Pakistan has one of the largest gender pay gaps (GPG) in the world, with women earning significantly less than men across most sectors, according to a report by the International Labour Organisation (ILO).
The findings indicate that wage differences are largely unexplained by factors such as skills, education, or labour market characteristics, pointing to gender-based discrimination as a key factor.
The ILO report states that Pakistan’s gender pay gap is among the highest in South Asia. In Sri Lanka, the GPG based on hourly wages is 22%, in Nepal, 18%, while in Bangladesh, women earn 5% more than men on average.
In Pakistan, however, the pay gap stands at 25% for hourly wages and 30% for monthly wages, meaning that women earn between Rs700 and Rs750 for every Rs1,000 earned by men.
“When considering differences in the composition of the population of male and female employees the GPG in Pakistan is equal to 25% when measured using hourly wages. That is, women earn on average 750 Rupees for every 1,000 Rupees earned by men during an hour of work,” read the report.
Despite the persistent wage gap, the report notes a gradual improvement over time, with the GPG dropping from 33% in 2018. However, disparities remain highly sector-dependent. The formal sector shows a nearly negligible pay gap, where employment laws ensure wage equality.
In contrast, the informal and household sectors record a pay gap exceeding 40%, highlighting severe disparities in unregulated jobs. The public sector reflects a relatively lower pay gap, suggesting that strict labour laws help reduce wage inequality.
The ILO underscores that the gender pay gap is a key indicator of economic inequality. While many countries have implemented equal pay legislation, the ILO Equal Remuneration Convention, 1951 (No. 100) remains one of the most widely ratified conventions, emphasizing the need for stronger enforcement to address persistent wage disparities.
