July 27, 2025

Women in Pakistan Earn Significantly Less Than Men, With 40% Gap in Informal Sector

A recent International Labour Organization (ILO) report reveals that women across Pakistan earn approximately 25% less per hour than men and 30% less on a monthly basis, even when performing work of equivalent value. This disparity is starkly amplified in the informal and household sectors, where women earn up to 40% less than their male counterparts.


📊 Key Findings

  • Hourly Wage Gap: Women earn roughly PKR 750/hour, while men earn PKR 1,000/hour, marking a 25% disparity
  • Monthly Wage Gap: Because women typically work fewer hours, the gap widens to around 30%.
  • Informal Sector Gap: Holds an even larger 40% wage gap, due to weak enforcement of labour protections .
  • Formal Sector Equality: In contrast, wages are nearly equal in the formal sector and public sector where labour regulations are more strictly applied .

🔍 What’s Driving the Gap?

  1. Discrimination & Structural Barriers
    A major portion of the wage gap cannot be explained by differences in education, experience, or job roles—strongly suggesting systemic bias and discrimination.
  2. Enforcement Weakness in Informal Sector
    Informal work—home-based roles, street vending, and agricultural labour—is largely unregulated, lacks social protections, and offers lower wages; women dominate these roles, deepening the gap.
  3. Life Cycle & Motherhood Penalties
    Women over age 35 face larger disparities due to career interruptions from childcare, leading many into flexible yet poorly paid jobs.
  4. Educational Limitations
    With low female literacy and limited higher education access—particularly in rural areas—women often end up with low-skill jobs in the informal labor market .
  5. Women in Pakistan Earn Significantly Less Than Men, With 40% Gap in Informal Sector.

🌍 Why It Matters: The Broader Implications

  • Economic Growth & Inclusion
    Closing the gender pay gap could boost women’s economic participation and accelerate inclusive socioeconomic progress.
  • Vulnerability & Exploitation in Informal Economy
    Informal work leaves women exposed to wage theft, exploitation, and lack of benefits such as health insurance, pensions, or maternity leave.
  • Regional Benchmarking
    While Pakistan’s GPG has improved from 33% in 2018 to 25–30% now, it still lags behind peers—Sri Lanka (22%), Nepal (18%), and Bangladesh, which surprisingly reports a negative gap (women earning more on average).

🛠️ Policy Measures & Solutions

The ILO and Pakistan’s policymakers are advancing a National Action Plan focused on:

  • Aligning labour laws with ILO Conventions 100 and 111 guaranteeing equal pay for work of equal value.
  • Formalising informal work, extending labour protections, minimum wage enforcement, and access to benefits like maternity leave and social security .
  • Gender-neutral job evaluations and transparent wage-setting to ensure equitable compensation based on actual job value .
  • Tackling occupational segregation by upskilling women and enabling transitions into formal, better-paying jobs.
  • Expanding maternity leave, child-care support, and safe, flexible workplace policies to ease re-entry into the workforce post-childbirth .

đź§· Summary Table

AspectFindings in Pakistan
Hourly Pay Gap~25% (Women earn PKR 750 vs. PKR 1,000 for men)
Monthly Pay Gap~30%, due to fewer hours worked by women
Informal Sector GapUp to ~40% wage disparity
Formal/Public Sector GapMinimal to none when laws are enforced
Key CausesDiscrimination, weak enforcement, low education, motherhood
Policy SolutionsLaw reforms, formalisation, job evaluations, flexible work

âś… Final Thoughts

Pakistan’s entrenched gender wage gap—especially the up to 40% disparity in informal work—underscores deep-rooted inequality that goes beyond education or skills. The ILO’s latest findings call for urgent reform: a coordinated policy roadmap, stronger law enforcement, and institutional changes to elevate women’s economic status.

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