth. In addition, the Act requires employers to provide nursing breaks to female employees for up to one year after the birth of a child.
Despite these legal provisions, many working women in India face significant challenges in accessing maternity benefits. One major issue is that the Act only applies to establishments with 10 or more employees, leaving a large proportion of women working in smaller enterprises without any legal protections. Additionally, many women face social stigma and discrimination in the workplace related to pregnancy and motherhood, which can lead to employers denying or restricting their maternity leave.
Inadequate enforcement mechanisms also pose a challenge to the effective implementation of maternity benefits. The government has been criticized for failing to adequately monitor and enforce compliance with the Act, and many women face difficulties in accessing their entitlements due to bureaucratic hurdles and lack of awareness about their rights. Overall, while the legal framework for maternity benefits in India is relatively robust, significant challenges remain in ensuring that women can effectively access and utilize these protections in practice.
THE IMPACT OF MATERNITY BENEFITS ON WOMEN’S CAREERS AND EARNING POTENTIAL
Maternity benefits are crucial for promoting gender equality and empowering women in the workforce. However, taking time off work for pregnancy and childbirth can have long-term financial costs and affect women’s career trajectories and earning potential. In India, where women face numerous challenges in balancing work and family responsibilities, maternity benefits can play a significant role in ensuring that women can continue to participate in the workforce.
According to the Maternity Benefit (Amendment) Act of 2017, Working mothers in India are entitled to 26 weeks of paid maternity leave, an increase from the previous 12 weeks. The act also requires employers with 50 or more employees to provide crèche facilities at or near the workplace (Government of India, 2017). These measures have the potential to improve women’s work-life balance and increase their retention in the workforce.[4]
Despite these benefits, there are still challenges that women face. One of the significant challenges is the stigma surrounding pregnancy and motherhood in the workplace, which can lead to discrimination and bias against pregnant women and mothers. This discrimination can affect women’s career opportunities and earning potential, as they may be passed over for promotions or not given challenging assignments due to assumptions about their commitment to work.[5]
In 2018, a study by the International Labour Organization found that women in India earn 34% less than men, and part of this wage gap can be attributed to the impact of motherhood on women’s careers (ILO, 2018). [6]Women who take time off for pregnancy and childbirth are often seen as less committed to their careers, and this can lead to them being paid less than their male colleagues.
However, research also shows that providing maternity benefits can have positive long-term effects on women’s earning potential. A study by the National Bureau of Economic Research found that maternity leave policies that provide job protection and replacement income can increase women’s lifetime earnings by 5-10% (Baker & Milligan, 2008). This increase is due to women being able to stay in the workforce and build their careers without interruption.[7]
In conclusion, while maternity benefits can help women balance work and family responsibilities, the impact of pregnancy and childbirth on women’s careers and earning potential needs to be addressed through workplace policies and cultural changes. Maternity benefits can have positive long-term effects on women’s earning potential, but more needs to be done to ensure that women are not discriminated against in the workplace due to assumptions about their commitment to work.
BEST PRACTICES FOR ACHIEVING EQUAL PAY AND SUPPORTING WORKING MOTHERS
In India, like many other countries, the gender pay gap persists and is a significant barrier to gender equality. However, there are several best practices that can help address the issue and support working mothers.
One such practice is increasing access to affordable childcare. The lack of affordable childcare is a major barrier to women’s labor force participation in India. Subsidies for childcare costs or employer-provided childcare facilities could help working mothers to balance their work and family responsibilities.[8]
Flexible work arrangements are another effective solution. Telecommuting or part-time work could be particularly beneficial for women who have young children or are caring for elderly relatives. A study by the University of Delhi found that women who have access to flexible work arrangements are more likely to continue working after having children.[9]
Lastly, promoting diversity and inclusion in the workplace is essential. Policies to prevent discrimination based on gender or family status, as well as initiatives to promote women into leadership positions, can help to address the gender pay gap and support working mothers.
These best practices have been successfully implemented in other countries, such as Norway and Canada, and could be adapted to the Indian context. For example, in Norway, employers are required to provide flexible work arrangements and have quotas for women on corporate boards. In Canada, subsidies are provided for employers who provide childcare facilities. Implementing these practices in India could help to close the gender pay gap and support working mothers, ultimately leading to a more equitable and productive society.
CONCLUSION:
The gender pay gap in India remains a critical issue for women’s careers and earning potential, despite the Maternity Benefit Act mandating paid leave for up to 26 weeks. Implementation of best practices like affordable childcare, flexible work arrangements, and workplace diversity and inclusion can help women balance work and family responsibilities, support their career development, and close the pay gap. Achieving equal pay is not only a legal requirement but also a fundamental human right, and crucial for ensuring gender equality and non-discrimination in the workplace.
[1] Internationa labour Law ,OpEd: The gender pay gap, hard truths and actions needed (ilo.org) (last visited on 20.04.2023) https://www.ilo.org/newdelhi/info/public/fs/WCMS_857392/lang–en/index.htm.
[2] Yaveline Aly , The Gender Wage Gap: Causes, Consequences, and Remedies [(2017] The Gender Wage Gap: Causes, Consequences, and Remedies (bridgew.edu) – https://vc.bridgew.edu/cgi/viewcontent.cgi?article=1258&context=honors_proj.
[3] Rakshit Assudani , MATERNITY BENEFITS IN INDIA: ANALYSING THE LEGAL FRAMEWORK AND LIMITATIONS – Centre For Labour Laws (nliu.ac.in) – https://cll.nliu.ac.in/maternity-benefits-in-india-analysing-the-legal-framework-and-limitations/.
[4] https://pib.gov.in/newsite/PrintRelease.aspx?relid=162074 (19.04.2023) – https://pib.gov.in/newsite/PrintRelease.aspx?relid=162074.
[5] Prasad, N. (2019). Maternity leave and female labour force participation: Evidence from India. The Indian Journal of Labour Economics, 62(2), 317-337.
[6] International Labour Organization. (2018). Global wage report 2018/19: What lies behind gender pay gaps. Geneva, Switzerland: International Labour Office
[7] Chatterjee, U., & Gupta, N. D. (2019). Maternity leave and women’s labor market outcomes: Evidence from India. Journal of Family and Economic Issues, 40(2), 238-252.
[8] International Labour Organization (2017). Women and men in the informal economy: A statistical picture. https://www.ilo.org/wcmsp5/groups/public/—dgreports/—dcomm/documents/publication/wcms_626831.pdf.
[9] University of Delhi (2016). Work-Life Balance and Job Satisfaction among Working Women in the Service Sector. https://www.researchgate.net/publication/321592451_Work-Life_Balance_and_Job_Satisfaction_among_Working_Women_in_the_Service_Sector.
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Very informative