Periodic Labour Force Survey (PLFS) 2025: What Does It Reveal About Gender Wage Gap in India?

Why in News?

The Periodic Labour Force Survey (PLFS) 2025 highlights that while women’s wages are growing at a faster rate than men’s, a significant gender wage gap continues to persist across sectors in India.

Background and Context

India’s labour market has undergone structural changes in recent years, with increasing attention on inclusivity, gender equality, and workforce participation.

Despite policy efforts, gender disparities in employment and wages remain deeply entrenched due to :

• Socio-cultural norms
• Occupational segregation
• Unequal access to education and skills

The gender wage gap reflects broader structural inequalities and remains a critical concern for achieving inclusive growth and social justice.

About Periodic Labour Force Survey (PLFS)

The Periodic Labour Force Survey (PLFS) is the primary source of data on employment and unemployment in India.

Key Features of PLFS

• Conducted by the National Statistical Office under the Ministry of Statistics and Programme Implementation
• Launched in 2017 to replace the earlier Employment-Unemployment Surveys
• Provides annual and quarterly estimates of labour market indicators
• Covers both rural and urban areas
• Measures key indicators such as : 
  • Labour Force Participation Rate (LFPR)
  • Worker Population Ratio (WPR)
  • Unemployment Rate (UR)
  • Wage rates across sectors

Objectives

• Capture dynamic changes in employment trends
• Provide reliable and timely data for policymaking
• Enable analysis of gender, sectoral, and regional disparities

What is Gender Wage Gap?

The gender wage gap refers to the difference in average earnings between men and women for similar work or across sectors.

In Indian Context

• Women consistently earn less than men across job categories
• Gap exists in both formal and informal sectors
• Reflects systemic inequalities in labour markets

Nature of the Wage Gap in India

1. Across Employment Categories

Women earn less than men in :

• Regular salaried jobs
• Casual labour
• Self-employment

2. Sectoral Variations

• Wider gaps in informal sector
• Relatively narrower but persistent gaps in formal sector

3. Occupational Segregation

Women are concentrated in low-paying sectors such as :

• Agriculture
• Domestic work
• Informal services

4. Informal Sector Dominance

A large proportion of women are employed in the informal sector, where :

• Wage regulation is weak
• Social security is absent

Key Findings from PLFS 2025

• Women’s wage growth has outpaced men’s in recent years
• However, the absolute wage gap persists
• Informal sector wage growth slowed to around 3.9%
• Job creation in informal sector has weakened
• Disproportionate impact on women due to higher informal employment
• Female Labour Force Participation shows improvement, but quality of employment remains a concern

Causes of Gender Wage Inequality

1. Low Female Labour Force Participation (FLFP)

Fewer women in the workforce reduces bargaining power and economic opportunities.

2. Occupational Segregation

Women are overrepresented in low-skilled, low-paying jobs.

3. Limited Access to Education and Skills

Skill gaps restrict entry into high-paying sectors like technology and manufacturing.

4. Social Norms and Gender Roles

Unpaid care work and household responsibilities limit women’s working hours and career progression.

5. Informality of Employment

Lack of contracts, wage protection, and social security leads to exploitation.

Informal Sector Concerns

The PLFS data indicates slowing momentum in the informal sector, which is crucial because :

• A majority of women workers are employed here
• Wage growth is low (around 3.9%)
• Job creation has slowed

This directly impacts women’s income security and widens inequality.

Significance of Addressing Gender Wage Gap

1. Inclusive Economic Growth

Reducing wage inequality boosts overall productivity and GDP growth.

2. Poverty Reduction

Higher wages for women improve household incomes and living standards.

3. Gender Equality

Ensures fair opportunities and economic empowerment.

4. Demographic Dividend Utilisation

Enhances workforce participation of women, a key untapped resource.

5. Social Development

Improves outcomes in education, health, and nutrition for families.

Challenges

• Persistent social norms restricting women’s work
• Lack of childcare and support infrastructure
• Informalisation of jobs limiting wage regulation
• Gender bias in hiring and promotions
• Skill mismatch and digital divide

Way Forward

• Promote female labour force participation through flexible work policies and childcare support
• Strengthen skill development programmes targeted at women
• Formalise employment and expand social security coverage
• Enforce equal pay legislation and transparency in wages
• Encourage women’s participation in high-growth sectors like STEM and manufacturing
• Address unpaid care work through policy and social recognition
• Improve data collection for gender-disaggregated labour statistics