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Pakistan Struggles with One of the Highest Gender Pay Gaps, Says ILO Report
Pakistan has one of the highest gender pay gaps globally, with women earning 25-30% less than men. Discrimination, not skills, drives this gap, says ILO.
ND
by News Desk
2025-03-11
Pakistan Struggles with One of the Highest Gender Pay Gaps, Says ILO Report

Pakistan continues to grapple with one of the largest gender pay gaps (GPG) in the world, with women earning significantly less than men in most sectors, according to a report released by the International Labour Organisation (ILO) on Monday.

The report reveals that Pakistan’s GPG stands at 25% when calculated using hourly wages and 30% when considering monthly wages. This means that, on average, women earn only Rs700–Rs750 for every Rs1,000 earned by men.

Unlike common assumptions that wage disparities stem from differences in education, experience, or skill levels, the ILO states that most of Pakistan’s gender pay gap remains “unexplained”, indicating the presence of gender-based discrimination in the workforce.

Pakistan’s Pay Gap Worse Than Regional Peers

Pakistan's GPG is notably higher than that of its South Asian counterparts. According to the report:

  • Sri Lanka’s GPG is 22% (hourly wages).
  • Nepal’s GPG stands at 18%.
  • Bangladesh shows a reversed pay gap of -5%, meaning women, on average, earn slightly more than men.

These figures highlight Pakistan’s struggle with gender-based wage inequality, placing it among the worst-performing countries in the region.

Pay Gap Varies Across Job Sectors

The report also finds significant variations in the GPG across different sectors:

  • Formal Sector: Close to zero, meaning employment laws help ensure wage equality.
  • Public Sector: Relatively low due to strict regulations on fair pay.
  • Informal & Household Sectors: Pay gap exceeds 40%, highlighting severe wage disparities where legal protections are weak or absent.

Despite these challenges, there has been a gradual improvement in reducing wage inequality. In 2018, Pakistan’s GPG was 33%, compared to the current 25-30%, indicating slow but steady progress.

Call for Policy Action

Gender pay gaps remain a key indicator of workplace inequality. The ILO highlights that most governments have laws ensuring equal pay, yet enforcement remains a challenge. The ILO Equal Remuneration Convention, 1951 (No. 100) is one of the most widely ratified international agreements aimed at addressing this issue.

For Pakistan to bridge the wage gap, experts emphasize the need for stronger legal enforcement, better access to formal employment for women, and increased awareness about wage discrimination.
Tagged:

PakistanEconomy

GenderPayGap

EqualPay

WomenAtWork

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