Stark Inequalities Persist as Women in Pakistan Earn Up to 40% Less Than Men

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ISLAMABAD July 20 – Women in Pakistan’s workforce continue to face significant wage disparities, earning between 25% to 30% less than men in formal employment, and up to 40% less in the informal sector. These findings were revealed in the newly released Gender Pay Gap Report, which highlights entrenched inequalities and systemic discrimination in the country’s labour market.The report identifies key contributors to the gap, including occupational segregation, informal employment, and widespread discriminatory practices. Alarmingly, much of the disparity cannot be explained by observable factors such as education or experience, pointing to deep-rooted bias within hiring and wage-setting systems.In the informal economy—where most women are concentrated—the lack of legal protections and enforcement mechanisms further worsens wage inequalities. The report also notes that women are disproportionately trapped in low-paying, low-mobility roles, a phenomenon known as the “sticky floor” effect.Although Pakistan has reduced its overall gender pay gap from 33% in 2018, it still lags behind regional peers. Experts warn that unless structural reforms are undertaken to address these disparities, women’s economic participation and progress will remain severely constrained.