Male workers in India saw wages increase by 7.2% on average in 2022 compared with 7% for women, according to a report released on Tuesday.
Globally, the paycheque increase was 6.7% on average for men compared with 6% for women, says the ‘ADP Research Institute's People at Work 2023: A Global Workforce View’ report.
The report, based on a survey of more than 32,000 workers across 17 countries, shows that the gender pay gap in India was lower than the global average.
It says male and female workers in India expect their pay cheques to increase at the same rate-- 8%--over the next 12 months.
Some 63% of the Indian survey participants expressed confidence in their company's advancement toward achieving gender pay equality over the last three years. This surpasses countries in the Asia-Pacific (APAC) region, with Australia at 34%, China at 51% and Singapore at 31%.
Although the male workers surveyed received slightly higher pay raises than women, they are more inclined than women to express dissatisfaction with their compensation. Only 25% of the male workers said they believe they are compensated fairly compared with 31% for women. Overall, 49% of workers said they continue to feel they are underpaid, while 17% said they feel they are overpaid, according to the survey.
In India, senior employees saw significantly higher pay increases last year compared with the younger workers, with those aged 55 and above reporting an average pay increase of 10%. In contrast, workers in the 18-24 age group saw a lower average pay hike of 6%. While those in the 25-30 age bracket saw an increase of 7% on average, it was about 8% increase for the ones in the 35-44 and 45-54 age groups. The pattern underscores India Inc.'s practice of rewarding senior talent for their experience and valuable skills.
This trend also carries over to expectations for upcoming pay increases, with employees aged 55 and above anticipating the highest average pay hike at 11%. In comparison, those in the 35-44 years and 45-54 years age groups expect 9% increase, while those in the 25-34 age bracket expect 8% increase on average, and the youngest workers in the 18-24 age group expect about 7%.
"While rewarding experienced talent is essential, it's equally vital to meet the expectations of the youngest generation entering the job market,” said Rahul Goyal, managing director, ADP India & Southeast Asia. “Ignoring the compensation needs of Gen Z could prove short-sighted, leading to low morale among younger employees and failing 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."
India has also shown significant improvement in DEI (diversity, equity and inclusion) initiatives over the last three years, which has brought it to the top of the pack in the Asia-Pacific (APAC) region. About 59% of the respondents in India acknowledged enhancements in DEI initiatives over the last three years, topping Australia’s 42%, China’s 57% and Singapore’s 35%.
While 24% of Australians and 21% of Singaporeans said their employers don’t participate in DEI initiatives, the number falls to 11% in China and 6% in India, a sharp contrast to 30% in Europe.
Indian workers are also increasingly optimistic about skills development opportunities, emphasising employers’ commitment to providing equal growth opportunities to all.
Globally, the paycheque increase was 6.7% on average for men compared with 6% for women, says the ‘ADP Research Institute's People at Work 2023: A Global Workforce View’ report.
The report, based on a survey of more than 32,000 workers across 17 countries, shows that the gender pay gap in India was lower than the global average.
It says male and female workers in India expect their pay cheques to increase at the same rate-- 8%--over the next 12 months.
Some 63% of the Indian survey participants expressed confidence in their company's advancement toward achieving gender pay equality over the last three years. This surpasses countries in the Asia-Pacific (APAC) region, with Australia at 34%, China at 51% and Singapore at 31%.
Although the male workers surveyed received slightly higher pay raises than women, they are more inclined than women to express dissatisfaction with their compensation. Only 25% of the male workers said they believe they are compensated fairly compared with 31% for women. Overall, 49% of workers said they continue to feel they are underpaid, while 17% said they feel they are overpaid, according to the survey.
In India, senior employees saw significantly higher pay increases last year compared with the younger workers, with those aged 55 and above reporting an average pay increase of 10%. In contrast, workers in the 18-24 age group saw a lower average pay hike of 6%. While those in the 25-30 age bracket saw an increase of 7% on average, it was about 8% increase for the ones in the 35-44 and 45-54 age groups. The pattern underscores India Inc.'s practice of rewarding senior talent for their experience and valuable skills.
This trend also carries over to expectations for upcoming pay increases, with employees aged 55 and above anticipating the highest average pay hike at 11%. In comparison, those in the 35-44 years and 45-54 years age groups expect 9% increase, while those in the 25-34 age bracket expect 8% increase on average, and the youngest workers in the 18-24 age group expect about 7%.
"While rewarding experienced talent is essential, it's equally vital to meet the expectations of the youngest generation entering the job market,” said Rahul Goyal, managing director, ADP India & Southeast Asia. “Ignoring the compensation needs of Gen Z could prove short-sighted, leading to low morale among younger employees and failing 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."
India has also shown significant improvement in DEI (diversity, equity and inclusion) initiatives over the last three years, which has brought it to the top of the pack in the Asia-Pacific (APAC) region. About 59% of the respondents in India acknowledged enhancements in DEI initiatives over the last three years, topping Australia’s 42%, China’s 57% and Singapore’s 35%.
While 24% of Australians and 21% of Singaporeans said their employers don’t participate in DEI initiatives, the number falls to 11% in China and 6% in India, a sharp contrast to 30% in Europe.
Indian workers are also increasingly optimistic about skills development opportunities, emphasising employers’ commitment to providing equal growth opportunities to all.
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