Pay transparency can help narrow gender inequalities in the workplace

October 11, 2022
On average, women are paid about 20% less than men worldwide, primarily due to gender-based discrimination.

Pay transparency measures can help address the gender pay gap and reduce broader gender inequalities in the labour market, highlighted the International Labour Organisation (ILO) in a report.

The report, Pay Transparency Legislation: Implications for Employers’ and Workers’ Organisations, found pay transparency can provide employees with the information and evidence they require to negotiate wages and serve as a basis to challenge potential pay discrimination. For employers, pay transparency can help identify and address pay discrimination that might otherwise negatively affect how the firm functions and its reputation.

According to the ILO, women are typically paid 20% less than males worldwide. Although other factors including education, working hours, occupational segregation and skills and experience play a role, discrimination based on gender is cited as the main cause of that.

Women have been among the worst affected by the pandemic, in terms of income security, disproportionate representation in some hardest-hit sectors, and the unequal and gendered division of family responsibilities.

Manuela Tomei, Director of the ILO Conditions of Work and Equality Department, said, “These are still early days for pay transparency. We see countries pursuing different approaches to advance it, which shows that there is no ‘one-size fits all’ solution.”

“While more time is needed to assess the effectiveness of the different measures and practices, it is encouraging that governments, workers’ and employers’ organisations seek to devise innovative solutions, such as pay transparency, to tackle a stubborn problem.”

This article was first published on HRM Asia

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