In the gleaming tech hubs and bustling boardrooms of modern India, women are challenging and reshaping long-held narratives. Today, they are more educated than ever, increasingly visible in the workforce, and steadily rising to positions of influence. Yet, one stubborn disparity persists: the gender pay gap. On average, Indian women earn just Rs 40 for every Rs 100 earned by men. This gap is far from a mere statistical quirk. Despite notable progress, India has achieved 64.1% of its overall gender parity goals according to the World Economic Forum’s Global Gender Gap Index 2024 (the country ranks a disappointing 129th out of 146 nations). The International Labour Organisation (ILO) reports that as of 2025, Indian women still earn roughly 20% less than men for comparable work. The issue extends beyond unequal pay for equal work; it reflects deeply rooted perceptions about labour and worth. In a country rapidly advancing towards global economic leadership, why do women continue to settle for less?
The negotiation table
Experts say the gender pay gap is as much about cultural and psychological barriers as it is about economic structures. Negotiation, the act of asking for more, often presents unseen challenges for many women. Dr Rahul Chandhok, senior consultant and head of psychiatry at Artemis Lite, New Delhi, explains, “Long before a woman sits down to negotiate, she may be grappling with years of internalised messaging. Society teaches her that assertiveness is aggression, ambition should be softened, and harmony is more important than self-advocacy.” Chandhok highlights the concept of relational self-construal, where many women’s identities are closely tied to relationships and interconnectedness. “A woman might fear that being assertive will damage relationships or paint her as selfish,” he says. “So, she tones down her demands or avoids negotiation altogether.”
The cost of hesitation
These quiet hesitations at the bargaining table carry heavy consequences. CA Manish Mishra, founder of GenZCFO, a financial consulting firm, notes that men tend to approach salary discussions boldly, citing market trends and personal achievements, while women often adopt a more cautious approach. “This caution becomes systemic,” Mishra explains. “Lower starting salaries lead to smaller raises and bonuses over time, creating a widening wealth gap. This isn’t about ability, it’s about conditioning.”
A pattern embedded in policy
These dynamics don’t occur in isolation. A 2024 study in the International Journal of All Research Education and Scientific Methods confirms persistent gender pay disparities across industries, despite public commitments to equity. In finance alone, men earn an average of Rs 1,50,000 more annually than women in equivalent roles. At senior management levels, the gap widens further: Rs 10,00,000 for men compared to Rs 9,20,000 for women. Median salaries echo this imbalance — Rs 7,20,000 for men, Rs 6,54,000 for women.
Crucially, regression analysis shows gender remains a significant predictor of salary, even after accounting for role, experience, and industry. India’s legal framework theoretically supports equal pay. Advocate Abhishek Rastogi points to the Equal Remuneration Act of 1976, now part of the Code on Wages, 2019, which prohibits wage discrimination based on gender. The Constitution, under Article 39(d), also mandates equal pay for equal work.
“But laws alone aren’t enough,” Rastogi stresses. “The real challenge lies in addressing everyday subtle inequities — the coded language, overlooked contributions, and entrenched norms that are difficult to detect and even harder to change.”
What true reform looks like
If entrenched power structures created the pay gap, structural reforms must be part of closing it. Sushmita Srivastava, Associate Professor of Organisation and Leadership Studies at SPJIMR, suggests key interventions to shift the status quo:
Gender-conscious negotiation training: Not just for women, but for all employees. “Acknowledging gender dynamics and practising negotiation in supportive environments can transform how it’s perceived and performed,” Srivastava says.
Bias audits and language reviews: Companies must scrutinise performance feedback for coded language like “too aggressive” or “not a team player,” which often conceals gender bias.
Redefining ‘merit’: Moving beyond rewarding constant visibility or traditional leadership styles. “We must value quieter, collaborative contributions and ensure informal opportunities are inclusive,” she emphasises.
Normalising assertiveness as collaboration: Studies show women negotiate more effectively on behalf of others. Framing self-advocacy as team advocacy, “This raise helps me contribute better to the team,” can be a powerful shift.
Increasing representation: The more women in leadership,
HR, and decision-making roles, the more norms around negotiation can evolve, from competition and scarcity towards dialogue and shared growth.