Indian Women Earn 25% Less Than Men; Real Salaries Dip Despite 90% Rise in 12 Years

The findings, based on the Periodic Labour Force Survey (PLFS) 2023–24, World Bank data and earlier Employment-Unemployment Surveys, show that while nominal salaries of regular workers rose by about 90% during the period, real wages — adjusted for inflation — declined by 4%.

In 2024, the average monthly income of a salaried worker stood at around ₹21,000. By comparison, self-employed individuals earned an average of ₹13,200 per month, while casual or daily wage labourers earned roughly ₹9,000. Despite offering relatively higher pay, salaried employment accounts for only 23% of India’s workforce — less than half the global average of 52%.

The gender wage gap remains a persistent concern. Female salaried employees earn roughly one-fourth less than men on average, reflecting structural disparities in pay, occupational segregation and workforce participation.

International comparisons underline India’s limited formal employment base. While 94% of workers in the United States and over 90% in Germany and Japan are salaried, the share is 54% in China and 46% in Bangladesh. India’s 23% places it well below many lower- and middle-income economies.

Within India, significant state-level variations exist. Punjab leads with 56% of its workforce in salaried jobs — more than double the national average — followed by Gujarat and Maharashtra at 31% each. Bihar trails at 9%. Among southern states, Tamil Nadu performs best at 34%, ahead of Karnataka and Kerala at 26% each.

Education levels strongly influence employment type. Among highly educated individuals, 57% hold salaried positions. In contrast, only 6% of uneducated individuals are in regular jobs, with more than half engaged in informal or unpaid work. Those educated up to Class 12 are more likely to be self-employed, often as small traders or farmers.

Shop assistants constitute the largest share of salaried workers at 7.1%, followed by domestic workers (6%) and manufacturing workers (5.1%). Professionals such as software developers account for 3.3%.

Job security and benefits remain limited. Over half of salaried employees lack a written contract. Around 57% do not receive pension or provident fund benefits, and 85% are deprived of gratuity. Only 6–7% of India’s total workforce is in permanent regular employment.

The data highlight the dual challenge of expanding formal employment and ensuring equitable, inflation-adjusted wage growth in a rapidly evolving economy.